Journals - Processing Manual Journal Entries

Scope

This procedure covers entering journal transactions for posting to the general ledger. It includes making journal entries from manually prepared journal entries, including automatically reversed entries.

This procedure does not cover the actual preparation of journal entries.

This procedure does not cover the creation of automatic journal entries.

System References

Journals - Creating [NAV3000Z]

Policy

A standard journal entry is used to record and summarize routine transactions posted to the general ledger.

A deposit journal entry must include the date the bank records the deposit in the journal header Description field and the Deposit Control Number from the bank deposit receipt in the Description fields of the Debit and Credit lines.

Closed period adjustments are not performed.

Responsibility

The GL Specialist is responsible for

entering journal entry transactions into General Ledger.
approving all journal entries
ensuring that all journal entries to the general ledger reflect Generally Accepted Accounting Practices (GAAP) and University financial policy.

The GL Accounting Manager is responsible for

ensuring that all journal entries are complete
ensuring that a record of all journal entries to the general ledger is maintained

Distribution

Director of Accounting Services

GL Accountant

GL Accounting Manager

GL Administrator

GL Specialist

Ownership

The Director of Accounting Services is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

This activity is performed whenever a GL Specialist with appropriate authority receives a journal entry from another GL user for approval.

This activity assumes that some journal transactions are posted automatically or routinely to the general ledger from Accounts Payable, Accounts Receivable, Inventory, Grants Management, and ISIS. After the general ledger is closed, balance sheet accounts are reconciled and any adjustments for reconciling items are posted.

The Month End Close page shows IS past month end closes.

The ITS Systems Status closing data.

The job title Approver refers to any of the following:

GL Specialist
GL Accountant
GL Accounting Manager
GL Administrator

The job title Preparer refers to one of the following:

GL Specialist
GL Accountant

Preparer

1. Verify that the journal entry is complete and correct.

The journal entry should conform to Generally Accepted Accounting Practices (GAAP) and University financial policy.

It should be complete in both a narrow and broad sense. All appropriate fields should be filled in with proper documentation attached. The journal entry's data should accurately and completely fulfill its purpose.

Verify the following journal elements:

The correct naming convention is used.
see Journals - Naming Convention [REF3002U].
The posting date and fiscal period are correct
The correct category has been chosen
Required entries for deposit journals are present

category is Receipts
bank deposit date is in journal header's Description field
deposit control number is in Description field of debit and credit line

No errors in account references or account transactions have been made
The debit and credit totals have been entered
Control totals are entered at the journal (not batch) level
The appropriate documentation is attached or filed

IMPORTANT: Deposit journals REQUIRE specific information in the Description fields of the journal header, debit , and credit lines to insure proper reconciliation with Cash Management. Since the Description fields are not validated by the system users must remember to include the required information.

2. Update the journal entry.

3. Forward the journal entry to the appropriate approver.

Approver

4. Verify that the journal entry is correct.

Appropriate accounts are affected.
The magnitude of individual account and journal entry transactions is reasonable.
The impact of the transactions on departments, balance sheet, and income statement is reasonable.
Journal naming convention is followed
Control totals are entered at the journal (not batch) level
Deposit journals include date of deposit in the journal header's Description field and Deposit Control Number in the Description fields of the Debit and Credit lines.

5. Journals requiring correction should be rejected and returned to the Preparer with clear, concise notes on what is wrong in the journal. Notes may be included in the Comments section of the Approver form.

Refer to Journals - Creating [NAV3000Z]

If an update by the Preparer is required, goto task #2. Otherwise, goto task #6.

6. Approve the journal entry.

7. The journal will be held in the system for posting during the evening. A GL Accountant or GL Accounting Manager will review journals waiting to be posted and may or may not take other actions with the journals depending on internally established criteria.

GL Accountant

8. Verify that the journal entries have been entered correctly and that they are in the correct accounting period.

9. Reject incorrectly prepared journal entries with clear, concise notes on problems in the Approver's comments field.

10. Notify the GL Accounting Manager of questionable manual journal entries.

GL Accounting Manager

11. Review questionable or problematic manual journal entries and determine what action(s) need to be taken.

End of activity.