Journal Entry Training Presentation

Report
Journal Entry
Guidelines
General Accounting
Financial & Accounting Services
May 08, 2013
Purpose
Purpose:
To provide guidance to the campus community on
the steps necessary to prepare, support, approve,
and submit the entries.
2
Agenda
•
Introduction
•
C-FOAPAL
•
Journal Entry Form
•
Supporting Documentation
•
Approvals
•
Submission to FAS
•
Deadlines
•
Questions
• Additional Information
3
Introduction
Journal entries are used to record financial transactions into the general ledger.
Transactions are summarized to create the financial statements for WFU.
Types of journals entries:
 Standard
 Recurring
 Reversal
 Correction
 Allocation
 Transfer
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Introduction
Most common types of manual journal entries:
 Corrections - Used to correct amounts and/or reclassify errors.
- Amount posted to GL $132.25. Correct amount $123.25.
- Reclass from Supplies (53010) to Housekeeping Supplies (53018).
 Transfers – Move available funds from one fund/org to another.
- Physics gives funds to Chemistry to co-sponsor guest speaker.
 Allocations - Services provided by one department to another department.
- Copy Center allocates charges to departments.
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C-FOAPAL
C-FOAPAL is the acronym representing each element of the
chart of accounts.
C = CHART CODE
F = FUND CODE
O = ORGANIZATION CODE
A = ACCOUNT CODE
P = PROGRAM CODE
A = ACTIVITY CODE (OPTIONAL)
L = LOCATION CODE (OPTIONAL)
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C-FOAPAL
Optional
Required*
Chart
Fund
Org
Account Program
Activity
Location
Chart Code
• One character (alpha).
• WFU has four charts to organize financial information.
- Chart R – Reynolda Campus
- Chart H - Reynolda House Museum of American Art
- Chart F – WFU Development Foundation (Where gifts of real property are held until sold)
- Chart X – WFU Foundation (Transactions related to property on and in the vicinity of Deacon Boulevard)
• Each entity has its own tax ID number.
• Individual entities also needed for separate internal and external financial reporting.
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C-FOAPAL
Optional
Required*
Chart
Fund
Org
Account Program
Activity
Location
Fund Code
• 6 characters (alpha-numeric).
• The source of the funding. “Where” the money is coming from.
Grants
Tuition and Fees
Gifts
Investment
Income
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C-FOAPAL
Optional
Required*
Chart
Fund
Org
Account Program
Activity
Location
Examples:
Fund
Description
111111
Unrestricted
PXXXXX
Plant Fund
RGXXXX
Grants
ERXXXX
Endowment Restricted
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C-FOAPAL
Optional
Required*
Chart
Fund
Org
Account Program
Activity
Location
Organization Code
• 6 characters (numeric).
• Designates a department or a unit of budgetary responsibility.
“Who” pays the expenses or receives the revenue of a transaction.
Org
Description
112201
Human Resources
500005
Provost’s Office
703001
Athletics: Football
713002
Stores: Deacon Shop
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C-FOAPAL
Optional
Required*
Chart
Fund
Org
Account Program
Activity
Location
Account Code
• 5 characters (numeric). “What” type of transaction.
Classification
Account
Range
Account
Example
Account Description
Example
Asset
1XXXX
10010
Cash Deposits
Liability
2XXXX
20010
A/P - Trade
Revenue
4XXXX
40010
Tuition
Expense
5XXXX
53010
Supplies
Allocation
7XXXX
70011
Allocation General
Transfer
9XXXX
98010
Trsfr in from Dept/Rest Funds
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C-FOAPAL
Optional
Required*
Chart
Fund
Org
Account Program
Activity
Location
Program Code
• 2 characters (numeric).
• Not included on journal entry form. Located in Banner tables
maintained by FAS.
• Used by FAS for required external reporting. Identifies the
“purpose” or “function” of revenue and expenditures.
• The following are examples of the functional classifications:
Instruction (10), Academic Support (25), Student Services (35)
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C-FOAPAL
Optional
Required*
Chart
Fund
Org
Account Program
Activity
Location
Activity Code
• 6 characters (alpha-numeric).
