Manual General Ledger Journal Entry Procedure
Manual General Ledger JournalEntry ProcedurePolicy Hierarchy linkManual General Ledger Journal EntryResponsible OfficerDirector of Corporate Finance and Advisory Services and SharedServicesContact OfficerSenior Group Statutory Reporting Manager, Corporate Finance andAdvisory ServicesSuperseded DocumentsVersion 1.0Associated Documentshttps://www.fin.unsw.edu.au/NSF KnowledgeBase/FKB GL.htmlVersionAuthorised by2.0Director of Finance1.2.3.4.5.6.7.8.Approval DateEffective DatePolicy Statement . 1Objective . 1Scope . 1Definitions. 2Manual Journal Overview. 3Procedure . 36.1When to request/use a Manual Journal Entry . 36.2Manual Journal Procedure Flowchart. 46.2.1 Manual Journal Procedure using L30/L50 forms . 46.2.2 Manual Journal Procedure without L30/L50 forms . 56.3How to request a Manual Journal Entry . 66.4How to complete a Manual Journal Entry. 76.4.1 Journal Header/Journal ID (max 10 Characters) . 76.4.2 Journal Description (max 50 Characters) . 76.4.3 Line Item Description (max 30 Characters) . 86.4.4 Supporting Documentation . 96.4.5 Approval and Filing . 9Internal Control . 9Review & History . 101. Policy StatementThe University recognises that manual general ledger journal entries are an essential part ofthe work of a University Finance personnel.The aim of this document is to ensure a consistent best practice methodology acrossUNSW Faculties and Divisions for manual general ledger journal entries.All UNSW staff that are responsible for preparing, entering, or approving journal entries mustbe knowledgeable of journal entry procedures, the University’s Chart of Accounts, andguidelines in relation to the expenditure of UNSW funds.2. ObjectiveThe purpose of this document is to outline the process which ensures that all manual journalentries to UNSW’s general ledger are properly prepared, reviewed, approved, and recordedin accordance with audit requirements.3. ScopeThis procedure applies to all UNSW staff involved in the creation, processing and authorisationof manual journal entries. Journal entries that are system generated and automatically postedto the general ledger are not covered.This document does not cover the specific procedures involved in the uploading and postingof journals to the General Ledger in NS Financials as this is covered in the Finance trainingportal.Manual General Ledger Journal Entry ProcedureVersion: 2 .0Page 1 of 11
System related information and procedures are contained in the Online Training Tool on theUNSW Finance website:https://www.fin.unsw.edu.au/NSF KnowledgeBase/FKB GL.html4. DefinitionsGeneral LedgerThe General Ledger contains all UNSW financial transactions.Information from the General Ledger isused by UNSW to analyse, report and monitor theresults of our business. The General Ledger, Chart ofAccounts and ChartFields are interdependent.JournalIn accounting terms a journal records transactions.At UNSW we use the double entry accounting system so there isalways a (or several) debit and a credit journal entry and the total oneach side balances.Manual JournalEntryA method to record an accounting transaction in thegeneral ledger. There are 3 main types of manual journals :Online Journal (ONL), Spreadsheet Journal (SSJ) and End ofMonth Journal (EOM).Automated/SystemGenerated JournalEntryThese are journals that are generated from other financialapplications (for example HumanResources, etc) or from other UNSW interfaces (for exampleAccounts Payable, Payroll, Treasury, etc).These journals are scheduled and controlled byFinance Business Solutions.PreparerThe person who has the responsibility to complete the journalentry form.EntererThe person who is responsible for uploading the journal intothe Financial system.Preparer/EntererThe person who has the responsibility to prepare the journal andinputting the data into the Financial System.AppropriateDelegateThe person who is responsible and accountable for managing thefinancial position of the department, project, etc.Document oforiginal entryIncludes Invoices for payment, cash receipts and casual salaryclaims, etc.Chart Of AccountsThe Chart of Accounts (COA) is the way UNSWcaptures, authorises and reports on data in NS Financialsgeneral ledger.AccrualAccrual accounting refers to the accounting basiswhereby transactions are brought to account as they are earned orincurred (not necessarily when cash is received or paid) andincluded in the financial statements for the accounting periods towhich they relate.PrepaymentPrepayment is when cash is paid or received in advance for goodsor services that have not yet beendelivered or performed.Manual General Ledger Journal Entry ProcedureVersion: 2 .0Page 2 of 11
