General Accounting

Policy

FIACCT 02-05_11 General accounting- Journal vouchers-reclassifying accounting distribution

Effective: March 16, 1998
Revised: September 1, 2006
Reviewed: 

Purpose

This policy provides an explanation of how to use the Journal Voucher (JV) transaction in FINET to reclassify the accounting distribution of posted revenue, expenditure, and general ledger transactions. This includes changing or correcting some component of the coding block, or breaking down a summary transaction into more detail. JVs may not be used to make any other adjustments to posted transactions.


Background

Journal Vouchers are flexible transactions used to make special types of entries in FINET. Most other transaction types are specialized enough the system can determine much of the accounting information associated with that transaction type, including the automatic preparation of offset debit and credit entries. For JVs, users must provide all accounting information, including both the debit and credit side of each transaction.

JV entries that need to be made regularly on a monthly, bi-monthly, or quarterly basis may be generated automatically by FINET by setting them up in the Recurring Journal Voucher Master (REJV) Table.

One special type of entry that is accomplished using a JV is the reclassification, or changing, of the accounting distribution on previously posted revenue and expenditure transactions, and on general ledger transactions.

The A611 Detail Agency Trial Balance by Accounting Distribution Report contains most or all of the coding information needed on a JV used to reclassify posted entries. This report should be used to determine the coding on these type JVs.

When reclassifying accounting distributions, the following system-default balance sheet accounts
may not be used:
1. The system-wide default pre-encumbrance code used for requisitions.
2. The system-wide default encumbrance code used for purchase orders.
3. The system-wide default vouchers payable code used for payments.
4. The system-wide default accounts receivable code used for invoices.

The procedures below are divided into two sets. The first describes procedures if one of the four default accounts listed above is not affected, while the second describes procedures if one of the four default accounts is affected.


Procedures

Responsibility

Action

For reclassifications not affecting system-default balance sheet accounts

Department

Determine that the accounting distribution on a posted entry needs to be changed that does not affect any of the four system default accounts mentioned in the Background section above. Obtain copy of A611 report from Finance to identify the coding information from the posted transaction for which the accounting distribution needs to be changed.
Complete the required fields on a Journal Voucher Form, obtain authorized signature for department approval, and submit to the Division of Finance. The required data fields are explained below:
1. Complete all Header Section data entry fields as indicated on the Journal Voucher Form.
2. Complete the Line Section and Detail Section data entry fields as indicated on the Journal Voucher Form.

Enter one line to zero out the existing transaction using the original
accounting distribution identified on the A611 report. For this line, 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.

Enter one or more lines to balance the canceled line. The same account code type that was entered on the line used to zero out the existing transaction must be used on all offsetting transaction lines.
For these lines, enter the amounts on the debit side if you are reclassifying an expense transaction, and on the credit side if you are
reclassifying a revenue transaction. The total of the offsetting lines must equal the amount of the canceled line.

The following fields in the line section and detail section are required to be entered on the Journal Voucher Form to process the reclassification transaction:
 Fund
 Agency
 Org – for a line that includes a revenue source or object code
 Appr Unit – for the canceling line, if it was used on the original
transaction for the offsetting lines, if an object of expenditure, or a revenue source for dedicated credits, fixed collections, or federal revenue is entered on this line.
 Activity – for the canceling line, if it was used on the original
transaction for the offsetting lines, if activity is required for the fund/agency combination entered on this line, or if activity is desired for this line
 Object/Source – if reclassifying a revenue or expenditure transaction
 B.S. Account – if reclassifying a general ledger transaction
 Acct Type
 Job Num – for the canceling line, if it was used on the original transaction for the offsetting lines, if job number is required for the fund/ agency combination entered on this line, or if job number is desired on this line
 Rept Cat – for the canceling line, if it was used on the original
transaction for the offsetting lines, if reporting category is required for the fund/agency combination entered on this line, or if reporting category is desired on this line
 Debit Amount – if this line is the debit side of the entry
 Credit Amount – if the line is the credit side of the entry
 Bank Code – if reclassifying the cash accounts on a cash receipts or a cash disbursements transaction
 V/P Code – if reclassifying a billed receivable or a voucher payment transaction
 V/P Indicator – if reclassifying a billed receivable or a voucher
payment transaction

Division of Finance

Review Journal Voucher Form, approve, and enter data into FINET using instruction provided in the JV Entry policy in this section of this manual.

For reclassifications affecting system default balance sheet accounts for pre-encumbrances, encumbrances, vouchers payable, and accounts receivable

Department

Department Determine that an accounting distribution change is required for a posted transaction that does affect one of the four default balance sheet accounts that can’t be entered on a JV transaction. This includes the default account for requisitions, purchase orders, payment vouchers, and A/R invoices.

Obtain copy of A611 report from Finance to identify the coding
information from the posted transaction for which the accounting
distribution needs to be changed.

For changing the accounting distribution for posted requisition, payment voucher, and A/R invoice transactions, a JV transaction is not required. To reclassify these, take the following steps:

1. Enter a reversing transaction using the same FINET transaction type (i.e. requisition, payment voucher, or A/R invoice), entry screen and accounting distribution that was used to create the original transaction that is being reclassified (see the A611 report for the original accounting distribution) including all data fields listed in the set of procedures above.

2. Enter a new transaction(s) using the same FINET transaction
type (i.e., requisition, payment voucher, or A/R invoice) and entry screen that was used to create the original transaction that is being reclassified, and use the new accounting distribution.

For changing the accounting distribution for posted purchase order
transactions, a JV may or may not be needed as describe in 2) below.
To reclassify, take the following steps:

1. Enter a reversing transaction using the same FINET transaction
type (i.e. purchase order), entry screen and accounting distribution that was used to create the original transaction that is being reclassified.

2. If the reclassification does not affect the balance sheet account
the original transaction posted to, a JV transaction is not necessary. Enter a new transaction(s) using the same FINET transaction type (i.e. purchase order) and entry screen that was used to create the original transaction that is being reclassified, and use the new accounting distribution.

If the reclassification does affect the balance sheet account the original transaction posted to, complete a Journal Voucher Form as described in the #1 procedures above for reclassifications not affecting the four default balance sheet accounts, and use a balance sheet account other than the default encumbrance account as part of the new accounting distribution on the JV transaction. Obtain departmental authorized signature and submit form to the Division of Finance.

Division of Finance

Review Journal Voucher Form, approve, and enter data into FINET using instructions provided in the JV Entry policies in this section of this manual.

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