Chargebacks

Based on state law, the Office of the Comptroller establishes chargeback accounts. A chargeback account is established after the seller department completes a form and submits it to the CTR Legal Team. The seller department is then issued an "ISELL" vendor code by CTR. The seller department can then begin creating and sending encumbrance documents to the Commonwealth departments purchasing their services. Written and verbal communication between the SELLER and BUYER department is crucial to make this business process work effectively.

Step 1: The Internal Encumbrance Document (IE)

 

Buyer and Seller Departments work together to create the Internal Encumbrance (IE), document. The IE identifies where the money is transferred from, by including the Buyer’s accounting information.

 

Step 2: The Internal Transaction Initiator (ITI)

Once the Seller Department performs billable services or delivers goods to the Buyer department a bill is created by the Seller, referred to as an Internal Transaction Initiator.  It identifies the Seller department’s accounting information so that the Buyer department knows where to transfer funds and it provides a figure for the amount of the bill.

 

 

Step 3: The Internal Transaction Agreement (ITA)

The Buyer Department makes the actual payment using the Internal Transaction Agreement, (ITA). 

Buyers are required to make payment on undisputed bills within 30 days from receipt by completing the ITA.

 

 

Interdepartmental Encumbrance Transaction (IET)

Every two weeks, on the Thursday after the Tuesday payroll run, IET documents are created so that the Commonwealth can pay Medicare tax, unemployment insurance (UI) and universal health insurance (UHI) contributions on behalf of Commonwealth employees.

 

Departments should routinely check, on the Thursday that the IET documents are created, to see if any documents are in reject status. It is important to note that departments can currently view the documents and the error messages but CTR must make the adjustments in order to clear them.

OFFICE OF THE COMPTROLLER OF THE COMMONWEALTH

William McNamara, Comptroller of the Commonwealth

One Ashburton Place, 9th Floor, Boston MA 02108

comptroller.info@mass.gov

For your protection, please do not email personal information (e.g. Social Security Number, Bank Account Number, Passwords).

For assistance, please call us at

(617) 727-5000

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