Lesson 5: RTI and Transaction Entries

Comparison: Transaction Agency and RTI Agency

Scenario

The General Land Office (GLO) purchased services from the Texas Facilities Commission (TFC). TFC established an RTI and receives the payment. GLO inadvertently overpays and TFC refunds the overpayment.

Making a sale

Transaction Agency

• GLO purchases services from Texas Facilities Commission
• Pays for "goods or services"
• Uses T-code 225

RTI Agency - based on the example above

• TFC establishes Recurring Transaction Index (RTI) number
• Uses T-code 970 or 971 on the 55 (550) Recurring Transaction Profile screen
• Receives payment from General Land Office

Processing a refund

Transaction Agency

• TFC returns overpayment
• Uses T-code 222

RTI Agency

• GLO establishes RTI number
• Uses T-code 972 on 55 (550) Recurring Transaction Profile screen
• GLO receives refund from Texas Facilities Commission

Who does what?

The seller sets up the RTI and provides the number to the buyer.

The buyer enters the ITV to make the payment.

If there is an overpayment situation, the entity receiving the refund sets up the RTI.

Memory Tip: The entity receiving the revenue sets up the RTI. Receiving, revenue and RTI all start with R.

Next: Pass-through Funds to Local Bank Accounts