5. Manual Journal OverviewThere are two ways to process Manual Journals;1. Online Journal (ONL) – which is entered and processed directly in NSFinancials (appendix A)2. Spreadsheet Journal (SSJ) – which is processed via an Excel spreadsheet that isuploaded and then posted to NS Financials (appendix B)Journal CategoryOnline ManualJournal (ONL)Processed directly intoNS Financial Systemusing the GeneralLedger Journal EntryScreen (appendix A)Spreadsheetenabled Excelspreadsheet that canbe uploaded, editedand posted in NSFinancial SystemJournal PreparationJournal SourceJournal EntryForm (L30/L50)NSS Financials Clear and legible details for bothPreparer and Approver (name, prepdate, Faculty/School/Dept location,contact number, authorisation date)Suitable for one off journals withsmall volume oflines Adequate supporting documentationexplaining rationale and substantiatesthe amounts within the journal Documentation must be of a standardthat would enable the reviewer torecreate the journal and understand itspurposeSpreadsheetGreater flexibility forjournal creation Forward form and supportingdocumentation to appropriateapproverThis is being phased out as at OctoberMonth EndOUT OF SCOPEGeneratedAutomatedScheduled and controlledby Finance BusinessSolutionsOutcomesPermitted: Detailed explanation of the reason forthe journal requestDerived directly fromother applications andinterfacesJournal OutputsOtherinterfacesFormally pre-approvedprogrammed journalsscheduled directlyfrom source – usuallylarger sized journalsfor example Payrolljournalsfrom one chartfield toanother Transferral offunds/revenue fromone chartfield toanother Correction ofpast errorsfor accrualsandprepaymentsJournal SourceIndicatorJournal Reference IDindicates source6. Procedure6.1When to request/use a Manual Journal EntryManual journal entries are used for the following purposes: To transfer costs from one chartfield to anotherTo transfer funds from one chartfield to anotherTo correct errors made this yearTo adjust accounts for accruals and prepaymentsTo record transactions that are not captured in any of the sub ledgersManual journals that are raised to correct errors that are a result of automated/systemfailures should be followed up to ensure the error is corrected at the source.Manual General Ledger Journal Entry ProcedureVersion: 2 .0Page 3 of 11
6.2Manual Journal Procedure Flowchart6.2.1 Manual Journal Procedure using L30/50 FormsStartPreparer- Complete JournalEntry Form (L30/L50)and verify data iscomplete and correctPreparer – Forwardform and supportingdocs to appropriateapproverJournals requiring correctionshould be rejected andreturned to preparer withconcise notes on whatrequires correction and whyApprover- Verify journal entry iscorrectPreparer- Approved journal form andsupporting documentationforwarded to AuthorisedEntererAuthorised Enterer- Check journal form forcompleteness and accuracy-Input Journal Header detailsto journal entry form whereapplicableONLEnter Journal viaONL or SSJ?Authorised Enterer- Copy data from journalentry form into ONL in NSFinancialsSSJAuthorised Enterer- Copy data from journalentry form into SSJtemplateAuthorised Enterer- Upload SSJ to NSFinancials GeneralLedger- Post journal in NSFinancialsAuthorised Enterer- Edit Journal lines inONL NS Financials- Nominate approver- Post journal in NSFinancialsEnd of ProcessManual General Ledger Journal Entry ProcedureVersion: 2 .0Page 4 of 11
6.2.2 Manual Journal Procedure without L30/50 FormsStartPreparer completesjournal and verifiesdata is completeand correctEnter Journalvia ONL orSSJ?ONLEnter Journalinto ONL in NSFinancialsSSJUpload SSJTemplate intoNS FinancialsGeneral LedgerUpload journalbackupdocumentationinto NSFinancialsJournal issubmitted forapprovalautomaticallyApprover checksjournal and backupdocumentation forcompleteness andaccuracy in NSFinancialsIs journalaccurate andcomplete?NoJournal is edited toreflect thecorrection in NSFinancialsYesJournal ispostedEnd of ProcessManual General Ledger Journal Entry ProcedureVersion: 2 .0Page 5 of 11