• Optional FOAPAL element typically used to track revenue and
expenses for a special program or event.
• Can be used with multiple orgs or set up to be used with only one.
Activity Code
Description
U00011
Commencement
U00888
Facilities and Campus
U01103
WFDD Membership
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C-FOAPAL
Optional
Required*
Chart
Fund
Org
Account Program
Activity
Location
Location Code
• 6 characters (alpha-numeric).
• Optional FOAPAL element primarily used with fixed assets to identify
physical places or sites, such as buildings and room numbers.
• Used by facilities when projects cover multiple rooms in a building to
segregate costs by room.
Location Code
L00176
Description
Deacon Tower
1N107A
FAS Office Reynolda 1st Fl-107A
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Journal Entry Form
Website: http://finance.wfu.edu/faculty-staff/financial-reporting
15
Journal Entry Form
Journal Entry Template
16
Journal Entry Form
Example Journal Entry
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Journal Entry Form
• Hash Total – Total debits plus total credits (formula).
Used by FAS when keying journal entries.
• Preparer – Print name, signature, phone ext., and date.
• Approver - Print name, signature, and date.
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Journal Entry Form
•
Sequence No. – General Accounting uses sequence numbers when keying
entries into Banner. If possible, do not skip lines when completing form or
include lines with FOAPAL elements and zero amounts.
•
FOAPAL (highlighted in orange) – Refer back to previous section on C-FOAPAL.
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Journal Entry Form
•
Debit/Credit
•
•
•
•
•
Debits increase asset and expenses. Decrease liabilities and revenue.
Credits increase liabilities and revenue. Decrease assets and expenses.
Debits must equal credits.
Enter debits and credits as positive numbers not negative numbers.
Round 2 decimals ($1.334 = $1.33). Rounding formula: =round(A1,2)
Line Description – Maximum 35 characters (character count formula after
description). Should provide enough information for users to understand
purpose.
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Supporting Documentation
• All journal entries must be adequately supported by attached
documentation that explains the purpose and supports the amount of
the journal entry.
• Documentation may be in the form of a Cognos report , receipt,
invoice, email, or some other record of the transaction.
• Do not include sales tax.
• If JE amount is a portion of invoice amount, show how amount was
calculated.
Note: Make sure supporting documentation is sufficient when sending
JE form to FAS since it is required by auditors.
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Approvals
FAS will be reviewing approvals on all entries to determine if
satisfactory authority has been established before recording the
entry. If an approval is in question, FAS will contact the preparer to
gather more information.
In order to prevent delays in the processing of your entries, please
make sure that your entries have sufficient approvals prior to
submission.
Examples of sufficient approvals include but are not limited to:
• Preparer's Supervisor
• Preparer's departmental Budget Officer
• Preparer's Department Head
22
Submission To FAS
• Journal entries must be approved prior to submission to
Financial & Accounting Services (FAS).
• All journal entries should be sent to FAS located at
University Corporate Center (UCC), attention to Ruth
Smith.
23
Deadlines
• Journal entries must be received by Financial &
Accounting Services by 5:00 PM on the 2nd business day
of the new month.
• All journal entries received after this deadline will only be
processed if time permits.
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Questions
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Additional Information
For more information about Journal Entries, as well as,
other useful tools, please visit the Financial Reporting website.
Website: http://finance.wfu.edu/faculty-staff/financial-reporting
General Accounting Contact List:
Name
Title
Phone
Email
Jennifer Killingsworth
Manager, General Accounting
ext. 4088
[email protected]
Terri Tyson
Accountant, General Accounting
ext. 3205
[email protected]
Ruth Smith
Senior. Accounting Coordinator
ext. 5977
[email protected]
Freddy Acuna
Accounting Coordinator
ext. 5186
[email protected]
Kathryn Hackworth
Accountant, Fixed Assets
ext. 4096
[email protected]
Jessica Gorrell
Accountant, Plant Funds
ext. 6408
[email protected]
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