The Web journal entry application has four distinct types of entries, each established for specific purposes as outlined below. This policy provides guidance on when to use or not use each type. For help on using the application, contact Accounting Services.
Division fiscal officers authorize individuals to access the Web journal entry by request to Accounting Services.
There are four types of entries:
- Internal Service Entry (ISE)
- Use the ISE when one University department provides goods or services to another University department.
- Only the department providing the service should prepare this entry.
- Normally, the credit is to 450000 for internal sales & services.
- Do not use a JE to record these transactions. The JE should be used only for accounting transactions (see below).
- Correcting Entry (CE)
- The CE is only for non-payroll transactions. For payroll correcting entries see PCE section below.
- The CE is designed to provide an audit trail to the original entries. For most transactions, you can record electronic links in the CE to those transactions for easy reference. Use the "Other" reference when there is no electronic link, to reference a line number within a journal, or when there are too many transactions to link to. Include a short description in the Other Reference Type, such as March 03 entries or May 31 balances.
- You may use the CE when you have an original electronic transaction to link to, even if the entry might not be considered a "correction."
- Use the CE to correct or revise ChartFields credited or charged for previous revenue or expense non-payroll transaction(s) in the current fiscal year.
- Use the CE to change ChartFields when it was not practical or feasible to use the correct ChartFields on the original voucher, Cash Receipt Report, ISE, CE, JE or other transaction, including one from a feeder.
- Do not use a CE to correct a budget checking (BCM) error. To correct the original journal, contact Accounting Services.
- All CE's should be made within two accounting periods (months) after the end of the accounting period in which the original transaction posted.
- Payroll Correcting Entry (PCE)
- Use the PCE when you need to move a specific prior payroll transaction from one set of ChartFields to another.
- Use a PAF to change ChartFields for future transactions.
- The PCE is designed to provide an audit trail by recording information about the original entry.
- The PCE automatically calculates the corresponding correction for the staff benefits for the salary and wage accounts used in the PCE. If the amount of staff benefits needs to be corrected or changed contact Accounting Services.
- Do not use PCE to correct a BCM error involving payroll. You must first add budget to allow the incorrect payroll to pass and then you can use a PCE to move the expense.
- All PCEï¿½s should be made within two accounting periods (months) after the end of the accounting period in which the original transaction posted. See UM BPM-213 for instructions on requesting entries after the timeframe described above.
- Journal Entry (JE)
- Use the JE to record original accounting transactions, such as:
- Funding or balance transfers/distributions
- Investment income
- Indirect cost adjustments on grants
- Balance sheet entries such as accruing/deferring revenue/expense or recording/adjusting inventory, etc.
- Do not use the JE to record internal revenue or to correct other transactions. For those, use the ISE, CE or PCE, as appropriate.
The preparer is responsible for providing clear and complete explanation/documentation of the reason for the entry such that a third party can understand why the entry was made. The preparer should use preparer comments and, as needed, other comments and attachments. Additional explanation/documentation can be placed in attachments.
As needed, preparers should notify approvers when there is an entry for them to review. Approvers should periodically check for unapproved entries, either through the JE application or as part of their review of transactions in Web reporting. Divisions should have procedures to ensure that transactions on their accounts are approved on a timely basis.