California Code of Regulations
Title 2 - Administration
Division 2 - Financial Operations
Chapter 2 - State Controller
Subchapter 2 - Budgeting Procedures for Counties
Article 3 - Expenditure Detail
Section 985 - Cost Applied

The anticipated transfer of the cost of services of one budget unit rendered to another is shown as a credit to the total appropriations of the budget unit from which the transfer will be made. The posting is to the account, Costs Applied, which has just the reverse effect as the regular appropriation accounts. In the receiving budget unit the appropriation is to the object appropriate to the service rendered. The same appropriation amount thus appears in the county budget twice, once in the receiving budget unit and once in the transferring budget unit. The latter, however, is in effect canceled by the negative appropriation to the Costs Applied account.