Journal Entry. Reference Manual Leadership and Talent Development

Transcription

1 Journal Entry Reference Manual Leadership and Talent Development

2 JOURNAL ENTRY Reference Manual First printing Revised , , , , , , , , , , , , , , , The University of Minnesota shall provide equal access to and opportunity in its programs, facilities, and employment without regard to race, color, creed, religion, national origin, gender, age, marital status, disability, public assistance status, veteran status, sexual orientation, gender identity, or gender expression. This publication/material is available in alternative formats upon request. Please contact University of Minnesota Leadership and Talent Development, (4-UOHR). Printed on recycled and recyclable paper with at least 10 percent postconsumer material Regents of the University of Minnesota. All rights reserved.

3 Table of Contents Fiscal Responsibilities Guide... 1 Overview of Journal Entry... 2 Accounting Periods... 8 Month- and Year-End Module Closing University Policies and Procedures Header Page Lines Page Journal Process Change ChartField Values Page Journal Entry Approvals Errors Journal Status Errors Budget Errors Reversing a Journal Entry Copying a Journal Entry Creating a Standard Journal Entry General Ledger WorkCenter Searching for and Viewing a Journal Entry Viewing a Journal Entry: Search Results Page Journal Entry Inquiries General Ledger Inquiries General Ledger Activity Report Journal Entry Queries Month-End Cleanup Process Reporting Appendix A: Debits and Credits Appendix B: Defining SpeedTypes for ChartField Strings Appendix B: Defining SpeedTypes for ChartField Strings (cont.) Terminology Resources

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5 Fiscal Responsibilities Guide Initiator Preparer Approver Fiscal Monitor Principal Investigator/ Project Manager Academic/ Administrative Head Individuals who request or initiate an event that results in a financial transaction. They are responsible for conducting activities and events within the boundaries of compliance with University policies and procedures and funding agency restrictions. Any University employee has the potential to be an initiator. Individuals who prepare, code, review, and/or process sponsored and nonsponsored accounting transactions in compliance with University policies and procedures and funding agency restrictions. They also resolve discrepancies and prepare reports. Individuals who review and approve sponsored and nonsponsored accounting transactions to ensure compliance with University policies and procedures and funding agency restrictions. They also identify problems and ensure resolutions. Individuals responsible for policy interpretation and implementation for a department (or collegiate unit or higher). They manage the sponsored and nonsponsored accounting and fiscal operations of a department (or collegiate unit or higher) in compliance with University policies and procedures and funding agency restrictions. Individuals who provide leadership for a research grant and/or a subunit within a department by managing, problem solving, ensuring compliance with policies, and monitoring budgets. Individuals who provide leadership for the unit and the University in general. They participate in policy formation and ensure policy implementation for their unit. They are also responsible for their unit s overall financial management. Journal Entry Reference Leadership and Talent Development, OHR

6 Overview of Journal Entry GENERAL LEDGER The General Ledger is the summary of all of the University s budgeting and financial transactions. All accounting entries entered from transactions created in the modules are sent to the General ledger module as journal entries which are then posted to the Actuals ledger group. The entries are recorded as a double entry with one amount as a credit and the other amount as a debit. The total amount debited and the total amount credited must always be equal. Below is a diagram/flowchart of the financial system showing how the transactions flow from the modules to the General Ledger. FINANCIAL SYSTEM INTEGRATION 2 Leadership and Talent Development, OHR Journal Entry Reference

7 Below is a flowchart of the journal entry process: Overview of Journal Entry (cont.) Start Journal Entry Journal Edit Journal Budget Check Journal Approval Journal Post Stop Journal Correction STEP 1: JOURNAL ENTRY Journal entries enter the General Ledger in two ways: 1. Manual Online Journal Entry. Transactions are input directly into the system by an individual. See the Creating a Journal Entry section of this manual for more details on this process. There are three ways to enter manually: Direct Entry of Journal Data. All manual online journal entries can be entered this way. Standard Journal Entry. This is used for entering journals that are put in on a recurring basis, such as rent or monthly distributions of expenses. A detailed description of this process can be found in the Creating a Standard Journal Entry section of this manual. Copy Journal. In this method, a copy of an existing journal is used to create a new journal. It is used when the data from ChartFields and amounts is the same. A detailed description of this process can be found in the Copying a Journal Entry section of this manual. 2. Automatically Created Journal Entry (Journal Generate Process). Runs regularly scheduled batch jobs midday and overnight. The system accumulates all of the detailed accounting entries from other modules, such as Accounts Payable and Expenses, and creates journal entries that are then posted to the General Ledger. All transactions have already been balanced, edited, and approved before they enter the General Ledger. This process is not covered in this manual or course. These journal entries will be in the system, and the preparer may come across them, but the entries Journal Entry Reference Leadership and Talent Development, OHR

8 Overview of Journal Entry (cont.) STEP 2: JOURNAL EDIT cannot be edited. After the data is entered, a journal edit takes place. A journal edit verifies the journal is balanced and ChartField combinations are valid. Journal edits can take place through a manual process or a batch process. Both of these processes are described below. Manual Process. For journals that are manually entered online, journal edits take place after the data has been entered. They can be done at the creation of the journal, or later during updates, as long as the journal hasn t been posted. In this process, the preparer must manually select Edit Journal from a list of processes on the Lines page. See the Creating a Journal Entry section of this manual for more on this process. Batch Process. Journals can also be edited automatically during regularly scheduled nightly batch edit jobs. Any journal that hasn t yet been submitted for approval and that doesn t have a journal status of T will be picked up for batch processing. When the journal edit is executed or the batch edit process is run, a status appears in the journal entry indicating whether the journal has passed journal edit or has errors. If the status is V (valid), the journal can continue on to the budget check process. If the status is E (error), the journal must be corrected before it can continue being processed. Other status values are covered in the Lines page of the Creating a Journal Entry section of this manual. Changes to the journal can take place up until the time it is posted. 4 Leadership and Talent Development, OHR Journal Entry Reference

9 Overview of Journal Entry (cont.) STEP 3: JOURNAL BUDGET CHECK A journal budget check verifies a budget exists for the ChartField string. Journal budget checks can take place manually or in a batch process. Both of these processes are described below. Manual Process. When journals are manually entered, a budget check occurs at the same time a journal edit is done for newly created entries. Thereafter, the preparer needs to manually select Budget Check from a list of processes for subsequent checks. A budget check should be done whenever data in the fields have been changed. Batch Process. Journals can also be budget checked during regularly scheduled batch edit jobs. These are automatically done nightly once a journal is saved. When the budget check is executed, a status appears indicating the budget status. If the status is V (valid), it indicates that the entry is within budget and that a budget has been set up. The process can continue to the next step. If the status is V (valid) and a warning sign appears notifying the user that the entry is not within budget, the journal can continue processing but the preparer should be aware the journal is overbudget. If the status changes to E (error), it means a budget has not been set up for one of the ChartField strings. The journal cannot continue processing. Either the wrong ChartField has been entered or no budget has been set up for the ChartField. the RRC manager to make a request to set up a budget for a certain ChartField string. Further information on budget checking can be found in the Budget Checking section of this manual. Journal Entry Reference Leadership and Talent Development, OHR

10 Overview of Journal Entry (cont.) STEP 4: JOURNAL APPROVAL Once the journal passes edit and budget check, the preparer must manually submit the journal for approval. If the preparer runs the manual edit and budget process, the journal can be immediately submitted for approval. If the preparer chooses to let the system pick up the journal for the nightly batch edit process, the following day the preparer must search and open up the journal entry and manually submit it for approval. Directions for how to do this can be found in the Creating a Journal Entry section of this manual. Journals are simultaneously routed to the primary approver and to a pool of one or more alternate approvers. A journal needing approval will remain in the primary approver s queue until it has been approved. In the case that a journal has not been approved or sent back within five days, the preparer will be notified by a system-generated . Journal preparers will follow up with the approver when a journal has not been approved within the five days. Approval History information includes the names of the approvers for the journal. The financial system routes the journal for approval based on both the Source field (ONN or ONS) and the Journal Class (initiating DeptID). Entries that include a sponsored project are sent to a certified approver based on the Source field selection ONS. Nonsponsored entries with total debit/total credit amount of $30,000 or greater are sent to a central approver. The entry appears on the designated approver s worklist, and the designated approver receives an notification that a journal needs to be approved. The approver can take action on a journal by selecting either Approve, Send Back, or Hold. Approved Journal. If it is approved, the journal continues automatically on to the posting process. The preparer is not notified. Send Back. If the approver selects Send Back, an entry appears in the preparer s worklist and an notification is sent to the preparer, and no further processing occurs on the journal until changes are made. The preparer must go back in to that journal, make corrections, do a new edit and budget check, and then submit the journal for approval again. Further information on viewing approvals can be found later in the Viewing Journal Entry Approvals section of this manual. STEP 5: JOURNAL POSTING Journals that have been approved are posted automatically via a nightly posting process. Once the journal has been posted, it cannot be changed or deleted. 6 Leadership and Talent Development, OHR Journal Entry Reference

11 Overview of Journal Entry (cont.) A journal entry is used to record financial transactions in the General Ledger and consists of (1) a ChartField string and amounts to be debited, (2) a ChartField string and amounts to be credited, (3) a date, and (4) an explanation for the entry. For the University, an account consists of a ChartField string that includes Fund, DeptID, Account, and other required or optional ChartFields. The types of financial transactions that are recorded through a journal entry in the General Ledger are: Transferring of Funds Redistributing Expenses Correcting General Ledger Entries Balance Sheet Transactions Permanent movement of resources from one fund to another fund, or from one unit to another within the same fund. Some transfers are mandatory (required by external or legal obligations), and others are nonmandatory (made at the discretion of the governing board or management). Transfers can happen within the same fund (intrafund) or between two different funds (interfund). Transfers can be related to sponsored funds, and nonsponsored funds. Decreasing the expenses of one account and increasing the expenses of another. This is commonly used when expenses are split between multiple units for a common activity (e.g., sharing a copy machine). Expenses may also be redistributed based on actual end use of items. Effort should be made to correctly process transactions using the appropriate ChartField string. If this is not done, the transaction must be corrected as soon as possible. Revenue and expenses may both need to be corrected from time to time. Keep in mind that negative revenues and expenses cannot be created with a correction, and there may be restrictions based on the fund value and sponsored activity. Transactions between operating accounts and balance sheet accounts, or transactions among balance sheet accounts. University departments use balance sheet accounts to record assets and liabilities in the General Ledger. Balance sheet accounts are to be used to accrue expenses or revenue, defer expenses or revenue, record an asset, and record a longterm liability. Journal Entry Reference Leadership and Talent Development, OHR

12 Accounting Periods REGULAR ACCOUNTING PERIODS The accounting period in which a journal entry is posted is determined by the date on the Header page. For example, if a journal is dated August 12, it will be posted in Period 2. Transactions relating to a month (period) that are processed after that month has ended should be dated as of the last day of the month to which the transaction relates. For example, if the current date is May 4, and a transaction relating to April is being processed, it should be dated April 30. Assuming that period is still open, this transaction will be posted in Period 10. Period Month July August September October November December January February March April May June Periods 1 through 12 are considered the regular accounting periods. These are used when the module is still open. Please see this manual s section on Module Closing for further details. 8 Leadership and Talent Development, OHR Journal Entry Reference

13 Accounting Periods (cont.) ADJUSTMENT PERIODS Unlike non-adjusting journal entries, where the date of the journal determines the accounting period, the accounting (adjusting) period for adjusting entries is determined by the adjustment period selected on the Header page. The list of available adjusting entry periods can be displayed when Adjusting Entry is selected in the Adjusting Entry field. Only open adjustment periods can be selected. Although the date does not determine the (adjusting) period to which an adjusting entry posts, entries still must be dated appropriately in the same manner as non-adjusting journal entries. If the appropriate dates are not used for adjusting entries, they will not be reflected properly in department reports nor will they be picked up by the closing process or recorded accurately in the financial statements. For example, a transaction that is entered during the departmental year-end adjusting period must be dated 6/30 for it to be properly reflected in department reporting and the University s financial statements. Period Month July August September October November December January February March April May June The periods 901 through 912 are used by the Resource Responsibility Center (RRC) for period journal entry adjustments to modules that have been closed. These are mainly used by Auxiliary Services. 913 Used by the RRCs for year-end adjustment entries Used by Accounting Services for year-end adjustments st Quarter 2nd Quarter 3rd Quarter Used by Accounting Services for quarterly financial statement adjusting entries. Journal Entry Reference Leadership and Talent Development, OHR

