Transcript Financial Operations - Abilene Christian University

Financial Operations
New Journal Entry/Budget Adjustment Form
January 2009
Why a New Form?
• We had just gotten used to the old form, right?
• But…….
– The old form was easy to misinterpret
– Direction of the entry was often unclear
– Whether the preparer wanted to change actual
(historical) transactions versus the authorized budget
was often unclear
• So……..
– The new form attempts to remove some ambiguity in
what the preparer is trying to accomplish
When to Use the Form
• Actions that require the JE/BA form:
–
Reimbursing an operating fund out of a restricted fund (or transferring
money from a restricted fund to cover an expense incurred by an
operating fund)
–
Correcting an expense charged to an incorrect department/organization
–
Transfers in (8100 acct series) and transfers out (8200 acct series) among
two or more departments (interfund transfers)
–
Budget revisions among more than one department/fund/org
• Actions that do not require this form:
–
Reclassifying an expense from one account code in your own
department/organization to another account code within your own
department/organization (or, an intrafund transfer)
–
Budget revisions within your own department (intrafund budget revisions)
–
Allowable entry codes are JE20 and JE21
–
Allowable expense codes are 6000-7999
Journal Entry or
Budget Adjustment?
• Journal Entries Affect Actual (Historical) Transactions
– Historical transactions appear in the YTD Activity column on
Banner screen FGIBDSR
– Use a JE to reclassify a transaction that has already occurred from
one department or account to another
– Use a JE to reimburse one department from another or to make a
transfer of funds from one department to another
• Budget Adjustments Affect Departmental Budgets Only
– Departmental Budgets appear in the Adjusted Budget column on
Banner screen FGIBDSR (the authorized level of spending)
– A Budget Adjustment (BA) revises the Adjusted Budget for your
department
Debits and Credits
• Don’t Be Afraid of These Accounting Terms
• Use the guidelines in the Debit and Credit columns on
the form (think of increases and decreases):
– To increase the balance of an expense account, post
a debit entry; to decrease the balance of an expense
account, post a credit entry
– To decrease the balance of a revenue account, post
a debit entry; to increase the balance of a revenue
account, post a credit entry
• The total of the debits and credits should always equal.
Debits and Credits, continued
• Sometimes you may need to adjust an Asset or Liability
account:
– To increase the balance of an asset account, post a
debit entry; to decrease the balance of an asset
account, post a credit entry
– To increase the balance of a liability account, post a
credit entry; to decrease the balance of a liability
account, post a debit entry
• The total of the debits and credits should always equal.
Description and Supporting
Documentation
• Please provide a description for your entry in the space
provided
• Clarify what you intend to accomplish with the entry
(e.g. reclass expense for Willie Wildcat’s laptop bought
on 9/6/08 from Student Life to Athletics; reimburse
Student Life for materials purchased for Sing Song; etc.)
• Add any information that helps support values
(e.g. 1,000 copies x $.05 per copy = $50)
• Sometimes, it helps to have detailed support for the
values in the entry – attach a spreadsheet or other
support for entries with high-values or numerous items
Approval Signatures
• The preparer’s name should appear below the
description, along with date and phone extension
• Some departments require an approval signature by a
department head or other supervisor; however, a
departmental approval signature is not required for the
form to be processed by Financial Operations
• Financial Operations will sign the form to approve the
form for posting (if the entry makes sense)
• Indicate whether you would like a copy of the signed
entry returned to you by including the preparer’s box
number
Journal Entry Guidelines
• Refer to the Account Code Overview presentation for a
detailed list of guidelines on making journal entries
• Below are a few basic guidelines:
– All FOAP Information is Required
– Transfers between departments or funds should
(generally) use the same account code for each
FOAP, except when using transfer out (8205) for one
fund and transfer in (8105) for another fund.
– Please indicate whether you want to complete a
journal entry (JE) or budget adjustment (BA)
– Use the dates at the top of the form to indicate a
specific period (month and/or fiscal year) in which
the entry should post, if necessary
Questions and Comments
• Contact Katie Longley (ext. 2535) or Greg Wilson
(ext. 4975) for help with the new form