Rev. 10/07
Section 4.06
Page 1 of 3
SECTION 4.06 - JOURNAL ENTRIES
Contact: Accounting @ Extension 4177
A.
Overview
The Accounting Office oversees the Journal Entry function of the District.
Journal Entries are a method of recording financial transactions in the
appropriate accounts of the District’s financial statements. Transactions that are
posted through the Journal Entry module of IFAS include postings of Account
Code Corrections, Debit/Credit Forms, Work-Orders (used only by departments
providing services to schools), and Stores Inventory postings (used by Food &
Nutrition Services Department only). All Journal Entries are assigned a unique
sequential journal entry number or work-order number. Appropriate supporting
documentation is maintained in monthly journal entry books in the Accounting
Office, or on file with the department providing service in the case of work-orders.
At times, sites may receive a copy of a journal entry when the Finance
Department has initiated or processed something impacting a site’s financial
transactions. This section discusses types of journal entry methods and specific
forms that sites may use to initiate corrections or transfers via the IFAS Journal
Entry module.
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B.
Account Code Corrections
Account Code Change Voucher forms are used to correct or change the
code an expenditure or revenue transaction has been charged to after it
has already been posted and is showing on the site’s Transaction Recap
reports in IFAS.
This form is used to change organization keys or object codes
for those transactions that have already been posted. Examples may include,
but are not limited to, employee reimbursements, invoice payments, payroll
timesheet costs (See also Payroll section 5.07), receipts of revenue, or other
expenditure transactions.
Directions for making an account code correction are as follows:
•
Use the Account Code Change Voucher form located at page 4.06a. An
electronic version of this form can also be found on the District’s website
under Departments, Finance, Business Manual, Section 4.06.
•
When preparing an Account Code Change Voucher, be sure to complete the
description of items
section. If there are several corrections, attach a copy of
a Transaction Recap report highlighting the corrections and write “see
attached” in the
description of items
section.
•
All vouchers must have the signature authorization of the budget authority.
Cautions:
•
When dealing with invoices against an established purchase order or
contractual services agreement, if payment has not yet been made, see
Business Manual Section 2.03, paragraph F – Purchase Order Revisions, for
guidance. If the coding can be corrected on the Purchase Order side before
payment goes through Accounts Payable, it is much less paperwork and
creates the cleanest record in the system of accounts.
Rev. 10/07
Section 4.06
Page 2 of 3
•
If the transaction involves budgeted funds (not actual transaction dollars), see
Section 3.11 – Budget Change Process or contact the budget office for
assistance.
•
If the transaction needs to be transferred or charged to another fund (such as
the ASB Fund, Capital Projects Fund, or the Private Purpose Trust Fund), see
Section 4.07 – Accounts Receivable & Other Claims or Billings paragraph on
Interfund Billings.
C.
Work-Orders
Food and Nutrition Services, Information Systems and Technology, Maintenance,
and Transportation Departments provide numerous services to other
departments and schools within the District (For example: catering for an activity,
printing and publishing jobs, maintenance work, and buses for field trips). These
departments utilize an automated Work-Order Module process within the
District’s IFAS financial software system to charge the costs of their services to
the site who receives the benefit of the service. Work-Orders are given a unique
work-order number and are posted weekly. The transactions posted via the
work-order module utilize the 6XXX series of object codes and show on
Transaction Recap reports in the transfers in/transfers out section. Sites need to
contact the department from whom they need service in order to initiate requests
in the format the specific department requires. The department providing and
charging the service is required to maintain appropriate written authorization and
documentation on file as back up.
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D.
Debit/Credit Transfers
The Debit/Credit Transfer process is a non-automated, paper driven method for
unique types of transactions that don’t fit within the current set-up for Work-Order
posting. A blank copy of the Debit/Credit Transfer Voucher Form is located at
4.07b and can also be found in electronic format on the District’s website under
Departments, Finance, Business Manual.
•
The District accounting system is set up to allow debit/credit transfers within
the
General Fund
only. See the section on Interfund Billings for assistance
on transactions that need to be billed across funds. (i.e. from General to
Capital, from ASB to General, etc.)
•
The Debit/Credit Transfer Vouchers are a means to charge the cost of a
service or in some unique situations to transfer the cost of a good, to another
department/school who receives the benefit of the service or good.
•
Transfers are prepared by the department performing the service(s).
•
Written authorization for the charges are retained on-site as backup or may
be attached to the form sent in for processing.
•
Some examples where a Debit/Credit Form might be allowed (in place of an
Account Code Change Voucher) include: 1) Copier usage costs where one
department is billing other departments for their part in the usage of the
copier. 2) Special office supplies one department purchases in bulk, but
parcels out to other departments on an as requested basis. When this
occurs, the 6XXX series object codes are not used and it is similar to an
Account Code Change Voucher in that the budget authority being charged
needs to sign and authorize the Debit/Credit Form before it can be processed.
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Section 4.06
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E.
Deadlines
All Account Code Change Vouchers and Debit/Credit Transfer Vouchers must be
received in the Accounting Office no later than the 25
th
of the month for the
corrections to be reflected in the current month. Corrections will be reflected on
your monthly reports with a Journal Entry Number in the reference column. All
Journal Entries are posted to the last calendar day of each month.
Work-Orders are on a Friday weekly posting format. However, each department
has their own processing and posting timeline. This means the lag between the
time the service is provided and the time the charge is reflected in IFAS, may
vary by department. Most sites will find that posting via the Work-Order module
results in a quicker turn-around time for posting the charge. Sites may contact
the servicing department to inquire about charges if discrepancies arise.
EVERETT PUBLIC SCHOOLS
ACCOUNT CODE CHANGE VOUCHER
INSTRUCTIONS: This voucher is used to approve and process a change
in the account code to which an expenditure or revenue was charged.
Voucher prepared by
ACCOUNTS TO BE DEBITED
AMOUNT
TOTAL DEBITS
Charges listed above are hereby authorized:
ACCOUNTS TO BE CREDITED
AMOUNT
TOTAL CREDITS
DESCRIPTION OF ITEMS
(Attach transaction recap, as needed)
WARR. DATE
VENDOR/PAYEE
WARRANT NO.
P.O. NUMBER
TOTAL AMOUNT
REASON FOR CHANGE:
Clerical Error
Other:
Change in Spending Plan
Signature of Budget Authority
Date
For Accounting Office Use
Journal Entry No. ______________
Month ________________________
Approved by __________________
Rev. 10/07
Section 4.06
4.06a
Everett Public Schools, District No. 2
DEBIT - CREDIT TRANSFER VOUCHER
General Fund
(Debit)
Service Performed by:
(Credit)
Description:
Prepare by:
Approved by:
OBJECT
DEBIT
CREDIT
Journal
Total Debit
Entry:
Total Credit
Distribution:
Original - Accounting Office
Copy to - Department being Debited
FOR ACCOUNTING OFFICE USE
Month Entered_____________________________
Approval__________________________________
Journal Entry No.___________________________
Service Performed for:
ORG KEY
Rev. 06/00
4.06b