14 Accounting Periods (cont.) Period Month 0 Used to store the balance forward amount (e.g., beginning balances) for balance sheet accounts as of the beginning of each fiscal year. Updates to amounts in this period are made only during the year-end closing process. No other journal transactions can be recorded in this period. 998 This is a default period created in the financial system and is not used by the University. 999 This period is used to record the results of the yearend closing process. No other journal transactions can be recorded in Period Leadership and Talent Development, OHR Journal Entry Reference

15 Month- and Year-End Module Closing MONTHLY CLOSING SCHEDULE The General Ledger module closes around 9:00 a.m. on the seventh business day of the next month for periods 1 through 12. This means that no journal entries can be posted for that period after the seventh business day. This is to ensure that no entries are recorded after the period close. However, the General Ledger is reopened the Friday night prior to the third Saturday of the following month for processing of endowment transactions; then the GL is closed again, once the endowment processing is complete. For example, a transaction that needs to be recorded in August (period 2) is entered in the financial system on September 5. Since it is not past the seventh business day of September, period 2 is still open, so the transaction can be posted in August. The journal entry is dated August 31 and is posted to period 2. AUGUST Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 First day of Period GL closes for Period Last day of Period 2 SEPTEMBER Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 First day of Period GL closes 11 for Period Last day of Period 3 Journal Entry Reference Leadership and Talent Development, OHR

16 Month- and Year-End Module Closing (cont.) YEAR-END CLOSING SCHEDULE In period 12, the General Ledger module closes on the morning of the seventh business day. For endowments, the General Ledger is reopened the Friday night prior to the third Saturday of the following month, and closes once the processing is complete. At the end of the fiscal year, the General Ledger adjustment period 913 closes 10 business days after it was opened. JUNE Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 First day of Period GL closes for Period JULY Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 First day of Period Period and FY close; Adjustment Period 913 opens Adjustment Period 913 closes Leadership and Talent Development, OHR Journal Entry Reference

17 Month- and Year-End Module Closing (cont.) DEPARTMENT YEAR-END CLOSING PROCEDURES Departments will enter their final year-end accounting entries in period 913 in the financial system. Period 913 is an adjusting period, so the journal must be marked as an adjusting entry and period 913 must be selected as the adjusting period. These journals should be dated 6/30/YYYY. For additional details, see the section on Creating a Journal Entry earlier in this manual. Journal entries to be processed in period 913 include: Inventory Accounts receivable Unrecorded expenses ChartField string balance transfers Expense transfers (nonsponsored only) ACCOUNTING SERVICES YEAR-END CLOSING PROCEDURES Accounting Services will enter central year-end entries (required to prepare the financial statements) in periods 914 and 915. These journals will need the same information that is entered on a departmental year-end adjusting entry, only the adjusting period will be different. Period 914 will be used for all regular financial statement adjusting entries; period 915 will be used for any audit adjustments that must be recorded. Journal Entry Reference Leadership and Talent Development, OHR

18 University Policies and Procedures Policies are needed to administer the University in accordance with state and federal legislation, reasonable administrative practice and the delegation of authority by the Board of Regents. Administrative policies are divided into these six subject areas: academic/research, financial, human resources, information technology, operational, and senate. A University policy satisfies all of the following criteria: 1. It is a governing principle that mandates or constrains actions. 2. It has institution-wide application. 3. It changes infrequently and sets a course for the foreseeable future. 4. It helps ensure compliance, enhances the University s mission, or reduces institutional risk. 5. It is approved at the senior levels of the University. Procedures are a set of instructions on how to accurately and appropriately process accounting transactions. Processing Internal Accounting Transactions Policy The purpose of these transactions is to accurately reflect authorized intra- and interfund financial activity. This includes efforts to: Initially record revenue to accurately reflect the source of revenue and type of activity that generated it. Initially align expenses with revenue sources. Properly transfer resources between Chartfield strings. Properly match revenue and expense. Accurately record assets, liabilities, and fund balances at the end of an accounting period. This policy helps the University maintain stewardship over University assets by monitoring and controlling these internal transactions. Internal transactions have unique risks in that they have minimal review by external parties. Inaccurate, unauthorized, or undocumented internal transactions often result in audit disallowances, especially for sponsored project funding. Accurate internal transactions will improve the quality of financial reporting, improve compliance with regulatory requirements, and minimize inefficiencies in document correction. 14 Leadership and Talent Development, OHR Journal Entry Reference

19 University Policies and Procedures (cont.) Processing Internal Accounting Transactions Policy (cont.) Related Procedures Adjusting or Correcting Internal Accounting Transactions for Sponsored Accounts Financial managers should initially align expenses with corresponding cash received in a fiscally responsible manner which eliminates the need to move expenses at a later date. Frequent errors in recording expenses may indicate the need for improvements in accounting practices and/ or internal controls. Recognizing, however, that legitimate reasons can exist for the transfer of expenses in the General Ledger, certain exceptions are permitted. See the Policy Web site for details on this procedure. Adjusting/Correcting Internal Accounting Transactions on Nonsponsored Accounts Financial managers should initially align revenue with the appropriate activities in a fiscally responsible manner that eliminates the need to move revenue at a later date. Frequent errors in recording expenses may indicate the need for improvements in accounting practices and/ or internal controls. Recognizing, however, that legitimate reasons can exist for the movement of revenue on the General Ledger, certain exceptions are permitted. See the Policy Web site for details on this procedure. Originating Internal Accounting Transactions There are three categories of transfers included in this policy: (1) mandatory intrafund or interfund transfers, (2) nonmandatory intrafund transfers, and (3) nonmandatory interfund transfers. Different procedures are required for each. See the Policy Web site for details on this procedure. Additional Info Types of Internal Accounting Transactions There are several types of internal accounting transactions, including fund transfers, internal sales, and balance sheet transactions. Transfers Mandatory transfers represent legal obligations to transfer funds, related to internal loan repayments or required financial aid matching grants. Mandatory transfers should be processed only by Accounting Services. Nonmandatory transfers are not based on any legal obligation but are based on management discretion over use of unit resources. Journal Entry Reference Leadership and Talent Development, OHR

20 University Policies and Procedures (cont.) Additional Info (cont.) These transfers can be processed by departments, but may be subject to additional review by Accounting Services. To process a nonmandatory transfer, a journal entry will be prepared. This entry must include the appropriate accounting information and justification and will be subject to the normal journal review and approval process. Non-mandatory transfers involving sponsored funds should only be processed by Sponsored Financial Reporting. Balance Sheet Transactions Balance sheet accounts are used to account for University resources under accrual accounting guidelines. Balance sheet transactions record such things as accounts receivable, accounts payable, accrued expenses (liabilities), deferred revenues, and capital assets. Many balance sheet transactions will be recorded through activity in subsidiary modules (e.g. Accounts Receivable, Accounts Payable). However, under appropriate circumstances balance sheet transactions will need to be recorded via a manual journal entry directly in the General Ledger. These transactions will primarily be recorded at year-end. Accruing Expense: Goods or services have been received from an external party, but the invoice to support payment has not been received or entered in the system. Since the goods or services have been received, the transaction should be recorded in the current period. Since the documentation to support payment will be received in a future period, to avoid double-counting this expense, the transaction must be reversed in a future period. To record an accrued expense, a manual General Ledger entry will be prepared to record the expense and related liability in the current period. This entry should be set to reverse in the appropriate future period. Accruing Revenue: Goods or services have been provided to an external party, but the bills to support receipt of payment has not been generated or entered in the system. Since the goods or services have been provided, the transaction should be recorded (revenue should be recognized) in the current period. Since the bill will be generated and payment will be received in a future period, to avoid double-counting the revenue, the transaction must be reversed in a future period. To record an accrued revenue, a manual journal entry will be prepared to record the revenue and related receivable in the current period. This entry should be set to reverse in the appropriate future period. 16 Leadership and Talent Development, OHR Journal Entry Reference

21 University Policies and Procedures (cont.) Additional Info (cont.) Prepaid Expenses: Payment has been made for a good or service that will be used in a future period. The transaction to record the prepaid expense asset will be recorded when the invoice is processed in the Accounts Payable module. The transaction(s) to use up (expense) the prepaid asset will be recorded with a manual journal entry (or entries) in the General Ledger. This entry will record an expense amount and reduce the amount of the prepaid asset. Deferred Income: Cash has been received before the revenue it represents has been earned. The transaction to record the deferred revenue will be recorded through the Accounts Receivable/Billing modules when the cash deposit is processed. If the cash received does not relate to a bill generated in the Accounts Receivable/ Billing module, the transaction to recognize the revenue will be recorded with a manual journal entry in the General Ledger. This entry will reduce the deferred income liability amount and record the recognized revenue. Internal Sales Internal sales transactions will be all be recorded through the Accounts Payable module. If there are corrections to be made to these transactions, they may be processed with a manual General Ledger journal entry. For further details on internal sales, see Policy Selling Goods and Services to University Departments and related procedures. Approval and Routing Policy Approval authority should be consistent with the University s Statement of Management Direction, which says authority to act and responsibility for performance should reside at the lowest possible organizational level. Authorized signers should be those that know enough about the transaction to ensure its accuracy and consistency with policy. Many levels of approval are not recommended, unless higher levels add value to the transaction. Designate separate staff to be responsible for each of these types of transactions: 1. Committing to or authorizing payment for payroll, purchases, or cash disbursements. 2. Receiving or distributing goods, checks, or cash. 3. Recording transactions in the University s financial system. If it is not possible to have different staff responsible for these functions, a supervisor or other staff member should periodically check the validity and accuracy of the work. Journal Entry Reference Leadership and Talent Development, OHR

22 University Policies and Procedures (cont.) These controls maintain integrity of handling the University s business transactions and help reduce the potential for fraud. Reconciling and Verifying General Ledger Accounts and Other Financial Information Policy This policy governs reconciling, verifying, and substantiating financial information used by University personnel for administrative and programmatic decision-making. Review of financial information should be performed on a regular and timely basis. Accountability and procedures must be assigned and in place in each department to ensure that inaccuracies or incomplete financial information identified during the reconciliation or verification process are investigated and corrected in a timely manner. Reconciliation, verification, and substantiation are essential for an effective internal control environment to ensure that: The information transmitted to, contained in, and reported from the University s financial system is accurate, complete, and recorded in a timely manner. The information can be relied on for making financial and administrative decisions. Fraud, theft, compliance violations, and other irregularities are quickly detected and reported to the appropriate authorities. University personnel must comply with the requirements of this policy to ensure that an effective internal control environment is maintained. Related Procedures Reviewing and Verifying Revenue, Expenditures, and Other Financial Reports Revenue and expenditure reports, payroll reports, and other financial reports should be verified for accuracy and completeness. Various methods may be employed to determine the accuracy of financial information. It is acceptable to use a shadow system as long as it agrees back to the General Ledger. See the Policy Web site for details on this procedure. 18 Leadership and Talent Development, OHR Journal Entry Reference

23 University Policies and Procedures (cont.) Reconciling and Verifying General Ledger Accounts and Other Financial Information Policy (cont.) Documenting Financial/ Accounting Transactions for All Nonsponsored and Sponsored Transactions Policy Reconciliation of Balance Sheet Accounts Procedure Reconciliation is the process of comparing information that exists in two systems or locations, analyzing differences, and making corrections so that the information is accurate, complete, and consistent in both locations. Balance-sheet accounts must be reconciled on a periodic and timely basis to verify that all items were correctly posted to the account. All funds within the balance-sheet account must be included in the reconciliation unless previous arrangements have been made. Without performing reconciliations, inaccurate recording of transactions may occur that would result in incorrect reporting and could impact resources. See the Policy Web site for details on this procedure. All university faculty and staff initiating, preparing, completing, or approving any sponsored or nonsponsored financial transactions must comply with the justification and documentation standards established by this policy and all other associated policies, procedures, and job aids. The originating organization must ensure the transaction justification and supporting documentation includes complete information about the transaction. Financial transaction justification and documentation must contain answers to the following: WHY is the transaction being completed and HOW does the transaction relate to the ChartField string affected or charged, when the relationship to the account is not clear? WHAT is the transaction for? WHO initiated the transaction? and WHO are the affected individuals or units? WHERE and WHEN did (or will) the activity take place? The justification should not repeat information provided by the ChartField string or restate the Account value in the description. It should provide additional information. The transaction justification and any other required documentation (receipts, etc.) should be sufficient to clearly explain the transaction to someone inquiring about it, such as an auditor, at a later date. Journal Entry Reference Leadership and Talent Development, OHR

