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Journal Entry Guidelines

Journal Entry Guidelines. General Accounting Financial & Accounting Services. Purpose. Purpose: To provide guidance to the campus community on the steps necessary to prepare, support, approve, and submit the entries. . Agenda. Introduction C-FOAPAL Journal Entry Form

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Journal Entry Guidelines

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  1. Journal EntryGuidelines General Accounting Financial & Accounting Services May 08, 2013

  2. Purpose • Purpose: • To provide guidance to the campus community on the steps necessary to prepare, support, approve, and submit the entries.

  3. Agenda • Introduction • C-FOAPAL • Journal Entry Form • Supporting Documentation • Approvals • Submission to FAS • Deadlines • Questions • Additional Information

  4. Introduction Journal entries are used to record financial transactions into the general ledger. Transactions are summarized to create the financial statements for WFU. • Types of journals entries: • Standard • Recurring • Reversal • Correction • Allocation • Transfer

  5. Introduction • Most common types of manual journal entries: • Corrections- Used to correct amounts and/or reclassify errors. • - Amount posted to GL $132.25. Correct amount $123.25. • - Reclassfrom Supplies (53010) to Housekeeping Supplies (53018). • Transfers – Move available funds from one fund/org to another. • - Physics gives funds to Chemistry to co-sponsor guest speaker. • Allocations - Services provided by one department to another department. • - Copy Center allocates charges to departments.

  6. C-FOAPAL C-FOAPAL is the acronym representing each element of the chart of accounts. • C= CHART CODE • F = FUND CODE • O = ORGANIZATION CODE • A = ACCOUNT CODE • P = PROGRAM CODE • A = ACTIVITY CODE (OPTIONAL) • L = LOCATION CODE (OPTIONAL)

  7. C-FOAPAL Optional Required* • Chart Code • One character (alpha). • WFU has four charts to organize financial information. • - Chart R – Reynolda Campus • - Chart H - Reynolda House Museum of American Art • - Chart F – WFU Development Foundation (Where gifts of real property are held until sold) • - Chart X – WFU Foundation (Transactions related to property on and in the vicinity of Deacon Boulevard) • Each entity has its own tax ID number. • Individual entities also needed for separate internal and external financial reporting.

  8. C-FOAPAL Optional Required* • Fund Code • 6 characters (alpha-numeric). • The source of the funding. “Where” the money is coming from. Grants Gifts Investment Income Tuition and Fees

  9. C-FOAPAL Optional Required* • Examples:

  10. Organization Code 6 characters (numeric). Designates a department or a unit of budgetary responsibility. “Who” pays the expenses or receives the revenue of a transaction. C-FOAPAL Optional Required*

  11. C-FOAPAL Optional Required* • Account Code • 5 characters (numeric). “What” type of transaction.

  12. C-FOAPAL Optional Required* • Program Code • 2 characters (numeric). • Not included on journal entry form. Located in Banner tables maintained by FAS. • Used by FAS for required external reporting. Identifies the “purpose” or “function” of revenue and expenditures. • The following are examples of the functional classifications: • Instruction (10), Academic Support (25), Student Services (35)

  13. C-FOAPAL Optional Required* • Activity Code • 6 characters (alpha-numeric). • Optional FOAPAL element typically used to track revenue and expenses for a special program or event. • Can be used with multiple orgs or set up to be used with only one.

  14. C-FOAPAL Optional Required* • Location Code • 6 characters (alpha-numeric). • Optional FOAPAL element primarily used with fixed assets to identify physical places or sites, such as buildings and room numbers. • Used by facilities when projects cover multiple rooms in a building to segregate costs by room.

  15. Journal Entry Form Website: http://finance.wfu.edu/faculty-staff/financial-reporting

  16. Journal Entry Form Journal Entry Template

  17. Journal Entry Form Example Journal Entry

  18. Journal Entry Form • Hash Total – Total debits plus total credits (formula). Used by FAS when keying journal entries. • Preparer – Print name, signature, phone ext., and date. • Approver - Print name, signature, and date.

  19. Journal Entry Form • Sequence No. – General Accounting uses sequence numbers when keying entries into Banner. If possible, do not skip lines when completing form or include lines with FOAPAL elements and zero amounts. • FOAPAL (highlighted in orange) – Refer back to previous section on C-FOAPAL.

  20. Journal Entry Form • Debit/Credit • Debits increase asset and expenses. Decrease liabilities and revenue. • Credits increase liabilities and revenue. Decrease assets and expenses. • Debits must equal credits. • Enter debits and credits as positive numbers not negative numbers. Round 2 decimals ($1.334 = $1.33). Rounding formula: =round(A1,2) • Line Description – Maximum 35 characters (character count formula after description). Should provide enough information for users to understand purpose.

  21. Supporting Documentation • All journal entries must be adequately supported by attached documentation that explains the purpose and supports the amount of the journal entry. • Documentation may be in the form of a Cognos report , receipt, invoice, email, or some other record of the transaction. • Do not include sales tax. • If JE amount is a portion of invoice amount, show how amount was calculated. • Note: Make sure supporting documentation is sufficient when sending JE form to FAS since it is required by auditors.

  22. Approvals • FAS will be reviewing approvals on all entries to determine if • satisfactory authority has been established before recording the • entry.  If an approval is in question, FAS will contact the preparer to • gather more information. • In order to prevent delays in the processing of your entries, please • make sure that your entries have sufficient approvals prior to • submission.  • Examples of sufficient approvals include but are not limited to: • Preparer's Supervisor • Preparer's departmental Budget Officer • Preparer's Department Head

  23. Submission To FAS • Journal entries must be approved prior to submission to Financial & Accounting Services (FAS). • All journal entries should be sent to FAS located at University Corporate Center (UCC), attention to Ruth Smith.

  24. Deadlines • Journal entries must be received by Financial & Accounting Services by 5:00 PM on the 2nd business day of the new month. • All journal entries received after this deadline will only be processed if time permits.

  25. Questions

  26. Additional Information For more information about Journal Entries, as well as, other useful tools, please visit the Financial Reporting website. Website: http://finance.wfu.edu/faculty-staff/financial-reporting General Accounting Contact List:

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