Administrative Procedures
Journal Entries
Procedure Number: 5.3.1-P
Current Effective Date: 03/01/2023
Original Effective Date: 07/01/2010
Revision Dates: 07/01/2010, 07/01/2013, 09/01/2017, 05/31/2019, 11/30/2020, 03/01/2023
Revision Number: 6
Revision Summary: general revisions
Responsible Official: Vice President, Administrative Services
References:
1. Purpose
To provide guidance on journal entries.
2. Scope
This procedure applies to all business units.
3. Procedure
3.1 General
- Management is responsible for establishing processes to ensure the validity, accuracy,
and timeliness of journal entries.
- Journal entries must accurately represent the activity being recorded.
- Journal entries must be correct, complete, and supported by proper documentation.
- Journal entries must be approved in a timely manner.
- Journal entries must be posted within one month of the occurrence of the need for
the journal.
- Management designates employees that are responsible for entering, and approving journal
entries.
- Contact System Office General Accounting with questions on this business procedure.
3.2 Supporting Documentation
- Supporting documentation must be attached to each journal entry.
- The Assistant Vice President (AVP) for Accounting and Treasury Services may approve
exceptions to this requirement.
- Journal entries, for which an exception has been approved, must specify the location
of supporting documentation.
- Journal entries, for which an exception has been approved, must specify the location
of supporting documentation.
- The Assistant Vice President (AVP) for Accounting and Treasury Services may approve
exceptions to this requirement.
- Specific forms must be attached to certain types of journal entries.
- The BA6 form is required for inter-unit and inter-fund journals (see Section 3.3).
- Journal entries, for which an exception has been approved, must include a copy of the approval.
- The BA19-B form is required for cash receipt journals.
- The BA6 form is required for inter-unit and inter-fund journals (see Section 3.3).
3.3 Inter-Unit, Inter-Fund, and Inter-Department Journal Entries
- Inter-unit, inter-fund, and inter-department journals are used to record activity
between business units, between fund groups, or between departments.
- Services or sales between business units (BU) or departments are recorded as follows:
- Debit the expense account for the BU/department that receives the service or item.
- Credit the recharge account (#54000) BU/department that provides the service or item.
- Resources, other than salaries and benefits, (e.g., equipment, paper, etc.) shared
between BU’s or departments are recorded as follows:
- Debit the expense account for the BU/department that receives the resource.
- Credit the expense account for the BU/department that provides the resource.
- Salaries shared between BU’s or departments are recorded as follows (if the entry
is made before HRBENS is generated for the month):
- Debit the salary expense account for the BU/department that receives the resource.
- Credit the salary expense account for the BU/department that provides the resource.
- Note: HRBENS calculates benefits related to salaries.
- Salaries shared between BU’s or departments are recorded as follows (if the entry
is made after HRBENS is generated for the month):
- Debit the recharge account (#52000 Salaries, #53000 Benefits).
- Credit the recharge account (#52000 Salaries, #53000 Benefits).
- Revenue transferred between BU’s or departments is recorded in revenue accounts. Revenue
accounts may only be used on inter-unit, and inter-department journal entries when
transferring revenue.
- Debit the BU/department that transfers revenue out (i.e., gives up revenue).
- Credit the BU/department that transfers revenue in (i.e., receives revenue).