24 University Policies and Procedures (cont.) Documenting Financial/ Accounting Transactions for All Nonsponsored and Sponsored Transactions Policy (cont.) Justification for Expense Transfers The following information is required for All Non-Sponsored & Sponsored Transactions dealing with non-salary expense transfers : In documenting answers to the 5 Ws, the preparer must: Indicate the date of the original charge. For sponsored transactions this information should be included in the Reference field on the Lines page. For nonsponsored transactions this information should be included in the Long Description field on the Header page. Reference the number of the original accounting document and the account. For sponsored transactions this information should be included in the Journal Line Description field on the Lines page. For nonsponsored transactions, this information should be included in the Long Description field on the Header page. Justify why the cost is being transferred. If the cost is being moved onto a sponsored account, this explanation is particularly important for accountability to sponsors. It cannot merely state that the transfer was made to correct error or to transfer to correct project. The form must state how and why the error occurred. This information is needed to adequately support the validity of this cost on the project and may be reviewed by auditors. Description of the cost being transferred. Note steps taken to avoid errors in the future, if not simply a keystroke error. The originally charged document should contain the required justification. If this transfer alters this justification in any way, the change should be reflected in the transfer justification. Additional justification (reason for delay) required for transfers processed outside of allowable transfer window listed in Administrative Policy: Processing Internal Accounting Transactions. 20 Leadership and Talent Development, OHR Journal Entry Reference

25 University Policies and Procedures (cont.) Charging Sponsored Costs Outside the Award Period This policy outlines the requirements for obtaining a sponsored Project value before the sponsored project award process is completed, and for incurring costs on a sponsored project outside of the official project start and end dates. New Projects If principal investigators plan to charge expenses for a new or competing renewal award before it is completely processed or before the start date, they must establish an advance or preaward Project value. Advance Account Charges incurred prior to the start date of a contract are usually unallowable charges because they were incurred outside the dates of the final agreement. However, sometimes the agreement language is still being negotiated on the anticipated start date. In such a case, the principal investigator can request an advance sponsored Project value to begin the project. The start date on this advance Project value is the anticipated start date of the project. The charges on this advance Project will be allowable because once the agreement is signed, the start date on the agreement will coincide with the effective date of the advance Project. Preaward Account Some sponsors allow charges to be incurred prior to the start date of the agreement. Federal sponsors usually permit charges up to 90 days before the start date and many businesses funding clinical trials allow start-up costs on those projects. In these cases, the principal investigator can request a preaward project. Even though the charges are incurred outside the dates of the final agreement, they are allowable because sponsor policy permits them. Continuing Projects If principal investigators plan to incur expenses for work originally planned for future budget periods, they must document in advance that the accelerated spending is not an overdraft. This policy and its related procedure provide instructions for documenting this accelerated spending, if permitted by the sponsor. This policy does not apply to accelerated spending on NIH modular grants. Specific institutional approval is not required for charges that are incurred after the end of the project or budget period. Departments incur these expenses at their own risk, and any expenses not allowed by the sponsor will be charged to a departmental account in accordance with Policy 3.2.5, Removing Uncollectible Costs Charged to sponsored Journal Entry Reference Leadership and Talent Development, OHR

26 University Policies and Procedures (cont.) Charging Sponsored Costs Outside the Award Period (cont.) Allocating Temporary Investment Pool Income Policy projects. Examples of this type of risk include incurring expenses on the sponsored account when there is a break in support between continuation budget periods and while waiting for sponsor approval of an extension request. Reason for Policy Principal investigators have legitimate reasons for needing preaward or advance accounts, for charging costs on these accounts, and for incurring costs planned for future budget periods. However, these accounts and costs put the University at risk because they may not be covered by sponsored agreements and the sponsors could refuse to pay the costs. This policy outlines internal controls and procedures that ensure accountability over the funds, meet required sponsor regulations, and provide documentation for audits. The University invests its resources to maximize interest earnings. The Office of Budget and Finance allocates some of the income earned by the temporary investment pool (TIP) to University departmental accounts. Under certain market conditions, income may be allocated as interest earnings to accounts with positive cash balances. In addition, interest-bearing accounts may be required by some sponsors when the prepayments on the grant exceed the expenditures. Conversely, interest is charged against accounts with negative cash balances. The TIP allocation process provides an incentive for units to establish and maintain proper budgeting and accounting practices. Maintaining positive balances helps contribute to the amount of investment income the University earns. This policy allows some of that income to be allocated back to the units that helped earn it. Managing University Records Retention Policy The University Records Management program provides systematic control of information from creation to final disposition. The Records Management program also provides a timetable and consistent procedures for maintaining the University s information on all campuses and in all media, moving the records to inactive storage when appropriate, and disposing of the records when they are no longer valuable to the organization. The Records Management program will do the following: reduce the cost of records maintenance; retain records as required by federal, state, and other regulatory agencies; preserve the records that are vital to the University; and provide needed documentation in the event of litigation. 22 Leadership and Talent Development, OHR Journal Entry Reference

27 Creating a Journal Entry: Header Page Navigate to: Home > General Ledger > Journals > Journal Entry > Create/Update Journal Entries > Add a New Value tab. Field Name Unit Journal ID Journal Date Field Description Defaults to UMN01. Remains as Next until the journal entry is saved. Once it is saved, a numeric value is automatically assigned. The date the journal is entered in the system. Journal Entry Reference Leadership and Talent Development, OHR

28 Creating a Journal Entry: Header Page (cont.) Header is the default tab. This tab applies to all lines within a journal. It displays journal header information that uniquely identifies the journal entry in the system: business unit, journal ID, and journal date. It also contains options for marking the entry as adjusting, for reversing an entry, and for selecting the journal entry approval DeptID. Field Name Long Description Ledger Group Field Description (254 characters) The justification (5 Ws) for the transaction, as well as any other pertinent information that cannot be found anywhere else in the journal entry. Use this space to indicate to the approver that a scanned supporting document has been attached to this journal entry. If this is a journal entry to correct a payment to a human research subject, it is required that the confidentiality of the study and the human subject(s) be maintained. The only justification that is required is Details are on file in the department and available for audit. In addition, any attached supporting document(s) must not identify the human subject nor the name of the study. (10 Characters) Ledger where journal is posted to. Enter Actuals. Actuals. This is the only ledger group used. Budget Dev. For budget journal entries. Not used. Budget Fin. For budget journal entries. Not used. KK Child. For budget journal entries for sponsored activity. Not used. 24 Leadership and Talent Development, OHR Journal Entry Reference

29 Creating a Journal Entry: Header Page (cont.) KK Dtl Exp. For pre-encumbrance and encumbrance entries. Not used. KK Expense. For budget journal entries for expenses. Not used. KK Parent. For budget journal entries for sponsored activity. Not used. KK Revenue. For budget journal entries for revenue. Not used. Auto Generate Lines Leave blank. This checkbox is not selected. Ledger Adjusting Entry Source Reference Number Period SJE Type ADB Date Journal Class Leave blank. Most transactions are processed during regular periods (1 12) and should be marked as a Non-Adjusting Entry. If an entry is being processed during an adjustment period, such as a year-end entry during period 913, it should be marked as an Adjusting Entry. Required field. Can either be ONS (sponsored) or ONN (nonsponsored). It determines how the journal should be routed for the approval process. If ONS is chosen, the system will route the entry to a designated Certified Approver indicated on the approval DeptID. Note: System defaults to ONN. Can be used to provide additional information about a transaction, such as a document number or source. It is not required. For non-adjusting entries, this field is grayed-out and the accounting period is automatically generated based on the date of the entry. For adjusting entries, a specific adjustment period must be entered. Most department users will use only period 913 at year end. Central users in Accounting Services will use periods 914, 915, and 921 through 923. There are two options for this field: leave blank or select Model. Leave blank if this is not a standard journal entry (SJE). If it is an SJE, select Model from the list to make a model SJE. See instructions for standard journal entries later in this manual. Leave at default. Indicates where the system should send the journal for approval. Click on the magnifying glass for a list of DeptIDs, and choose an appropriate DeptID to send to for approval, based on the transaction type, department location, and other factors. An alternate approver is also designated for the journal. Journal Entry Reference Leadership and Talent Development, OHR

30 Creating a Journal Entry: Header Page (cont.) Save Journal Incomplete Status Transaction Code Currency Defaults Reversal: Do Not Generate Reversal Commitment Control <Attachments> Save SpeedType Saves journal entry as incomplete, allowing the entry to be saved and completed at a later time; it will also prevent the entry from being picked up by the nightly editing processes. This field is selected by default, though it can be deselected. Leave at default value of General. Defaults to USD/1. Do not change. Defaults to Do Not Generate Reversals. If the entry should reverse at a later time, this link must be clicked, and information on the Journal Entry Reversal page must be completed at the time the original journal entry is created. More details on this process can be found in the Reversing a Journal Entry section of this manual. Leave at default. Supporting documentation can be attached or viewed through this link. Entry cannot be saved at this point. Entry can be saved only when all required fields are completed on both the Header and Lines pages. SpeedTypes are set up for individual use and available for selection to streamline data input for frequently used ChartField strings. See appendix for detailed instructions. 26 Leadership and Talent Development, OHR Journal Entry Reference

31 Creating a Journal Entry: Lines Page The Lines page is used to record detail lines that comprise a journal transaction. A journal entry must have at least two lines, and total debits must equal total credits. The ChartField values entered here classify the funding source, financial area, and nature of the transaction. Once the Header and Lines pages are complete, the entry can be edited, budget-checked, and submitted for approval. Field Name Unit Journal ID Date Template List Field Description Always UMN01. (10 characters) Remains at Next until the journal is saved. Once it is saved, a journal ID value is automatically assigned. Journal ID is a numeric value. Date specified on the Add New Value page and Header page indicating when the journal entry was created. List of journal entry templates. There are three templates to choose from: General, Nonsponsored, and Sponsored. The default template is the General template. The General template uses all columns/ fields applicable to both sponsored and nonsponsored, whereas the Nonsponsored and Sponsored templates show different required columns/fields based on the different ChartFields used. This can be used to shorten the row length and make it easier to view the journal entry. Note: For cost-share transactions or any other transaction that requires both Program and Project values, the General template must be used. Journal Entry Reference Leadership and Talent Development, OHR

32 Creating a Journal Entry: Lines Page (cont.) Change Values Inter/Intra Unit Select Line Ledger Speed Type Fund DeptID Program PCBU Project Activity An Type Change one value to another value in fields that were incorrectly entered. See the section on the Change ChartField Values page later in this manual for details on how to do this. Not used. Instead, the system automatically creates the appropriate Due To/From lines when there is a cross in Funds and/or DeptIDs. The checkbox on specific lines in a journal that are selected for deletion. The number assigned to each line of the journal entry. The name of the ledger specified on the Header page. A Speed Type must be set up by the individual if desired for input of ChartField strings. See Appendix. (4 characters) Fund value for this distribution line. (5 characters) DeptID value for this distribution line. (5 characters) Program value for this distribution line. This field is required for nonsponsored accounts or for non-construction-inprogress projects. (5 characters) Project Costing Business Unit. Required for sponsored accounts and other approved projects. It identifies the type of project. If it s for a sponsored project, enter UMSPR. For construction-inprogress projects, enter UMCIP. For nonsponsored, leave blank. Note: Enter PCBU first before entering Project. This is necessary in order to get a list of Project values to appear. (8 characters) Project value for this distribution line. This field is required for sponsored projects and for select nonsponsored activities. (1 character) Always 1. This is required for sponsored activity and other approved projects. (Analysis Type) Indicates transaction type. Required for online journals with sponsored project transactions. 28 Leadership and Talent Development, OHR Journal Entry Reference

33 Creating a Journal Entry: Lines Page (cont.) Journal Entry Analysis Type A The following NON-BILLABLE Analysis Types WILL NOT affect the sponsor s invoice. Cost Share Cost Share Analysis Types must be used when entering a manual journal entry ( JE) if the ChartField string includes: Fund, DeptID, Program, PCBU, Project, Activity, Account, CS. Analysis Type Description Summary When to Use CGE Cost Sharing GL Expense The journal entry line indicates cost share and is related to non-salary/fringe. CPY Cost Share Payroll No longer used. Use when an expense purchase is to be included in the cost share requirement. BD1 Total Cost Budget Scenario 1 This is for cost share budgets/budget reallocation. Use for all budget transactions entered into Budget_Fin that use a Project number. CSR Cost Share Revenue Used to fund cost share ChartField strings. Use when allocating resources to a specific cost share ChartField string. Other RFA Redistribute F&A Used to redistribute F&A. Use only with Account or transfer account codes to redistribute F&A in order for the following to occur: Maintain historical reporting of what each DeptID earned in F&A recovery. Departments can zero out the ChartField string. CS ChartField is not required when using Program and Project along with RFA Analysis Type. Training Services, Organizational Effectiveness/OHR Journal Entry Journal Entry Reference Leadership and Talent Development, OHR

