Why would I need to enter a journal entry?

  • You agreed to offset expenses related to an event that another department was having. In this case you would utilize the transfer account codes of (752001 (for the DEBIT) and 751001 (for theCREDIT). To avoid having to do a journal entry for something of this nature you may also complete the purchase requisition, or documentation required for the transaction, including all chartstrings and amounts associated with them, as well as authorized signatures, for accurate processing from the beginning, thus eliminating the need to wait for a journal to be entered and/or a correction to be made.
  • As you were reconciling your chartstrings (this should be done each and every month to ensure proper posting of items in your chart strings) you notice, for example, that a transaction was miscoded to office expenses, when it really should have been coded to travel. A journal entry for this instance would require a DEBIT to the appropriate travel line and a CREDIT to the office expense line.
  • The University’s ITS Division as well as some individual departmental/school and college divisions will often receive a reduced rate for software or hardware purchases made in bulk. In this instance a journal entry would be performed to reimburse the department who originally purchased the item (this would be a CREDIT) and the department who is receiving the item would be charged (this would be a DEBIT) to offset the expense of the original purchase. Although this may seem as if the area is “selling” you a product, they in fact are not, they are merely supplying a product to you, at a reduced rate (most times) due to bulk purchasing. This is NOT revenue, as they are merely offsetting their initial investement, and should not be recorded as such.
  • There may be several additional reasons for a journal entry to be done; when in doubt always contact General Accounting to determine what you should do. This not only ensures that the entry is done timely and properly, but enables you to have total control over your financial data and maintain the most accurate and up to date information at any given time.
  • Lastly, ANY and ALL entries that involve a FUND 13 or a PROJECT TAILMUST be submitted with all the appropriate documentation attached, for this entry to be processed. Due to the nature of the FUND, the sponsors can, will and do expect full accountability for how the funds given are utilitzed to ensure that non applicable items are not being funded. The most efficient way to track and maintain this information is for Sponsored Accounting to house it in their area.