Policy
FIACCT 02-05_10 General accounting- Journal vouchers- situations requiring a JV
Effective: March 16, 1998
Revised: September 1, 2006
Reviewed:
Purpose
This policy provides information on situations that require the use of a Journal Voucher transaction.
Background
Use Journal Vouchers to enter accounting events that can not be recorded on any other transaction type. Six situations that generally require a Journal Voucher are listed below:
To reclassify accounting distributions on posted transactions that cannot be processed with an Inter-Agency Transaction
To expense recorded assets (i.e. depreciation, inventory, prepaid items, etc.)
To make accounting entries for standard accruals and reversals
To recognize deferred revenue
To record cash disbursements through electronic fund transfers
To record the cash sweep process (by the Treasurer
Procedures
Responsibilities
Department
Action
Complete the Journal Voucher form based on one of the following
six situations.
To reclassify accounting distributions on posted transactions that cannot be processed with an Inter-Agency Transaction:
Use the Journal Voucher transaction to change the account
distribution codes on a previously entered revenue or expense
transaction. This includes breaking down a summary transaction into
more detailed transactions, and changing codes on any general ledger entry.
Follow the steps below to code a reclassification on a Journal Voucher:
Code one line on the Journal Voucher form to zero out the existing line. The codes must be entered exactly as they appear on the original transaction. Enter the amount on the credit side if you are reclassifying an expense transaction, and on the debit side if you are reclassifying a revenue transaction.
You can code as many new lines as you want to balance the
canceled line. Code the same account type as was used on the canceled line. Fill in the remainder of the Journal Voucher lines using new codes if you want. All codes used must be valid in the FINET tables. Enter amounts on the debit side if you are reclassifying expense transactions and on the credit side if you are reclassifying revenue transactions.
To expense recorded assets (i.e., depreciation, inventory, prepaid items, etc.):
Use the Journal Voucher to expense inventoried items, capitalized assets, and prepaid items. In FINET recurring expenses are handled the same as one-time expenses; a transaction for a recurring expense
must be submitted in each accounting period in which an expense is
to occur. The lines recording the expense will always be the same; only the dates in the header will differ.
Follow the steps below to code an expensing of a recorded asset on a
Journal Voucher:
Code the new ledger line using an appropriate balance sheet account and fund; use account type 11 (asset offset to expenses); this will usually be the credit line.
Code the offsetting line with an account type 24 (expense) and a blank balance sheet account. Code the object, fund, and agency. These codes should match the codes used on the payment voucher or manual warrant that recorded the expenditure. This will probably be the debit line.
To Make accounting entries for standard accruals and reversals:
Use the Journal Voucher to record month or year end accruals that
reverse in the new accounting period.
Follow the steps below to make accounting entries for standard accruals and reversals on a Journal Voucher:
Access the document entry screen and use a manual document numbering. Enter an E as the last document number character.
Enter a reversal date on the Journal Voucher transaction. FINET generates a reversing Journal Voucher on the nightly cycle on or after the reversal date. The reversing Journal Voucher has the same document number, except the last character is changed to R.
To recognize deferred revenue:
Use the Journal Voucher to recognize deferred revenue.
Follow the steps below to recognize deferred revenue on a Journal
Voucher:
Code the debit line with account type 02, fund code, and the deferred revenue balance sheet account (from the cash receipt that recorded the advance receipts).
Code the credit line with account type 31, and the desired
account distribution for the revenue received. Code at least fund
and revenue source (and leave balance sheet account blank).
To record cash disbursements through electronic fund transfers:
See the Electronic Funds Transfer (EFT) policy in the PAYMENTS section of this manual for information on recording cash disbursements through electronic fund transfers.
To Record the Cash Sweep process (by the State Treasurer):
Use the Journal Voucher to record the cash sweep process by the State Treasurer. Agencies are responsible for depositing their funds in their individual bank accounts. On a daily basis, the State Treasurer sweeps these funds into a concentration account.
Follow the steps below to record the cash sweep process (by the
State Treasurer) on a Journal Voucher:
Code the debit line with the cash balance sheet account and with the State Treasurer’s bank account.
Code the credit lines with the cash balance sheet account and with the agencies’ bank accounts.