34 Creating a Journal Entry: Lines Page (cont.) Journal Entry Analysis Type (cont.) B The following BILLABLE Analysis Types WILL affect the amount billed to the sponsor. Sponsored Projects Sponsored Analysis Types must be used when entering a manual journal entry ( JE) if the ChartField string includes: Fund, DeptID, PCBU, Project, Activity, Account. Analysis Type Description Summary When to Use GLE GL Expense The journal entry line indicates a Project number and is related to non-salary/fringe expenses. This code is used when non-salary/fringe related transactions entered are truly expenses that need to be paid by the sponsor. PAY Time & Labor Actual No longer used. Used Only By Sponsored Financial Reporting (SFR) TIP Temp. Investment Pool Income Used by SFR only when processing TIP. GCA Conversion of Assets No longer used. GLB GL Balance Sheet/ Used by SFR only. Offset GLR GL Revenue Used by SFR only. GPA Program Income Used by SFR only when processing Program income. Addition Method GPD Program Income Deduction Method Used by SFR only when processing Program income. Training Services, Organizational Effectiveness/OHR Journal Entry Leadership and Talent Development, OHR Journal Entry Reference

35 Creating a Journal Entry: Lines Page (cont.) Account FinEmplID CF1 CF2 CS (6 characters) Account value for this distribution line. This value is required. It classifies the nature of the transaction (revenue, expense, asset, or liability). (7 characters) FinEmplID value for this distribution line. FinEmplID uses an employee s ID number. This is an optional field and is used when certain financial activities needs to be tracked to an individual employee. It is required for certain Program values. (10 characters) CF1 value for this distribution line. This is a conditional, centrally defined field with centrally defined rule sets. (10 characters) CF2 value for this distribution line. This is an optional, user-defined field that is used by a college or a department. (2 characters) CS (cost share) is entered for all cost-share transactions when both Program and Project values are required. CS is the only value for this field. Field Name Fund Affil DeptID Affil Amount Stat Stat Amt Field Description (Fund Affiliation) System automatically populates field with a value if the transaction crosses funds. (DeptID Affiliation) System automatically populates field with a value if the transaction crosses DeptIDs. Dollar amount of the transaction line. If amount is a credit, enter a minus sign before the amount. Do not use a dollar sign or commas. Leave blank. Statistical amount of the transaction line. This field is used only when a statistical account is used in the Account ChartField, such as for carryforwards and tip deficits. This is used in Accounting Services. Journal Entry Reference Leadership and Talent Development, OHR

36 Creating a Journal Entry: Lines Page (cont.) UOM Reference Journal Line Description (Unit of Measurement) Leave blank. (10 characters) (mm/dd/yy) Required when doing a sponsored expense transfer. The date of the original transaction is required. (30 characters) Defaults to the account value name once entered in the Account field. For sponsored expense transfers, the document number, such as a payment voucher or invoice, is required in this field. When this is the case, delete the default description, and enter required information. <Projected Balance> This link at the end of each completed journal line displays the Debit Amount and Credit Amount as well as the Projected Balance for the selected chartstring. This feature enables journal preparers and approvers to more closely monitor the impact of journal entries before they are fully processed. Lines to Add (4 characters) Adds another line to the journal entry. To add multiple lines, enter a number before clicking to add. Calculates debits and credits. To aid in balancing the journal, a running total of the number of lines, debits, credits, journal status, and budget status of the journal appear at the bottom of the Journal Entry Lines page. It updates when an entry is saved or another blank line is added. Only balanced entries can post to balanced ledgers. Field Name Find Total Lines Total Debit Total Credits Field Description Not used. Number of total lines for the journal entry. Total amount debited for the journal entry. Total amount credited for the journal entry. 32 Leadership and Talent Development, OHR Journal Entry Reference

37 Creating a Journal Entry: Lines Page (cont.) Journal Status Budget Status Indicates the current status of the journal. D (Deleted). Not used. I (Posting Incomplete). Posting is incomplete because of posting problems. For example, the system might have problems after the reversal journal is created but before the original journal is actually posted. Report as soon as possible. M (Valid Standard Journal Entry Model). This is a valid standard journal entry model that can be used to generate standard journal entries; this journal cannot be posted and will not be picked up for further processing by any batch process. More information on standard journal entries can be found later in this manual. E (Error). Journal has been edited and has errors. Errors could include unbalanced debits and credits or invalid ChartField combinations. Errors must be corrected before the journal can be posted. Click on the Error tab or click <E> under Journal Status to view details of error(s). This will open the Error tab. N (No Status). Needs to be edited. This status is a default value and changes to another status once the edit journal process has been run. P (Posted). The journal entry has successfully been edited, approved, and posted by the system to the appropriate ledger. T ( Journal Entry Incomplete). Save Journal Incomplete Status checkbox was selected on the Header page when the journal entry was first created. To change from T to another status, go back to the Header page and deselect the Save Journal Incomplete Status checkbox. Once this is done, the entry can be edited and budget checked either manually from the Lines page or automatically through nightly batch processing. V (Valid Journal). The journal entry has been edited, there are no errors, and once it s approved, it s ready to be posted. Indicates the budget status of the journal. If the budget status is Error, click this link to access the Commitment Control page, where the error or warning messages can be viewed. Values include: E (Error). There is no budget set for this transaction line. A budget needs to be created before it can be approved or posted. Click the link to view detailed information on the error. N (Not Checked). The budget check process hasn t been run on the entry. V (Valid). The entry passed budget-checking and can be posted. If a warning message pops up, it indicates that the budget has been overspent, but the process can still continue. Journal Entry Reference Leadership and Talent Development, OHR

38 Creating a Journal Entry: Journal Process Field Name Process Field Description Tasks to be performed after all appropriate fields have been entered. Budget Check Journal. Checks the journal lines for valid budget amounts. When the edit journal process is run, a budget check is also done. Copy Journal. Initiates the copy journal process. This is done to copy an existing journal entry and save the copy with a unique journal ID. See Copying a Journal Entry in this manual for copy journal instructions. Delete Journal. Deletes the current journal. Only journals that haven t been posted can be deleted. There is no audit trail of the creation or deletion because the system assumes that a mistake is being corrected. Edit ChartField. Verifies validity of the ChartField string. When the edit journal process is run, the edit ChartField process is also performed. Edit Journal. Initiates the journal edit process. The edit journal process performs both the edit ChartField process and the budget check process. Select this process after completing the creation of a journal, and again after any changes have been made to that journal. See the ChartField Combination Errors and Other Status Errors section of this manual for more information about ChartField combination errors. Print Journal. Not used. 34 Leadership and Talent Development, OHR Journal Entry Reference

39 Creating a Journal Entry: Journal Process (cont.) Refresh Journal. Reverts journal Header and Lines pages back to the version that was last saved. Submit Journal. Initiates the approval process by displaying the journal on the selected approver s worklist and by sending an notification to that approver. The journal is ready to be sent for approval and this option is selected once the journal has passed the editing and budget-checking process. NOTE If a transaction crosses funds and/or DeptID, or in other words there are different funds and/ or DeptIDs on different lines in the same journal, the system automatically creates fund or DeptID balancing entries when the journal edit process is run. After these balancing lines are created, they cannot be edited. The Account ChartField value for these two lines is (Due From/Due To Other Funds). The balance for is zero. The Fund or DeptID value that was originally debited is credited and the Fund or DeptID value that was originally credited is debited on the two new lines. The Fund and DeptID values have a net zero balance. The debits and credits are then added to the Total Debit and Credits. These fund balancing entries are necessary in order for the University to create balance sheets by Fund and DeptID. PROJECTED BALANCE Clicking on <Projected Balance> at the end of each completed journal line will display the Debit Amount and Credit Amount as well as the Projected Balance for the selected ChartField string. This feature enables journal preparers and approvers to more closely monitor the impact of journal entries before they are fully processed. Journal Entry Reference Leadership and Talent Development, OHR

40 Creating a Journal Entry: Journal Process (cont.) 36 Leadership and Talent Development, OHR Journal Entry Reference

41 Creating a Journal Entry: Change ChartField Values Page This page is accessed through a link on the Lines page. It is used to change a field from one value to another. It is most often used when there are many lines to change with the same values. For example, if the DeptID has been incorrectly entered as on ten lines but should be on the same ten lines, the <Change Values> link would be an easy and quick way to fix the problem. Field Name Field Values Change to Selected Field Description The current value to be changed. For example, if the DeptID has been incorrectly entered as but should be 10002, enter in the DeptID field under the Field Value column. The new value that needs to be changed. Per the above example, enter in the DeptID field under the Change To column. The box on the row that needs to be changed. This is required for the change to go through. Journal Entry Reference Leadership and Talent Development, OHR

42 Journal Entry Approvals APPROVAL WORKFLOW When a journal entry has passed the journal edit and the budget edit manual or nightly processes, the preparer can then send it on to the approver(s) by manually selecting Submit Journal on the Lines page of the journal entry. The journal thus enters the workflow process. Workflow then tests the journal entry against a predefined set of business rules. The results of those tests determine the approval routing for the transaction. Levels of Approval Originating Place Dollar Amount DeptID Central Certified Nonsponsored Cluster < $30,000 > $30,000 X X X Accounting Services N/A X Sponsored Cluster < $30,000 > $30,000 X X X X SFR N/A X Primary DeptID Approver Alternate DeptID Approver All journal entries using sponsored or nonsponsored funds (but that did not originate in SPA/SFR or Accounting Services) need to go through a DeptID approver. There is one person assigned per module per DeptID. Unlike other modules, the primary DeptID approver is not determined at the line level but is instead determined at the header level. The DeptID of the initiator of the journal entry is the one selected in the Journal Class field on the Header page. There are no multiple DeptID approvers for one transaction as with other modules. Even if the journal entry s lines include more than one DeptID, it is only routed to one DeptID, that which was selected in the Journal Class field on the Header page. At the same time the journal entry is sent to the primary DeptID approver, it is also sent to an alternate DeptID approver. Only the primary DeptID approver receives notification that a journal entry is waiting to be approved. It is up to the unit to decide when the alternate DeptID approver needs to take action on the journal entry in place of the primary DeptID approver. 38 Leadership and Talent Development, OHR Journal Entry Reference

43 Journal Entry Approvals (cont.) Certified Approver Alternate Certified Approver There is one Certified Approver per DeptID. If the journal entry is prepared at the cluster level and any one line in the journal entry is using sponsored funds, the journal entry must be routed for a second level of approval, by a Certified Approver. ONS (sponsored projects) is selected in the Source field on the Header page in order for the journal entry to be routed to the Certified Approver. There is also an alternate Certified Approver that works in the same way as the alternate DeptID approver. Central Approver Nonsponsored journal entries with a total debit amount of $30,000 or over need to be sent to another second-level approver, the central approver. The journal entry will automatically route to the central approver after the DeptID approvals have been applied. SFR Approver If the journal entry was prepared in SFR, regardless of the total debit amount, it only needs to be approved by an SFR approver. It does not need certified approval. APPROVALS AND PERIOD CLOSING Journal entries needing Accounting Services approval must be submitted to Accounting Services prior to 2:00 p.m. the day before the period close. Journal entries that do not require Accounting Services approval must be fully approved by 10:00 p.m. the night before the period close. The morning of the period close is reserved for final adjustments by Accounting Services. Journal Entry Reference Leadership and Talent Development, OHR

44 Journal Entry Approvals (cont.) VIEWING JOURNAL ENTRY APPROVALS The approval history can be accessed through the Approval tab on any journal entry. Pull up the specific journal entry and select the Approval tab. This will have the details of the approval process history for this specific journal ID. The following codes may show up in the approval history: Approval Status Section The Approval Check Active field indicates whether there is an approval workflow process required for the journal. Approval Status displays the current approved status: Denied. Journal has been denied/sent back by approver. Pending Approval. Journal is waiting for approval. Approval to Post. Journal is approved to post in the overnight process. None. Journal has not been submitted for approval. 40 Leadership and Talent Development, OHR Journal Entry Reference

