Procedure Number: 5.3.1-P
Current Effective Date: 11/30/2020
Original Effective Date: 07/01/2010
Revision Dates: 07/01/2010, 07/01/2013, 09/01/2017, 05/31/2019, 11/30/2020
Revision Number: 5
Responsible Official: System Director of Treasury Management
To provide guidance on journal entries and approvals.
This procedure applies to all KCTCS employees.
Journal entries, including correcting entries, are keyed into the PeopleSoft Financial Module by employees as designated by management.
- Supporting documentation must be attached to each journal entry.
- In the event that documentation is not attached to a journal entry, approval will be obtained from the KCTCS Assistant Vice President (AVP) for Accounting and Treasury Services with a message in the description column of the journal entry denoting the location where supporting documentation can be located.
- If a journal entry, or correcting entry, contains more than one business unit or fund,
the preparer should attach a completed BA6 in addition to supporting documentation.
- In the event that a Journal Entry - Form BA6 is not attached to a journal entry, approval will be obtained from the KCTCS AVP of Accounting and Treasury Services and included with the documentation.
- The proper journal source code should be used.
- Contact System Office General Accounting to obtain a copy of Journal Processing and Journal Approval training documents.
Journal entries are automatically routed to the proper approvers via PeopleSoft’s electronic workflow.
- Approvers are responsible for ensuring that journal entries are accurate, complete and supported by proper documentation.
Management is responsible for establishing processes to ensure that every journal entry recorded is valid and posted to the proper business unit and chartstring in a timely manner (within one month of the occurrence of the need for the journal) to ensure that KCTCS’ financial records are accurate.
When a service or commodity is provided by one business unit to another business unit, the journal entry should record a debit to a recharge account for the business unit that receives the service or commodity and a credit to a recharge account for the business unit that provides the service or commodity.
- Example: recharge codes are 54000 Current Expense and 55100 Current Expense – Grants.
- Use of a revenue account between business units may only occur when true revenue generated from activity with an external unit is reclassified from one business unit to another.
When resources are shared (such as employees, paper, postage, telephone, etc.) between business units or between departments within a business unit, the business unit which received the resources should debit the expense account and the business unit which provided the resource should credit the expense account.