Business Affairs Finance Certificate Program. ACT301 Journal Entries

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1 ACT301 Journal Entries Last Updated: January 2017

2 Topics Fund Accounting Revenues vs. Expenditures Electronic Journal Entries Useful Banner Forms Data integrity

3 Fund Accounting Fund Accounting entity with self balancing set of accounts Accountability Management of resources

4 Revenues and Expenditures Expenditures: Money paid for goods or services Account #s start with 9 Normal balance = DEBIT Debit INCREASES an Expenditure Credit DECREASES an Expenditure

5 Revenues and Expenditures Revenues: Money received from the sale of goods or services Account #s start with 1 Normal balance = CREDIT Credit INCREASES a Revenue Debit DECREASES a Revenue

6 Revenues and Expenditures Banner detail Screen (FGITRND) Does NOT show D or C indicator Must know what increases which account Expenditure + on detail screen = Debit (increases) - on detail screen = Credit (decreases) Revenue + on detail screen = Credit (increases) - on detail screen = Debit (decreases)

7 Electronic JE Feeds ALL JOURNAL ENTRIES MUST BE ELECTRONIC Excel feed template available on Controller s website Required Fields are: Explanation Fund Code Account Code Transaction Amount D/C Indicator Transaction Description Debits and Credits must balance Must have description detail Submit with proper backup documentation

8 Electronic JE Forms

9 Electronic JE Feeds Naming (Separate each by SPACE) Transaction Description Dollars (from feed total) Cents Preparer initials GiftinKind JRS Excel template as attachment to Send SIGNED (by Preparer and Budget Authority) hard copy with supporting documentation IMMEDIATELY following

10 Electronic JE Feeds Incorrect Journal Entries Preparer notified by or inter-office mail to make corrections and resubmit both copies (paper & electronic) Once hard copy approved by General Accounting the JE is processed BOTH copies ( and hard copy) must be received in the General Accounting department prior to the month end cut-off date to post in that month.

11 Expenditure Refund Journal Entry Examples Attach copy of FGITRND showing where actual charge is currently in Banner Must be two different people

12 Journal Entry Examples Move expenses to correct account code Attach copy of FGITRND showing where actual charge is currently in Banner Must be two different people

13 Journal Entry Common Mistakes Debits and Credits Reversed Expenditure ( 9xxxxx accounts) normal balance is Debit + on detail screen = Debit - on detail screen = Credit Revenue (1xxxxx accounts) normal balance is Credit + on detail screen = Credit - on detail screen = Debit Incorrect or Missing Signatures Budget Authority signature must be either 1, 2, or 3 Preparer and Budget Authority must be different people Must have Prepared By and Budget Authority Approval completed on journal entry

14 Journal Entry Common Mistakes Incorrect or Missing Back-Up Need Banner plus other documentation as back up to support journal entry Examples of Banner back up: FGITRND: Detailed transactions for selected Revenue and Expenditure Accounts Screen to use for re-classing expenses FGITBAL: General ledger trial balance Screen to use for showing available claim on cash

15 Journal Entry Common Mistakes Incorrect Transfer Journal Entries (accts: & ) No transfers can be done in General Funds For all 9xxxxx funds, you can only transfer to another 9xxxxx fund If using account number, must use as offset Budget Authority Approval must be from fund transferring the funds out Attach FGITBAL for account being debited as supporting documentation Journal Entries to budget accounts 9X0000 Journal entries can not be posted to budget pool accounts No actual activity can post to these accounts

16 Useful Banner Query Forms *See additional handout documentation for complete examples. FGIBDST Operating Ledger (Revenues and Expenditures) FGITRND Detailed transactions for selected Revenue and Expenditure Accounts FGITBAL Trial Balance (General Ledger/Assets and Liabilities) FGIGLAC Detailed transactions for selected Asset and Liability Accounts These forms provide backup documentation required for ALL journal entries

17 Data Integrity Striving for accuracy on all journal entries is a priority because They are a record of all the activities of each department. Other Agencies and managers rely on this data. Ensures efficient management of our financial resources. Every detail is important Account Description Backup documents

18 Reminders: 1. Following fields completed a) Explanation b) Fund Code c) Account Code d) Transaction Amount (debits = credits) e) D/C Indicator (D = Debit, C = Credit) f) Transaction Description 2. Attached Proper Supporting Documentation 3. Budget Authority Signature Summary 4. Send hard copy to General Accounting and electronic copy to financialaccounting@uncw.edu (send as attachment as an excel file)

19 Summary Department Contact Information General Accounting Hoggard Hall Room 149 Hollie Jernigan General Accounting Specialist Andrew Savage Staff Accountant Becky Heins General Accounting Manager