45 Journal Entry Approvals (cont.) Approval Status Section (cont.) In the Approval Action list box, the approver selects the appropriate action for this journal: Approve. If the transaction meets policy and procedures. Send Back. To send the journal back to the preparer for correction. Hold. To prevent anyone from taking action on the transaction, effectively stops the processing of the transaction. The journal will only proceed through the approval process when it is taken off Hold. Comments are included for those journals that have been sent back or put on a hold status by the approver. Approval History The Approval History group box lists the step and path, with the status, applicable date, time stamp, and user ID for the various activities in the approval process. Journal Entry Reference Leadership and Talent Development, OHR

46 Journal Status Errors When a journal entry is edited, the General Ledger runs several checks and warns if the journal entry cannot be posted. A journal entry cannot be posted if one or more of the following conditions are true: The accounting period (determined by the journal date) is not currently open. Total debits do not equal total credits, and the ledger is defined as a balanced ledger. Any control totals entered with the journal header do not match the actual totals for the journal (debits, credits, statistical units, number of lines). There is a ChartField combination error. If the journal entry contains an error, then it must be corrected. The Errors page can be accessed by one of three ways: the Errors tab, the blue X located in front of Actuals on the line with the error, or the <E> link under Journal Status. 42 Leadership and Talent Development, OHR Journal Entry Reference

47 The following errors may appear after running the edit journal process. 1. ChartField Combination Errors There are eight ChartField combination rules that must be followed in order for a journal to be processed. These errors can be viewed on the Error page. There are no popup error messages. Rule 1: ACDPTFD_RQ All transactions require Fund, DeptID, and Account. Journal Status Errors (cont.) Rule 2: AC_NO_PGPJ The Account code being used does not allow the use of either a Program or Project. If Account is cash, Program and Project must be blank. Rule 3: PGORPJ_RQ The Account code being used requires the use of either a Program or Project. If Account is non-cash, then Program or Project is required. Journal Entry Reference Leadership and Talent Development, OHR

48 Journal Status Errors (cont.) Rule 4: CS_RQ_PGPJ If the Cost Share field is filled in with CS, both the Program and the Project fields must also be filled in. Rule 5: PGPJ_RQ_CS If the Cost Share field is not filled in, either Program or Project can be used, not both. Rule 6: FDSPR_NOPG If the Fund value is a sponsored fund, the Program value must be blank. Rule 7: PG_RQ_FEID For certain Program values, FinEmplID is required. 44 Leadership and Talent Development, OHR Journal Entry Reference

49 Rule 8: FDPJ_RQ_PG Prevents the use of a string that contains a nonsponsored Fund, a Project, and no Program code. Program code is required when a current nonsponsored Fund (1XXX range) and Project are entered. If the ChartField string contains a current nonsponsored Fund and Project, these are the options: Change the Fund to a sponsored Fund (3xxx) OR 2. Analysis Type Errors Remove the Project and use a Program instead OR This is cost share, include a Program code and CS value There are ten analysis type errors that must be followed in order for a journal to be processed. These errors would appear when the incorrect an type is used and can be viewed on the Error page. There are no popup error messages. Rules 1, 2, and 3: CSR Journal Status Errors (cont.) If a transaction uses accounts through , through , or through to fund a cost share ChartField string, the an type must be CSR. Rule 4: CGE If a nonsalary/fringe cost share transaction uses accounts through , the an type must be CGE. Journal Entry Reference Leadership and Talent Development, OHR

50 Journal Status Errors (cont.) Rule 5: RFA If a transaction to redistribute facilities and administration (F&A) uses Program UM003 and the account is through , the an type must be RFA. Rule 6: GLE If a sponsored nonsalary/fringe expense transaction uses accounts through , the an type must be GLE. Rules 7 and 8: GLE If a sponsored transaction uses accounts through or through , the an type must be GLE. Rule 9: GLR If a sponsored transaction uses accounts through , the An Type must be GLR. 46 Leadership and Talent Development, OHR Journal Entry Reference

51 The following errors would appear after clicking <Save>. Journal Status Errors (cont.) 3. Debits do not equal credits. These errors can be viewed on the Error page or through the <E> link under Journal Status. There are no popup error messages. Total debits must equal total credits for a journal entry to be processed. This error must be corrected until they equal. 4. Actual totals does not match control totals. These errors can be viewed on the Error page or through the <E> link under Journal Status. There are no popup error messages. If there is no crossing of funds and/or DeptIDs, there may be a problem with the amounts entered. Recheck data entry and run process again. 5. If a line has no data entered in the fields, the following message appears: If no data needs to be entered on this line, check the appropriate box in the Select column and click the minus sign to delete that row. Run the process again. Journal Entry Reference Leadership and Talent Development, OHR

52 Journal Status Errors (cont.) 6. When the Project ChartField is entered, PCBU and Activity must also be entered. The popup message will appear: Enter appropriate values into the three required fields for those transactions using Project. Run process again. 7. An Type field is left blank when Project is being used. The following popup message appears: Enter the appropriate value in the An Type field on the Lines page. Refer to the Creating a Journal Entry section for details on this field. Do not go back and enter anything on the Projects Information page. Run process again. 48 Leadership and Talent Development, OHR Journal Entry Reference

53 Budget Errors Budget checking can be done either manually when a journal is created or updated, or automatically during scheduled batch process. The budget status, which can be viewed on the Journal Entry Lines page, can be one of the following: E (Error). The journal entry failed to pass because a budget has not been set up. The journal will be saved, but it cannot be picked up for approval and cannot be posted. A budget needs to be set up. N (Not Checked). Journal entry has not been budget checked. V (Valid). The entry passed budget checking and the process updated the control budget ledger. If the entry causes the budget to be overspent, the entry will still be marked as Valid and will still be able to be posted. However, a warning sign will appear informing the preparer of the overspent budget. This also may mean a field was incorrectly entered. Therefore, the values and amounts entered should be rechecked for errors. To view more detailed information for budget checking errors or warning messages click on <E> under Budget Status on the Lines page. Journal Entry Reference Leadership and Talent Development, OHR

54 Budget Errors (cont.) GL JOURNAL EXCEPTIONS PAGE The GL Journal Exceptions page is accessed by clicking the <E> under Budget Status. This page, which is only accessible if there is a Budget Status of E, shows which line s ChartField string has no budget set up. Further details on the budget can be accessed through links described on the following page. Field Name Field Description The journal entry details. Choose Go to Source Entry to display the Lines tab of the journal. Exception Type Override Transaction Maximum Rows Limit information returned for this budget journal to either errors or warnings. When the <Search> button is clicked, the system will show only rows meeting the criteria up to the number of rows specified in the Maximum Rows field. Not used. Leave at the default. The maximum number of journal lines with the specified criteria ( Error, Warning, or Both ) to be displayed in the search results on this specific journal. The default value is 100. When the <Search> button is clicked, if the number of rows retrieved by the system exceeds the number of rows that are specified for the Maximum Rows field, a message to increase the number appears to display the additional rows. If only the <OK> button is clicked, only partial results will continue to be displayed. However, the <OK> button can also be clicked on the message to continue to display less than the total rows retrieved, and the More Budgets Exist checkbox is selected by the system. 50 Leadership and Talent Development, OHR Journal Entry Reference

55 Budget Errors (cont.) More Budgets Exist The system automatically selects this checkbox when the total number of error lines meeting the search criteria is greater than the number of maximum rows selected Not used. Advanced Budget Criteria The Refine Inquiry Criteria page, where criteria can be added to further limit the rows displayed on the GL Journal Exceptions page. The General Ledger Journal Line Drill Down page for a journal row, to view a journal line description and transaction line detail. Override Budget Budget ChartFields Tab Not used. The budget ChartFields for each of the journal lines listed. Access the <Budget Exceptions> (commitment control budget exceptions) and <Budget Inquiry> (budget details) links, where further budget information can be viewed. The <Budget Exceptions> link accesses the Commitment Control Budget Exceptions page. Journal Entry Reference Leadership and Talent Development, OHR

56 Budget Errors (cont.) COMMITMENT CONTROL BUDGET EXCEPTIONS PAGE This page gives a view of the ChartField string from the transaction line and its history of previous transactions that were attempted to be processed against this ChartField string. Field Name Exception Type Advanced Transaction Criteria Budget Detail Field Description Journal entries pertaining to an exception type. Error displays journal entries using that ChartField string that had budget error messages. Warning displays journal entries using that ChartField string that had warning messages. The Refine Inquiry Criteria page displays if a message was received that no transaction rows were found given the criteria entered. In this case, no information about the existing exceptions is initially returned in the Transactions with Budget Exceptions group box at the bottom of the Commitment Control Budget Exceptions page. The Commitment Control Budget Details page displays available budget. 52 Leadership and Talent Development, OHR Journal Entry Reference

57 Budget Errors (cont.) COMMITMENT CONTROL BUDGET DETAILS PAGE This page is accessed through the <Budget Details> link on the Commitment Control Budget Exceptions page. It is used to view the available budget for a ChartField string. Field Name Field Description A bar-chart graph if the budgeted amount is not equal to zero, or a pie chart if the budgeted amount is equal to zero or a budget does not exist. The transaction information related to the ledgers for budget, expense, encumbrance, pre-encumbrance, and planned. An activity log of all of the journal entries that have been budgetchecked against that ChartField string. Attributes Attributes of that budget, such as budget status, commitment control option, and begin and end dates for the control budget. Not used. Forecasts The Budget Forecast Amounts page, where the forecasted amounts for the budget can be viewed. Journal Entry Reference Leadership and Talent Development, OHR

58 Budget Errors (cont.) LINE EXCEPTIONS TAB The GL Journal Exceptions Line Exceptions page is used to view individual journal lines in a journal with budget-checking errors or warning messages. Many of the fields on the Line Exceptions page are the same as the GL Journal Exceptions page. Only those that are different are described below. Field Name Line From and Line Thru Field Description A specific line within the Maximum Rows constraints. If the number of rows populating the Transactions Lines with Budget Exceptions grid is less than the number retrieved, the system will issue a message that more lines exist and either the lines can be increased or the <OK> button can be selected on the message to display the block of numbers that were originally selected 54 Leadership and Talent Development, OHR Journal Entry Reference

59 Budget Errors (cont.) TRANSACTION LINES WITH BUDGET EXCEPTIONS BOX Field Name Line ChartFields Field Description The budget ChartFields for each of the journal lines listed. Line Amount The amounts for each of the budget journal lines listed. Monetary Amount Total balanced amount from the Lines page. Journal Entry Reference Leadership and Talent Development, OHR

60 Reversing a Journal Entry Reversing journal entries are typically created at the end of a reporting period. A journal entry is processed to record an expense incurred or a revenue earned prior to an actual invoice being received or a customer s bill being created. This entry is then reversed during the next period, when the actual transaction is recorded (invoice is processed or bill is created) so that the transaction is not double-counted. A journal entry must be set up as a reversing journal at the time it is created or when it is updated. After it is posted, it cannot be set to reverse. Consider this example: It s July 5. The Spanish and Portuguese Studies Department purchased a computer. The computer arrived at the end of June, but the invoice had not arrived yet. Because they have received the computers in the current fiscal year, the expense should be recorded in the current year. However, since they had not received the invoice, the only way to record the expense in the current year is by entering a journal directly into the General Ledger. When the invoice is received and paid in the subsequent year, the expense is recorded again. To avoid double-counting this expense (once in each year), the journal entry entered at the end of the current year must be reversed in the next year. Most reversing journal entries are entered into an adjustment period during the year-end process. Before completing the journal entry reversal option, the entry must be marked as an Adjusting Entry and the appropriate adjusting period selected. Journals can be set to reverse on a variety of designated dates or at the beginning or end of an accounting period. Once a journal is marked as Reversing, a reversal date option must be selected. 56 Leadership and Talent Development, OHR Journal Entry Reference

61 Reversing a Journal Entry (cont.) JOURNAL ENTRY REVERSAL PAGE The Journal Entry Reversal page is accessed on the Header page through the link <Reversal: Do Not Generate Reversal>. See the section in this manual on completing the journal Header page for more details. Field Name Do Not Generate Reversal Beginning of Next Period End of Next Period Next Day Field Description Default. Used to not generate a reversal. Creates a reversing entry dated the first business day of the next regular accounting period (1 12). If the original entry is posted in an adjustment period, the reversal is then posted on the first date of the next regular period. Entry in period 913 will be reversed on July 1, the first day of period 1. Creates a reversing entry dated the last business day of the next regular accounting period (1 12). If the original entry is posted in an adjustment period, the reversal is posted on the last date of the next regular period. Entry in period 913 is reversed on July 31, the last day of period 1. Creates a reversing entry dated the next business day. The entry is posted in the regular accounting period in which the next day s date applies. Journal Entry Reference Leadership and Talent Development, OHR

