HEALTH SYSTEM INTERFUND JOURNAL ENTRY EXAMPLES



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Page 1 of 9 MICROLOAN RULES AND REGULATIONS

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Journal Entry (JE) Type Scenario JE Instructions (UPHS/Center 21) JE Instructions (CPUP Departments) 1. Services Provided and Expense/Revenue Sharing When services are provided to a University Department or sharing costs with UPHS, a revenue or expense object code will be affected depending on the transaction. Credit/Debit: credit expense/debit revenue Debit/Credit: 210-21xx-1-000000- 15xx-0000-0000 Enter Lawson-COA account in the Context Box using Category #17 Credit/Debit: credit expense/debit revenue For PSOM, debit/credit the appropriate 400-4xxx-2-014003-15xx-3407-xxxx account For SDM, debit/credit the appropriate 510-5194-2-000000-15xx-3410-xxxx account Enter Lawson-COA account information in the Context Box

2. Manual Payroll Allocations Because UPHS Center 21 and the University use separate payroll systems, University payroll allocations to UPHS uses Interfund journal entries to allocate these expenses. (this does not apply to CPUP) Credit: the appropriate University account to reduce University payroll expense Use Object Code 5140 to reduce University expense for UPHS salaries and wages Do not use BEN Financials Manual Journals for CPUP reallocations since CPUP uses the PennWorks/payroll system Use the PennWorks/Payroll Reallocation function to reallocate CPUP payroll Use Object Code 5192 to reduce University employee benefit expense Debit : 210-21xx-1-000000-1520-0000-0000 to charge payroll and benefit expense to UPHS Enter pay period and Lawson-COA account information in the Context Box

3a. Interfund Non-grant Adjustments When making an adjustment to an existing UPHS Center 21 or CPUP account, follow the same process as for any other adjustment in BEN Financials using a manual journal Credit/debit: the appropriate Univ. account to be adjusted. Credit/debit: the appropriate offsetting 15xx Due to/from account Use Category 02 Adj Prev Tx Enter Lawson-COA account information in the Context Box for UPHS Center 21 transactions. Credit/debit: the appropriate Univ. account to be adjusted. Credit/debit: the appropriate offsetting 15xx CPUP Due to/from account Use Category 02 Adj Prev Tx Enter Lawson-COA account information in the Context Box for CPUP transactions as well..

3b. Interfund Grant Adjustments When correcting a grant/contract BEN Financials entry for an existing UPHS Center 21 or CPUP account, follow the same process as for any other grant adjustment in BEN Financials using a manual journal To be acceptable, cost transfers must meet the following criteria: 1.Must occur in a timely manner LESS THAN 90 DAYS For grant adjustments less than 90 days old, use Category 15 Reference previous transaction s BEN batch name in Context Box Debit/credit: the appropriate Univ grant revenue or expense account Credit/debit: the appropriate offsetting UPHS Center 21 15xx acct SAME INSTRUCTIONS APPLY FOR CPUP 2.The BEN batch name of the transaction being corrected must be referenced in the Context Box when using categories 15 & 16 3.Are allowable under Sponsor and University Policies 4.Adequately describe the purpose of the entry,

including a detailed explanation of the reason for the entry OVER 90 DAYS For grant adjustments more than 90 days old, use Category 16 Note: Explanations such as to correct an error or to transfer to correct project are not acceptable See Financial Policy #2113 for more information NOTE: If you make Grant adjustments using Interfund accounts, you must also complete the Grant and Contract Cost Transfer training course. Reference previous transaction s BEN batch name in Context Box. Debit/credit: the appropriate Univ grant revenue or expense account Credit/debit: the appropriate offsetting UPHS Center 21 15xx acct Also enter the Lawson-COA account information in the Context Box for all transactions

