Journal Entry Procedures
Purpose of J/E's
- To reclassify transactions resulting from processing errors.
- To overcome system errors/limitations.
- Processing errors and system errors/limitations are revealed with J/E's and should be investigated and corrected if possible.
- The Preparer creates the J/E and attaches all applicable backup to it.(Required)
- Attached backup should clearly outline the purpose of the J/E & include copies of all relevant source documents.(Required)
- The J/E is then forwarded to the Supervisor/Director or above for review and approval (Only Finance & Administrative Services division Supervisors/Directors and above can approve J/E's).(Required)
- All J/E's are to be approved before they are entered regardless of preparer level.(Required)
- After authorization the J/E goes to a designated person with security access to enter J/E's into Colleague.
- Generally, only Finance & Administrative Services personnel have access to enter a J/E into Colleague.
- At the Colleague J/E input screen the Enterer records their name as the 'Author" and then records both the name of the Preparer and the Description of the entry (from the J/E template) into the 'Comments' section of the screen.
- See Example(1) of Author (Preparer) and Example(2) of Comments (Description of Entry).
- After the J/E is processed the person entering the J/E must record the J/E number given by Colleague onto the J/E form.(Required)
- The original J/E is forwarded to Finance & G/L Systems via Interoffice Mail.(Required)
- Originating department should keep a copy.
- G/L files the J/E in one central location of the Finance & G/L department for research & auditing purposes.
- G/L audits compliance with procedures (e.g., J/E approval, description, etc.) and investigates breaks in sequence (missing J/E's). Results are reported to the Director of MIS Training & G/L Systems and recurring issues are escalated upward when necessary.
- J/E's are posted to the General Ledger in two hour intervals. (No change to current practice.)
For a hands on copy of the above procedures please print out the Powerpoint link below:
G/L Journal Entry Procedures