62 Reversing a Journal Entry (cont.) Adjustment Period On Date Specified by User ADB Reversal Date Creates a reversing entry to a specific adjustment period. Enter the period in the Adjustment Period field, and enter the date of adjustment in the Reversal Date field. The reversal is posted on the date selected in the adjustment period selected (not periods 1 12). This is the only option available for posting reversals in adjustment periods. Creates a reversing entry on a specific date, entered in the Reversal Date field. The reversal is posted on the selected date and in the regular accounting period (1 12) to which the date belongs. None of the fields related to ADB are used. 58 Leadership and Talent Development, OHR Journal Entry Reference

63 Copying a Journal Entry Similar or identical journals may recur with some frequency. To avoid retyping the same information, an existing journal can be used as the basis for a new journal entry. Use the copy journal process for this. Navigate to: General Ledger > Journals > Journal Entry > Create/Update Journal Entries > Find an Existing Value. On the Lines tab, use the drop-down arrow in the *Process field to select the Copy Journal option, then click the yellow <Process> button. Once the <Process> button has been selected, the Journal Entry Copy page will load. Journal Date will auto-populate, but it can be changed. The copied journal entry can then be saved by clicking <OK>. The new journal entry will appear by line-item view and will have a unique journal ID number that was system-assigned. Journal Entry Reference Leadership and Talent Development, OHR

64 Copying a Journal Entry (cont.) Field Name Journal ID Journal Date ADB Date Currency Effective Date Reverse Signs Recalculate Budget Date Field Description Leave at default. System will assign journal ID once <OK> is clicked. Date of the new journal entry. The date cannot be changed once <OK> has been clicked. Not used. Not used. Reverses the signs of the original journal entry. The line that was debited in the original journal entry will be credited in the new journal entry, and the line that was credited in the original journal entry will be debited. Select when copying a journal from a previous fiscal year in order to use current fiscal year information. Save Journal Incomplete Reversal Date ADB Reversal Date Refer to the section on Creating a Journal Entry: Header Page for details about this checkbox. Refer to the section on Reversing a Journal Entry for details about this checkbox. Not used. 60 Leadership and Talent Development, OHR Journal Entry Reference

65 Standard journal entries (SJEs) are defined and created by central and departmental accounting staff who have the need to input recurring journals into the system for a certain length of time typically one year. There are three kinds of SJEs: recurring, template, and spread. Creating a Standard Journal Entry Recurring Template Spread Repetitive transactions that use the same accounting information and amounts. Examples of recurring transactions include monthly rent, automobile lease payments, and amortization expenses. Regular, periodic transactions that are charged to the same ChartField combinations using varying amounts. Examples of template-appropriate transactions include distribution of monthly copier-use charges and monthly telephone expenses. Journal entries can automatically be scheduled on predetermined dates using template SJEs. Transactions for which the entire cost is spread proportionately throughout the year. An example of this type of SJE is the expensing of a yearly insurance premium paid at the beginning of the year. On the following pages are the steps to take to create a standard journal entry. 1. Create a model journal entry. The first step is to create a template which the recurring standard journal entries will be based on. In this stage of the process, the justification, ChartFields, and amounts (except for template SJEs) are entered. 2. Define a standard journal using the model entry. The second step is to define the parameters of the recurring standard journal entries. In this stage of the process, the date range (e.g., from 3/1/2011 2/28/2012), the frequency (e.g., first day of every month), and the type (e.g., recurring, template, spread, or spread day) are selected. 3. Create a standard journal. The third step is when the actual standard journal entries are created based on the parameters and data indicated in the first two steps. 4. Review standard journals. The fourth step is to view the standard journals created in step 3, to ensure they were created. 5. Edit, approve, and post standard journals. The last step is to run an edit and budget check of the journals, submit them for approval, and post them via the nightly posting process. This step in the process is done the same way as a regular journal entry for each individually created standard journal entry. Refer to the section on Creating a Journal Entry for details on this. The journals will post to the period corresponding to the date of the SJEs as long as that accounting period is open. Journal Entry Reference Leadership and Talent Development, OHR

66 Creating a Standard Journal Entry (cont.) STEP 1: CREATING A MODEL SJE A model standard journal entry is used only for the creation of a standard journal entry. It does not need to be budget checked, approved, or sent for posting. The standard journal entry copies what was entered in the model SJE. The process for creating a model SJE is the same as for creating any other journal entry. The only difference is that Model must selected in the SJE Type field on the Header page. Lines Page Most fields are entered or appear the same way as in a regular journal entry. The Journal Status fields is the only exception. When a journal is edited, the status changes to M, where M stands for model. Model SJEs are not posted to the General Ledger and cannot be changed or deleted after executing the edit process. Recurring: Enter the model entry as it should actually appear each time it is recorded. For example, if the entry is to charge another unit for $500 of rent expense each month, the model SJE should be: Fund DeptID Program Account Amount Template: Enter the model entry the same way as a Recurring SJE. Amounts can be entered or left blank and filled in later during processing. 62 Leadership and Talent Development, OHR Journal Entry Reference

67 Creating a Standard Journal Entry (cont.) Spread: Enter the model journal entry as it should appear each time it is recorded with the total amount that is to be spread over the selected period. For example, if the entry is going to be used to expense a pre-paid insurance premium of $12,000 paid on 7/1, on a monthly basis throughout the fiscal year, the model SJE would be: Fund DeptID Program Account Amount , ,000 The actual journals posted will record $1,000 of this entry in each month during the fiscal year. Select Edit Journal to execute journal status check. There is no budget check for model SJEs. Model SJEs do not need to be approved as they are not posted. Journal Entry Reference Leadership and Talent Development, OHR

68 Creating a Standard Journal Entry (cont.) STEP 2: DEFINING A STANDARD JOURNAL ENTRY Add a New Value Page Navigate to: Home > General Ledger > Journals > Standard Journals > Define Standard Journals > Add a New Value tab. This is where the parameters are set for the standard journal entries. See previous pages for how to create model journal entries. Field Name Business Unit Standard Journal Field Description UMN01 is the only business unit used. (10 characters) The standard journal should have a name different from that of the model SJE, but it should be similar so that it also describes the journal. 64 Leadership and Talent Development, OHR Journal Entry Reference

69 Creating a Standard Journal Entry (cont.) Define Standard Journals Page Use this page to select the type (recurring, template, or spread) and frequency (daily, weekly, monthly, or user-defined) of standard journal entry. Field Name Unit SJE ID Description Seq Nbr Description SJE Type Field Description Always UMN01. (Standard Journal Entry Identification) Name given on the Add a New Value page. (30 characters) Description of the SJE. (Sequence Number) Displays the number of the SJE detail. (30 characters) Description of the specific journal in the sequence. Most SJEs will have only one SJE detail. The type of the SJE. Values are: Template. The General Ledger uses a template as a data-entry model for other journal entries. It can be automatically reproduced on a fixed schedule as with recurring SJEs, or it can be used on request. Examples of templates are monthly payments with different amounts, such as telephone and utilities. Recurring. Any entry that should be automatically recorded in its entirety according to a fixed schedule. These entries contain the same ChartField values and amounts, such as monthly rent, lease payments, and depreciation expenses. Journal Entry Reference Leadership and Talent Development, OHR

70 Creating a Standard Journal Entry (cont.) SJE Type (cont.) Status Error Msg Spread. The total amount is spread proportionately across all the periods. For example, suppose that a company charges a flat fee of $10,000 annually to perform a service. Use this journal entry type to divide that amount by 12, and create recurring entries for the same amount each month. Spread-Day. The total amount is spread across the months in proportion to the number of days in each month. For example, assume that a company charges a flat fee of $10,000 annually to perform a service. The amount charged for the expense each month corresponds to the product of the result of 10,000 divided by 365 times the number of days in the month. One of the following statuses is displayed: Active. When an SJE is first created, its status is Active. Error. This status indicates that an error occurred the last time the standard journal process attempted to process this SJE. The SJE continues to display a status of error until the next time the batch process is run after the problem causing it is fixed. Completed. All the standard journals for this SJE have been created. An SJE with this status may still be modified. To do this, reactivate the SJE and extend the range of dates or periods. Populates with an error message if the Status field was Error. Model Journal Section (specify the model journal used for the SJE) Journal ID Journal Date Status (10 characters) Journal ID of the model journal that will be the basis of the standard journal entry. Unless the SJE type is Spread, the journal selected here does not necessarily need to be an SJE model. (mm/dd/yyyy) The date of the creation of the model SJE. Some journal IDs may have multiple dates, but the majority will have only one date. Once the journal and date are selected, the model journal status appears. Model journals must conform to the following requirements: It must have a status of SJE Model if it is a spread SJE. It must have a status of SJE Model, Valid, or Posted if it is a template or recurring SJE. 66 Leadership and Talent Development, OHR Journal Entry Reference

71 Standard Journal Section (specify the standard journal) Creating a Standard Journal Entry (cont.) Journal Document Type Allow Lines to Be Modified Save Journal Incomplete Status Default value created based on SJE ID entered on the Add a New Value page. Takes up to the first nine characters and adds a number equal to the sequence number. This can be changed. Leave blank. Controls whether the standard journals can be modified before being posted using the Journal Entry page. Select this checkbox to allow the ChartFields and other fields of the standard journals to be modified. Save the journal created as incomplete. Create Standard Journals Section (specify the sequence of dates of the standard journals to be created) Schedule From Date and To Date If the SJE type specified is either Template or Recurring, the Schedule field appears. The Schedule field is used to select the frequency of the journals created daily, monthly on the first day of the month, or monthly on the last day of the month. (mm/dd/yyyy) The range of dates across which the SJEs should be created. From Year/Period and To Year/Period Journal Creation Lead Days (mm/dd/yyyy) If the SJE type specified is Spread or Spread-Day, this field appears. The date of the periods over which the journal amount should be spread. Enables the standard journal entries to be created in advance. Indicates the number of days in advance of the current date for the standard journals to be ready for creation. For example, the current date is 03/04/2011 and the date range entered in the From Date and To Date fields is 03/01/2011 to 02/28/2012 and monthly-01 is selected in the Schedule field. If the number 365 is entered, all journal entries dated the first of the month from 03/01/2011 to 365 days past the current date of 03/04/2011 will be created immediately once the process is run in Step 3. If the number 30 is entered, journal entries dated the first of the month from 03/01/2011 to 30 days past the current date of 03/04/2011 will be created immediately once the process is run in step 3. The first time the process is run on 03/04/2011 two journal Journal Entry Reference Leadership and Talent Development, OHR

72 Creating a Standard Journal Entry (cont.) entries will be created, one dated 03/01/2011 and the other one dated 04/01/2011. To run the rest of the journal entries, the process in Step 3 will need to be run at least every thirty days. If 0 is entered, only journal entries dated the first of the month from 03/01/2011 to the current date will be created immediately once the process is run in step 3. The first time the process is run on 03/04/2011 only one journal entry will be created dated 03/01/2011. For details on running the process to create the SJE refer to the next section, Step 3, Creating a Standard Journal Entry. Journal Day in Calendar Period This field appears if the SJE type selected is Spread or Spread-Day. Used to specify a journal date (in each period) for the standard journal. For example, enter 20 to have journals created on the twentieth of each month. 68 Leadership and Talent Development, OHR Journal Entry Reference

73 Creating a Standard Journal Entry (cont.) STEP 3: CREATING A STANDARD JOURNAL ENTRY Navigate to: Home > General Ledger > Journals > Standard Journals > Create Standard Journals > Add a New Value OR Find an Existing Value. This is where the actual SJEs are created based on the information selected in the first two steps. Run Control ID is an identifier that, when paired with the user ID, uniquely identifies the process that is being run. The run control ID defines parameters that are used when a process is run and allows the parameters to be saved for future uses. This ensures that when a process runs in the background, the system does not prompt the user for additional values. This process can be run by searching for an existing run control ID (go to the Find an Existing Value page) or by creating a new value (click the Add a New Value page). Creating a run control ID that is relevant to the process may help in remembering it for future uses. Field Name Run Control ID Field Description (30 characters) Create and enter a name that identifies the process. Journal Entry Reference Leadership and Talent Development, OHR

