Georgia Institute of Technology Standard Journal Entry Procedure OVERVIEW This procedure is designed to help campus users determine when to submit the Standard Journal Entry Form to the Controller’s Office for processing and how to complete the form. GENERAL GUIDELINES The Standard Journal Entry Form should be used as a transmittal sheet for journal entries forwarded to The Controller’s Office for processing. Journal entries should include relevant back up documentation to support the transaction being processed. This documentation must be legible and comprehensible so that an auditor could gain a thorough understanding of the transaction based on the supporting documentation. A determination of when a journal entry should be used is the first step made by the campus unit. The Controller’s Office is responsible for processing journal entries for prior budget period expenses and entries that adjust balance sheet accounts (1xxxxx - 3xxxxx) and revenue accounts (4xxxxx). They are also responsible for processing any journal entries for campus units who do not have online journal entry access. Campus Service Units (CSU) process journal entries for departmental sales and service revenue and expense transactions that occur between campus units. Other campus units process journal entries to adjust nonpersonal services expenses (accounts 6xxxxx – 8xxxxx) for the current budget period using the online Electronic Cost Transfer (ECT) application. The Salary Planning & Distribution application must be used to redistribute salary and fringe expenses (accounts like 5xxxxx). To register for on-line access to the ECT journal entry page or the SPD Redistributions page, please refer to the following web site: http://www.trainsweb.gatech.edu. NOTE: All adjustments to expenses on sponsored projects must be submitted to Grants and Contracts Accounting using a Cost Transfer Request Form. All adjustments to expenses on a Georgia Tech Foundation (GTF) projects must be submitted to the Controller’s Office using a Cost Transfer Request Form (http://www.grants.gatech.edu/standard-forms). Please refer to the Cost Transfer Requests Policy in the Institute’s Policy Library for additional information: http://www.policylibrary.gatech.edu/businessfinance/cost-transfer-requests. As a simple rule of thumb, if either of the project ID’s involved in the transaction is a sponsored project or a GTF project, the Cost Transfer Request Form is required to be completed. If a journal entry is to be processed by the Controller’s Office, the Standard Journal Entry Form must be completed by the campus unit and submitted to the Controller’s Office. This form can be printed on the Controller’s Office website: http://www.controller.gatech.edu/forms. When completing the Standard Journal Entry Form, please remember the following: All accounts and project ID’s should be active. Users can check for active project ID’s and accounts via the Chart of Accounts Lookup page on TechWorks: o TechWorks > My Work > Applications and Resources > Financials, Procure-to-Pay & Research Administration > Frequent Links-Financials > Chart of Accounts Lookup All journal entries should have sufficient supporting documentation, including a detailed explanation of why the entry is needed and a copy of the ledger or report highlighting or otherwise denoting the affected transactions. All 6xxxxx, 751xxx, or 752xxx account adjustments must include the Vendor ID or Employee ID information (not SSN or FEI Number). This is necessary to facilitate reporting of travel and consulting expenses to the state. Page 1 Updated February 2016 Georgia Institute of Technology Standard Journal Entry Procedure If equipment charges are being adjusted, (accounts 743xxx – 744xxx or 843xxx – 844xxx), the Equipment Tag Number is a required field. The PO number should be entered in the Campus Ref field and the Voucher ID should be entered in the Other Ref field. If PCard charges are being redistributed (account 714150 or 714160), the “XN” number from the Expense Ledger (38) or PEB Report is required and must be entered in the Other Ref field. All journal entries must be signed by the person who prepared the entry and approved by a department supervisor or manager. The person who prepared the journal entry and the person who approved the journal entry cannot be the same. Debits should be shown on the form as positive amounts (+). Credits should be shown on the form as negative amounts (-). Please note that if information is omitted from or in error on the Standard Journal Entry form, the preparer will be contacted via phone to provide the documentation or the journal entry will be returned to the preparer. This action will depend on the severity of the omission or error. PROCEDURE The Standard Journal Entry Form should be used as a transmittal sheet for journal entries. The electronic version of this form is available via the following website: http://www.controller.gatech.edu/forms. FORM The form includes validations to ensure the number of characters entered for fields such as Project ID, Account, Campus Ref, Other Ref, Vendor/EmplID Number and Equipment Tag Numbers are accurate. This will assist users in ensuring they have entered the journal entry information properly. INSTRUCTIONS A. SHORT DESCRIPTION 1. Enter a brief description of this journal entry (20 characters max). 2. This information will be captured in the financial system. B. LONG DESCRIPTION 1. Enter a detailed description of journal entry. 2. The Long Description will not be captured in the financial system; however it will be visible in the Image Now document imaging system. C. PAGE 1. Enter the total number of pages used for the journal entry (i.e. 1 of 2, 2 of 3, etc). D. DATE 1. Enter the date the preparer created the journal entry. E. CONTROLLER’S OFFICE USE ONLY 1. This box is for Official Business Use by the Controller’s Office. F. PROJECT ID 1. Enter a valid Project ID (7 to 10 characters). Page 2 Updated February 2016 Georgia Institute of Technology Standard Journal Entry Procedure G. ACCOUNT 1. Enter a valid Account number (6 characters). H. CAMPUS REF 1. Enter a Campus Reference number (10 characters max). 2. This is normally the PO number or internally assigned reference number from the Expense Ledger (38). 3. This information will be captured in the financial system. I. OTHER REF 1. Enter an Other Reference number (10 characters max). 2. This is normally the voucher number, JE number, or internally generated reference number from the Expense Ledger (38). 3. If redistributing a PCard Transaction using account 714150 or 714160, the “XN” number is required to be entered in the Other Reference field. 4. This information will be captured in the financial system. J. VENDOR / EMPLID# 1. Enter a Vendor or Employee ID (10 characters max). 2. If account like 6xxxxx, 751xxx or 752xxx, this field is required. 3. This information will be captured in the financial system. K. EQUIPMENT TAG# 1. Enter a valid Equipment Tag Number (7 or 8 characters). 2. If account between 743xxx and 744xxx or between 843xxx and 844xxx, this field is required. 3. Tag number must include leading zero’s to be valid. 4. This information will be captured in the financial system. L. AMOUNT 1. Enter the Debit (+) or Credit (-) amount for the transaction line. The (+) does not have to be entered for the debit transaction line, but the (-) must be entered. M. PREPARED BY 1. Type the name, title and department of the person who prepared the journal entry. 2. The preparer must sign the form next to their typed name. 3. The JE Preparer information will not be captured in the financial system; however it will be visible in Image Now. N. APPROVED BY 1. Type the name, title and department of the person who approved the journal entry. 2. The approver must sign the form next their typed name. 3. The JE Approver information will not be captured in the financial system; however it will be visible in Image Now. O. SUPPORTING DOCUMENTATION 1. Attach all relevant supporting documentation for this journal entry. 2. This should include a copy of all ledgers, reconciliations, etc. necessary to explain this information to an auditor. Page 3 Updated February 2016