4a. UPHS Operating Transfers (4823) UPHS Operating transfers transfer of nonspecific/general resources between the University and UPHS Examples: 1.General operating support from UPHS to PSOM 2.The interest portion of a debt obligation 3.The transfer of Academic Development fund expenses NOTE: Do not use Object Codes 4820 Resource Transfers In and 4825 Resource Transfers Out as these are used for resource transfers within the University Oper. Resource transfers to UPHS Debit: University account charged, using: Object Code 4823 Credit: 21x-21xx-1-000000-15xx- 0000-0000 In Category 17 in the context box Enter the 6-digit Lawson number and the five digit UPHS COA Oper Resource transfers from UPHS Credit: the Univ. acct. to receive the resources, using Object code 4823 Debit: 21x-2100-1-000000-15xx- 0000-0000 In Category 17 in the context box Enter the 6-digit Lawson number and the five digit UPHS COA Oper. Resource transfers to CPUP Debit: the University account to be charged, using: Object Code 4823 Credit: 400-4xxx-2-014003-152x-3407-0000 Use the appropriate 4xxx ORG Code and 15xx Object Code which should receive the resources No context box required for CPUP accts. Oper. Resource transfers from CPUP Credit: the University account to receive the resources, using: Object Code 4823 Operating transfers Debit: 400-4xxx-2-014003-152x-3407-0000 Use the appropriate 4xxx CPUP ORG Code and 15xx Object Code which should receive the resources Use the appropriate 15xx Object Code which should be charged for the transfe The context box at the end of each journal line is not required for CPUP Operating and Non-operating transfers

4b. UPHS Non- Operating Transfers (4824) UPHS Non-Operating transfers are transfers of resources between UPHS and the University that occur as a result of capital transactions and/or endowment activity. Examples: 1.Capital renovations 2.The principal portion of a debt service 3.Endowment transfers 4.CPUP fund balance transfers Non-Op Resource transfers to UPHS Debit: the University account to be charged, using: Object Code 4824 Non- Operating transfers Credit: 21x-21xx-1-000000-15xx- 0000-0000 Use the appropriate 15xx Object Code which should be credited with the revenue The context box at the end of each journal line must be completed and will default to 17 UPHS Gds/Svcs Non-Op Resource transfers to CPUP Debit: the University account to be charged, using: Object Code 4824 Non-Operating transfers Credit:400-4xxx-2-014003-152x-3407-0000 Use the appropriate 4xxx ORG Code and 15xx Object Code which should receive the resources The context box at the end of each journal line is not required for CPUP Operating NOTE: Use Object Code 4824 inter-entity Equity Transfer Non-Operating and offset with the appropriate 15xx entry Enter the six-digit Lawson number and the five digit UPHS COA

Non-Op Resource transfers from UPHS Credit: the University account to receive the resources, using: Object Code 4824 Non-Operating transfers Debit: 21x-2100-1-000000-15xx- 0000-0000 Use the appropriate 15xx Object Code which should be charged for the transfer The context box at the end of each journal line must be completed and will default to 17 UPHS Gds/Svcs Non-Op Resource transfers from CPUP Credit: the University account to receive the resources, using: Object Code 4824 Non- Operating transfers Debit: 400-4xxx-2-014003-152x-3407-0000 Use the appropriate 4xxx CPUP ORG Code and 15xx Object Code which should receive the resources The context box at the end of each journal line is not required for CPUP Operating and Non-operating transfers Enter the six-digit Lawson number and the five digit UPHS COA

5. Transfer Resources to Reimburse Grant Related Equipment Purchases There are times when UPHS must acquire research equipment using a University grant fund. Since UPHS does not administer grant funds, a specific two-step process must be used to: 1.Record the charge to the grant. Step #1: Transfer funds from the grant to the 000000 fund Debit: Object Code 5243 Non Penn- Capital Equipment-Federal Title in the grant fund Credit: Object Code 5243 Non Penn-Capital Equipment Federal Title in the 000000 fund SAME INSTRUCTIONS APPLY FOR CPUP 2.Record the revenue/receivable from the sponsor Note: Since UPHS will own the equipment do not use Object Codes 1870, 1871, or 1872 Step #2: Transfer funds to UPHS Debit: Object Code 4824 in the 000000 fund Credit: Object Code 1520 to 5243 was made in Step #1 Note: After both entries are completed, the University will report a 4824 resource transfer and an inter-entity liability to UPHS

6. Journals to the CHOP Health Affiliates (125X) The CHOP Health Affiliates are charged expenses by University Depts. for expenses incurred by Univ employees that have provided goods and/or services for these CHOP Depts. Debit: the CHOP Dept. to be charged, using: Object Code 1250 Credit: University Depts. Acct # Debit: the CHOP Depts. to be charged, using: Object Code 1250 Credit: University Depts. Acct #