74 Creating a Standard Journal Entry (cont.) Create Standard Journal Request Page Use this page to specify the parameters needed to run the SJE batch process. Enter the necessary fields in the Process Request Parameters section, then save page, and click <Run>, which will navigate to the Process Schedule Request Page. Field Name Report Manager Process Monitor Run Process Frequency Unit From SJE and To SJE Description Delete Journals Recalculate Budget Date Field Description Reviews results of the SJE creation process. Verifies status and completion of SJE creation process. Runs the SJE creation process after all information on this page is completed and the run control has been saved. Specifies how often the process is executed each time the run control is used. Always. Process will run every time this run control ID is used, without any changes. Don t. Process will not run. Once. Process will run once. The next time the run control is opened/processed, this value defaults back to Don t. Always UMN01. (10 characters) Specifies which specific SJEs should be created. Values entered here are from the Standard Journal field on the Add a New Value page when defining a standard journal was done. (30 characters) A description of the request. Deletes any selected standard journals created, as long as the y have not been posted. Leave blank. 70 Leadership and Talent Development, OHR Journal Entry Reference

75 Creating a Standard Journal Entry (cont.) Process Schedule Request Page This page is accessed by clicking <Run> on the Create Standard Journal Request page. Use this page to enter or update parameters, such as server name and process output format. Field Name Server Name Run Date Recurrence Run Time Reset to Current Date/Time Time Zone Description Process Name Type Field Description Leave blank or select PSUNX from the server list. If blank, system will default to PSUNX. The date to run the process. To run the process immediately, set to current date (default value). The recurring time intervals for the process to run. For example, to run a process every weekday at 5:00 pm., select the predefined recurrence definition M F at 5:00 pm. The time to run the process. To run the process immediately, set to current time (default value). Resets the run date and time to the present date and time. Leave blank or select Central Standard Time (CST). Identifies the process. Identifies the name and type of the processes as it appears in the process definition. For this process, it is GL_SJE. The output type for this job or process. File. Writes the output to the file indicated in the Output Destination field. Journal Entry Reference Leadership and Talent Development, OHR

76 Creating a Standard Journal Entry (cont.) Web. Default. Sends all output of the process to the report repository, including log and trace files. The format of the report is specified by the format list. Status can be reviewed via the <Process Monitor> link on the Create Standard Journals Request page. Window. Sends the output to a new browser window. The status of the process now appears in the new browser window before the results are displayed. The different states can be Queued, Initiated, Processing, Success, Error, or Warning. All output for the process is also sent to the report repository, including log and trace files. The format of the report is specified by the format list. Format Distribution Output Destination The output format for this process. Available if Web or Window type is selected. Additional user IDs can be chosen to get others access to the process results. See the following section of this manual for details on this link. Appears when File is selected in the Type field. Enter the file path for the output. After clicking <OK> on the Process Scheduler Request page, the system returns to the Create Standard Journal Request page. A Process Instance number appears. This number identifies the process that has been started. 72 Leadership and Talent Development, OHR Journal Entry Reference

77 Creating a Standard Journal Entry (cont.) Process List Page Use to check to make sure the process has been completed successfully. This page is accessed from the <Process Monitor> link on the Create Standard Journal Request page. Success under the Run Status column and Posted under the Distribution Status column indicate that the process was run successfully. Field Name User ID Type Last Server Field Description View the processes submitted by a user ID. Usually, each preparer views their own user ID. Leave blank to view all the processes with authorization to view. View by a process type. Leave blank. Specify an interval of time by which to limit the process requests that appear in the list. Enter a custom numerical value in the field, and then select a unit type: days, hours, or minutes. Defaults to 1 Day. View processes that are run on a particular server. Leave blank or select PSUNX from the server list. If blank, system will default to PSUNX. Journal Entry Reference Leadership and Talent Development, OHR

78 Creating a Standard Journal Entry (cont.) Name Instance Run Status Distribution Status Save on Refresh Refresh View processes by a process name. Process type must first be selected before this field s value can be selected. Leave blank. Specify a range of instances by which to limit the process requests that appear in the list. To limit the view to a single request, enter the required instance ID in the first text field. View processes by status, such as Success or Error. Indicates final distribution of process. Posted indicates the process has run successfully and the results have been successfully created. Saves changes to filter criteria when <Refresh> is selected to view changes in status. Leave as selected. Checks the current run status of a submitted process. Continue clicking this button until the process is completed ( Error or Success ). If this process says Success, it means the requested standard journal entries have been created. Process List Section Instance Seq Process Type Process Name User Run Date/Time Run Status Displays the process instance; that is, the order in which the process appears in the queue. This number is automatically generated. Not applicable for SJEs. Displays the type of process. For SJEs, it is Application Engine. Displays the name of the process. For SJEs, it is always GL_SJE. Displays the user ID of the person who submitted the request. Displays the time and date when the process request was created. Indicates the status of the process. Values are: Blocked. The running of this process has been blocked. This indicates that this process is waiting for the number of active occurrences of this process to drop below the Max Concurrent value, a process recognized as mutually exclusive to complete, or a dependent file to be located. Cancel. Indicates that a user has requested to cancel the scheduling of a process request. 74 Leadership and Talent Development, OHR Journal Entry Reference

79 Creating a Standard Journal Entry (cont.) Run Status (cont.) Cancelled. Indicates that the server agent has successfully canceled the request after it has started. Error. Indicates that the program that is associated with the process request encountered an error while processing transactions within the program. In this case, delivered programs are coded to update the run status to Error before terminating. Hold. Indicates that a user has requested the scheduling of a process request be put on hold. Initiated. Indicates that the financial system process scheduler server has acknowledged the new request. At this time, the financial system process scheduler validates the parameters that are associated with this request, and submits the command line to start the process. No Success. Indicates that the program encountered an error within the transaction. No Success is different from Error because the process is marked as restartable. ( Application Engine is the only delivered process type that is restartable.) Pending. Status assigned to an item of a new PSJob request. This indicates that this item is waiting for a previous item in the job before the financial system process scheduler releases this item. When the previous item has completed successfully, the financial system process scheduler changes the status of item to Queued. Processing. Indicates the financial system process scheduler has successfully initiated the program. A status of Processing indicates that the program is running. Queued. Status assigned to a new process request. The process request remains queued until the financial system process scheduler server picks up the new request Restart. Indicates that a process that encountered an error is attempting to restart. Success. Indicates that the program has successfully completed. Warning. A warning status is available to use in a job definition. A job definition may continue or stop when a process encounters a warning. Journal Entry Reference Leadership and Talent Development, OHR

80 Creating a Standard Journal Entry (cont.) Distribution Status Displays the distribution status for each individual job and process. Values are: N/A None Generated Not Posted. Process has successfully completed, but results have not been created either because no actual results were created with the given process or an error occurred. Posting. Process has successfully completed and the results are in the process of being created. Posted. Process has successfully completed and the results have been created. Delete Processing. Results are being generated. 76 Leadership and Talent Development, OHR Journal Entry Reference

81 Creating a Standard Journal Entry (cont.) Distribution Detail Page This page is accessed via a link on the Process Schedule Request page. This page is used to give additional user IDs access to the process results. Field Name Folder Name Distribute To Field Description The folder in which the report results are posted. Folders organize report results into meaningful groups and can be viewed from the Report Manager. This option is available only when the output type on the Process Scheduler Request page for this process is Web or Window. The recipients of the process that will have access to review the process results. Select an ID type of User or Role, and the corresponding distribution ID. Journal Entry Reference Leadership and Talent Development, OHR

82 Creating a Standard Journal Entry (cont.) STEP 4: REVIEWING A STANDARD JOURNAL ENTRY Navigate to: Home > General Ledger > Journals > Standard Journals > Review Standard Journals. Use this page to view which SJEs have been created. At any time during the journal processing, the status of journals can be checked. Journals can be checked for whether they have been posted, have errors, or need additional editing. Journals cannot be accessed from this page. Journals can be viewed on the Define Standard Journals page. To view, update, execute the edit process, and submit a journal for approval, see the section in this manual on Creating a Journal Entry. 78 Leadership and Talent Development, OHR Journal Entry Reference

83 General Ledger WorkCenter The General Ledger WorkCenter provides links to pages within the General Ledger as well as links to transactions requiring action. The larger Work Area on the right side displays the work or process selected from the task panel on the left. Navigate to: Main Menu > General Ledger > General Ledger WorkCenter. Alternately, access the WorkCenter through the MyU portal. The My Work links can be expanded by minimizing the Links list. Alternately, the full list of links can be viewed by scrolling. Journal Entry Reference Leadership and Talent Development, OHR

84 General Ledger WorkCenter (cont.) Red text on a link indicates filters must be defined using the Edit Filter feature. In addition to the Main task panel tab that displays My Work and Links, the Reports/ Queries tab provides a series of links relevant to General Ledger. 80 Leadership and Talent Development, OHR Journal Entry Reference

85 Searching for and Viewing a Journal Entry After a journal entry has been created, it can be viewed and updated for a number of reasons: To inquire on the Journal Entry status such as whether it has been posted or approved. To complete the entry creation process that was started earlier either because there was no time or additional information was needed. This is when the Save Journal Incomplete Status is checked on the Header page when first creating the journal entry. To correct errors in a journal or in the budget status after it has been run through the nightly batch process. Errors could be related to debit and credit balances, ChartField combinations or budgets. Status and budget errors must be corrected before journal can be approved and posted. To edit the entry after it has been returned from the approver as denied. SEARCH FOR A JOURNAL ENTRY Navigate to: Home > General Ledger > Journal > Journal Entry > Create/Update Journal Entry > Find an Existing Value tab. Journal Entry Reference Leadership and Talent Development, OHR

86 Viewing a Journal Entry: Search Results Page The Search Results page lists all journal entries in the General Ledger (including those from other modules) based on search criteria entered on the Find an Existing Value page. Click any link in any of the columns to view a specific journal entry Header page. Click on the header of each column to sort the entries by that header. The first click will sort items in an ascending order; the second click will sort items in a descending order based on which column header was chosen. Field Name Business Unit Journal ID Journal Date Unpost Sequence Document Sequence Number Line Business Unit Journal Header Status Field Description UMN01 is the only business unit used. Alphanumeric or numeric ID automatically issued by the system. Date journal entry was created. Not used. Not used. Always UMN01. Status of the journal entry process. Posted. Journal entry has been posted to the appropriate ledgers. Valid. Journal entry has passed the edit process, and no header or line errors exist. Errors. Journal entry has been edited, but header and/or line errors exist. Incomplete. Journal entry was saved incomplete. On the Header page, the Save Journal Incomplete Status checkbox is selected. Edit Req d. Journal entry has not been edited. SJE Model. Journal entry was created as a model to be used for creating actual standard journal entries. This entry will not be posted. 82 Leadership and Talent Development, OHR Journal Entry Reference

87 Viewing a Journal Entry: Search Results Page (cont.) Budget Checking Header Status Ledger Group Source Journal Total Lines Journal Total Debits Journal Net Statistical Units Description Status of the budget checking process. Error. The journal entry failed to pass because a budget has not been set up. An expense budget needs to be set up for the ChartField string before the journal can be processed further. Not Chk d. The Budget Processor has not processed the journal entry. The journal entry has not been budget-checked. Valid. The entry passed budget-checking and the process updated the control budget ledger. If the entry causes the budget to be overspent, the entry will still be identified as Valid and will still be able to be posted. However, a warning sign will appear informing the preparer of the overspent budget. Name of the ledger group that the journal was/is intended to be posted to. Online journal entries are usually posted to the Actuals ledger group. For journals entered online in the General Ledger, the source will be either ONS (sponsored) or ONN (nonsponsored). Other source codes will be listed for subsystem or other General Ledger journal entries. Total number of lines in the journal entry. Total amount of debits in the journal entry. Not used. What was entered in the Long Description field when the journal entry was first created. Journal Entry Reference Leadership and Talent Development, OHR

88 Journal Entry Inquiries The journal inquiry feature enables review of a specific journal or multiple journals entered by a specific user and for a specific accounting period. Use this as part of your month-end process prior to period closing. Navigate to: General Ledger > Review Financial Information > Journals > Add a New Value tab. In the Inquiry Name area, type in the name of the inquiry, such as ADHOC3, and then click <Add>. Once the new inquiry has been created, it can be accessed for future reference from the Find an Existing Value page in the production instance. Inquiries run in the reporting instance will not be saved. The Journal Inquiry page will appear. All fields with an asterisk must be populated with data. Nonmandatory fields can be entered if it aids in the report inquiry. Once inquiry parameters have been set, click <Search>. The results will appear beneath the journal inquiry. Example: Run an inquiry for all journal entries for a certain period by a specific user. Field Name Inquiry Unit Field Description Name of inquiry entered on Add a New Value page. Always UMN Leadership and Talent Development, OHR Journal Entry Reference

89 Journal Entry Inquiries (cont.) Ledger Year From Period To Period Suspense Status Journal ID Date Status Source Currency Stat Document Type User Actuals. The fiscal year on which to run the inquiry. The beginning accounting period on which to run the inquiry. The ending accounting period on which to run the inquiry. Not used. Journal ID of journal entry. Date of journal entries. Journal edit status of journal entries. The original module in which the transactions were first entered. To pull up all journals in the General Ledger that were entered either automatically or manually, leave blank. Manually entered journal entries can only be pulled up based on whether they are sponsored or nonsponsored. To pull up journal entries with a Project value in one of their lines that was manually entered in the General Ledger, enter ONS. To pull up journal entries with no Project value in one of the lines that was manually entered in the General Ledger, enter ONN. To pull up all journal entries whose transactions were first entered into the Accounts Payable module, enter AP. Leave blank. It defaults to US Dollars. Used for journal entries using statistical accounts. Not used. Used to pull up journal entries by a preparer s user ID. Document Sequence Not used. Sort By Max Rows Journal entries can be sorted by Journal ID or Journal Date. The number of rows to return in one search. Journal Entry Reference Leadership and Talent Development, OHR

90 Journal Entry Inquiries (cont.) 86 Leadership and Talent Development, OHR Journal Entry Reference

91 General Ledger Inquiries The General Ledger application provides a series of inquiries that enable review of detail and summary ledger information based on selected ChartField combinations. These inquiries use several successive views enabling journal line detail access. Inquiries or reports on journal entries can be found on the Ledger Inquiry page: General Ledger > Review Financial Information > Ledger > Add a New Value. In the Inquiry Name area, type in the name of the inquiry, and then click <Add>. Once the new inquiry has been created, it can be accessed for future reference from the Find an Existing Value page in the production instance. Inquiries run in the reporting instance will not be saved. The Ledger Inquiry page will appear. All fields with an asterisk must be populated with data at a minimum. Nonmandatory fields can be completed if it aids in the report inquiry. Field Name Inquiry Name Field Description Name of inquiry. This defaults from the Add a New Value page. Journal Entry Reference Leadership and Talent Development, OHR

92 General Ledger Inquiries (cont.) Unit Ledger Fiscal Year From Period To Period Currency Stat Code Show YTD Balance Show Transaction Details Include Closing Adjustments Only in Base Currency Max Ledger Rows Value Always UMN01. The type of ledger from which to run the inquiry ( Actuals ). The fiscal year on which to run the inquiry. The beginning accounting period for the inquiry. The ending accounting period for the inquiry. Leave blank. Leave blank. Displays summarized activity from Period 1 to any given period. Must input 1 in the From Period field. Must select this checkbox or the Show Transaction Details checkbox. Displays all transaction detail for any given time period. Must select this checkbox or the Show YTD Balance checkbox. Do not select. Do not select. The number of rows to return in the search. Limits the data returned to the specific ChartField value entered. ChartField Value Set Leave blank. Update/New Sum By Value Required Order By Include Adjustment Periods Do not use. Allows data to be summarized by one or multiple fields. Select to see specific values displayed on the report. Becomes available to select once Sum By is selected. The order in which the Sum By fields are selected determines how the results are displayed. Do not use. 88 Leadership and Talent Development, OHR Journal Entry Reference

93 General Ledger Inquiries (cont.) Once the business unit and ledger field have been populated, the ChartField criteria box will appear below the initial Ledger Inquiry page. The ChartField criteria can be used as additional screening for the inquiry. Example: All cost share transactions for a given ChartField can be viewed for one to numerous accounting periods. Journal IDs contain 10 characters and may be a series of numbers, or letters and numbers. Below is a list of common journal ID prefixes and the modules from which they re entered. Prefix Description Module 000 Manual Journal Entries General Ledger ACC AP Accruals Accounts Payable ARD AR Direct Cash Journal Accounts Receivable BI BI Billing Billing CWS Work Study HRMS DPR Depreciation Expense Asset Management EAC Expense Accruals Travel and Expenses FBT Fringe Expense HRMS GFA F&A Calculation Grants HSA Salary / Fringe Adjustment HRMS PYN Gross to Net Company UMN HRMS EPY Expense Payments Journal Travel and Expenses PAY AP Payments Accounts Payable TR Treasury Journal Template Cash Management Journal Entry Reference Leadership and Talent Development, OHR

94 General Ledger Inquiries (cont.) The journal ID may be selected to display the Journal Inquiry Details page. It provides specific information on the selected transaction such as the user ID, journal status, and original date. Note: This does not show the entire journal, only the lines affecting the items in the search criteria. If the drill-to-source icon is displayed in the Journal Line section, click to see specific voucher IDs. 90 Leadership and Talent Development, OHR Journal Entry Reference

95 General Ledger Inquiries (cont.) Select a voucher ID to view the specifics of that voucher. Journal Entry Reference Leadership and Talent Development, OHR

96 General Ledger Activity Report The General Ledger Activity Report provides a review of specific transactions that have been entered in the General Ledger during a certain timeframe. This feature also creates a report that the user may print. Navigate to General Ledger > General Reports > Ledger Activity. In the Run Control ID field, type in the name of the report, such as GLREPORT1, and then click <Add>. Once the new report has been created, it can be accessed for future reference from the Find an Exisiting Value page in the production instance. Reports that are run in the reporting instance will not be saved. Field Name Language Unit Ledger Fiscal Year Currency Adjustment Period From Period To Period Show Discrepancies Only Field Description Leave as default of English. Always UMN01. Actuals. The fiscal year on which to run the report. Do not use. Do not use. The beginning accounting period on which to run the report. The ending accounting period on which to run the report. Do not select. 92 Leadership and Talent Development, OHR Journal Entry Reference

97 General Ledger Activity Report (cont.) Show Journal Detail Display Full Numeric Field Provides specific ChartField information on the report. Includes full ChartField values on the report. Clicking <Refresh> displays the ChartField selection area. This section allows the user to enter specific ChartField criteria to limit the report results. Journal Entry Reference Leadership and Talent Development, OHR

98 Journal Entry Queries Use queries to quickly locate specific journal entry information, and as part of your month-end process prior to period closing. Navigate to Reporting Tools > Query > Query Viewer. Search by query name to locate the desired query. Enter the query name and click <Search>. Once the query is located, select the HTML link of the query name. Enter the indicated information into the prompts and click <View Results>. Query results can be downloaded to Excel by selecting the <Excel Spreadsheet> link. A list of helpful queries follows. UM_FGL_CHARTFIELDS_DEPTID This query is run by DeptID and shows all General Ledger activity for that DeptID for a specific period of time. It provides Journal IDs along with the date, description and amount of each transaction. It also includes the status of each journal entry. 94 Leadership and Talent Development, OHR Journal Entry Reference

99 Journal Entry Queries (cont.) UM_FGL_CHARTFIELDS_PROGRAM This query is run by Program and shows all General Ledger activity for that Program for a specific period of time. It provides Journal IDs along with the date, description and amount of each transaction. It also includes the status of each journal entry. UM_FGL_CHARTFIELDS_PROJECT This query is run by Project and shows all General Ledger activity for that Project for a specific period of time. It provides Journal IDs along with the date, description and amount of each transaction. It also includes the status of each journal entry. Journal Entry Reference Leadership and Talent Development, OHR

100 Journal Entry Queries (cont.) UM_FGL_JRNL_BY_CLASS This query is run by journal class (DeptID) and identifies journal entries that have been created but are not yet posted. It enables users to determine why a journal entry has not posted. This is a great query to use for month-end cleanup. UM_FGL_JRNL_BY_X500 This query is run using the preparer s user ID. It enables users to monitor the journals they have entered and find out where journals are in the approval process. This is a great query to use for month-end cleanup. 96 Leadership and Talent Development, OHR Journal Entry Reference

101 Journal Entry Queries (cont.) UM_FGL_SINGLE_TRAN_DTL This query is run by journal ID and returns all voucher information for that specific ID. UM_FWF_APPR_BY_DEPTID This query is run by DeptID and shows the current approvers for that DeptID along with their approval role. Journal Entry Reference Leadership and Talent Development, OHR

102 Journal Entry Queries (cont.) UM_FWF_APPR_BY_X500 This query is run by x.500 and shows the DeptIDs for which that person is an approver along with their approval role. 98 Leadership and Talent Development, OHR Journal Entry Reference

103 These steps should be taken one week prior to period closing. Journal entries that are not posted before a period closes will not be able to be posted, even if approved. Once a period is closed, transactions for that period cannot be posted. PREPARERS Prior to Period Close Verify that all transactions entered by you have been approved. There are two tools you can use to search for journal entries that you created. After Period Close Journals that did not post must be cleaned up. If the transaction needs to be posted: If the transaction is not needed: Inquiry: General Ledger > Review Financial Information > Journals. A Valid status indicates: The journal entry was never submitted for approval OR The journal entry was submitted for approval but never approved OR The journal entry was approved after the period close Go to the Approvals tab to determine the issue. Query: UM_FGL_JRNL_BY_X500. A journal approval status of Not Submitted indicates the journal entry was never submitted for approval. Copy the journal entry (the default date is for the current open period). Edit the journal entry and submit it for approval. Delete the original journal from the closed period. Delete the journal entry. Month-End Cleanup Process Journal Entry Reference Leadership and Talent Development, OHR

104 Month-End Cleanup Process (cont.) APPROVERS Verify that all journal entries requiring your approval have been approved or denied. Use the UM_FGL_JRNL_BY_CLASS query to search for these journal entries. A journal approval status of Pending Approval indicates the journal entry is awaiting approval. A journal approval status of Not Submitted indicates the journal entry was never submitted for approval. Remember that some journal entries require two levels of approval. In that situation, one approver may have approved the journal entry while the other has not. If the journal entry shows that it has been approved by you but is still pending approval, that indicates a second level of approval is still required. Journal entries that are approved the morning of the period close will need to be posted manually by the approver because the automatic posting process is an overnight process. 100 Leadership and Talent Development, OHR Journal Entry Reference

105 Reporting JOURNAL ENTRY INQUIRY This inquiry is used to view specific journal entries entered either automatically from other modules or manually into the General Ledger. This inquiry allows users to filter by the source of the journal entries. It also allows users to drill down to the original entry. Refer to the section on Journal Entry Inquiries for further information about this. Navigate to: General Ledger > Review Financial Information > Journals. GENERAL LEDGER INQUIRY Used to view ledger information based on selected ChartField combinations. Navigate to: General Ledger > Review Financial Information > Ledger. JOURNAL ENTRY DETAIL REPORT Used to view all journal entries that were entered in the system for a ledger within a specific date range. Navigate to: General Ledger > General Reports > Journal Entry Detail. GENERAL LEDGER ACTIVITY REPORT This report lists the beginning and ending ledger balances by ChartField combination and account. It also lists the detailed journal line activity that is posted against the ledger for the accounting periods that are specified. Navigate to: General Ledger > General Reports > Ledger Activity. CARRY-FORWARD BALANCE DISPLAY PAGE This report displays the carryforward balance amount for accrual-based and cash-based balances, and displays the budgeted amounts. Navigate to: General Ledger > Review Financial Information > UM Carryforward Balance. LEDGER PERIOD COMPARISON QUERY Used to view a comparison by accounting period of ledger information by ChartField. Navigate to: General Ledger > Review Financial Information > Ledger Period Comparison. SUMMARY LEDGER DEFINITION REPORT Used to view information about summary ledgers, including a description, the detail ledger that it summarizes, record names, and a listing of the ChartFields that are associated with the ledger. Journal Entry Reference Leadership and Talent Development, OHR

106 Reporting (cont.) Navigate to: General Ledger > Summary Ledgers > Summary Ledger Definition Rpt. SUMMARY LEDGER DETAIL REPORT This is a template for designing reports based on user-specific ledger definitions. Navigate to: General Ledger > Summary Ledgers > Summary Ledger Detail Report. LEDGER VS JOURNAL INTEGRITY REPORT Used to check for any discrepancy between Ledger and Journal tables within a specified period range. Navigate to: General Ledger > General Reports > Ledger vs Journal Integrity. JOURNAL EDIT ERRORS REPORT Used to view detailed information about journal edit errors: period, journal ID, date, source, reference number, error type, line, line description, field name, and error message. Navigate to: General Ledger > Journals > Process Journals > Journal Edit Errors Report. 102 Leadership and Talent Development, OHR Journal Entry Reference

107 Appendix A: Debits and Credits Journal Entry Reference Leadership and Talent Development, OHR