6.3How to request a Manual Journal EntryRequestors prepare their journals by completing a standard UNSW Journal EntryForm (L30/L50). While the new process is not yet mandated, this process is being phased outthprogressively as at 28 October, /FormsDirectory.htmlThe following checklist should be adhered to when completing an L30/L50; Detailed explanation of the reason for the request including what the entry accomplishes and whyit is necessary. References to supporting documentation including emails, drill-down reports,invoices, etc can also be detailed hereClear and legible details of the person who prepared the journal including date of preparation,Faculty/School/Department location and a contact numberClear and legible details of the person who authorised the journal including date of authorisationand a contact numberAccurately document Chart of Accounts details (Appendix C)Line amounts in dollars and cents (2 decimal places)Indication as to whether the line amount is a debit or a creditEnsure totals debits and credits match (An unbalanced journal cannot be posted to the GL iebalance to 0)Line item description (up to 30 characters) which should clearly explain each journal line item(see 6.4). Client Spreadsheet Journal T emplate123456NB:Enter Journal Header Information.Enter data within the highlighted border.Description journal line 30 Characters.Maximum lines 150.Ensure that the Journal does balance, refer cell L8, must contain 0.000000 otherwise journal will not balance in PeopleSoft.Information relating to Date, Requested By, Telephone No, Approved By & Faculty/School/ Dept. must be entered.0.000000Journal HeaderJournal IdMax. 10 charactersJournal DateMax. 10 charactersDescriptionMax. 50 charactersLedger: ACTUALS:DateRe que s te d ByACCRUE ADD:Te le phone NoApprove d byFaculty/School/De ptLe dge rAccountFundCLIENT SERVICES Che ck e d ByDateDate Proce s s e dJournal NoClas sProje ctReason for RequestLine NoUnit1 UNSWA2 UNSWA3 UNSWA4 UNSWA5 UNSWA6 UNSWA7 UNSWA8 UNSWA9 UNSWA10 UNSWA11 UNSWAACTUALSUNSWAACTUALSDe pt IDProgramAm ountDe s ACTUALSACTUALSACTUALSACTUALS12Manual General Ledger Journal Entry ProcedureVersion: 2 .0Page 6 of 11
6.4How to complete a Manual Journal EntryFinance recommends that manual journal preparers adopt the followingcharacter conventions to ensure a best practice uniform approach.6.4.1Journal Header/Journal ID (max 10 Characters)Journal Header/Journal ID’s should enable stakeholders to immediatelyascertain: Which Faculty/Dept/Division owns the journalThe employee responsible for posting the journalA journal reference ID that can be traced back to a journal register (locallystored and managed)JournalHeader/JournalID (confirm characters)2 or 3 alphacharacters (egMED forMedicine)6.4.2EntererJournalRegister ID2 or 3 alphacharacters (eg JAfor JamesAnderson)5 or 6 numericalcharacters (asper dept journalregister)Fac/DeptJournal Description (max 50 Characters)The journal description should offer a full explanation of the transaction(s) beingprocessed and should indicate why the journal is necessary by including thefollowing:What - is being transferred/ correctedWhere - it is being transferred to/fromWhy - the original transaction was incorrectWho - is requesting and who is approving the journalWhen - what timeframes are the journal in relation toHow - what supporting documentation there is to substantiate the reasonfor a manual journal eg reference to emails, reports, invoices, drill-downsManual General Ledger Journal Entry ProcedureVersion: 2 .0Page 7 of 11
6.4.3Line Item description (max 30 characters)The line description should clearly explain each journal line item and should containenough relevant information for stakeholders to identify what the line item relates to.It is up to the discretion of the relevant Finance teams within each Faculty/Divisionas to the application of naming conventions in the Line Item Description, howeverFinance recommends the following naming convention;Line ItemDescription (up toACTIONIDOTHER30 characters)3 character actioncode identifyingreason (eg COR forCorrection)What is beingtransferred (egVoucher 123456)Any additional infothat will assist usersto identify what isbeing moved (egDept ref codes)Examples of common action codes may include;Action CodePurposeCORICHWhen correcting an error in the original transaction's chart-fieldWhen correcting payroll expenditure which has been posted to anincorrect chart-fieldWhen processing internal charges between Faculty’s/Division’sfollowing the supply of a product or serviceINTTo be used for interest distributionREVTo reverse an incorrectly posted journalRACTo reverse an incorrectly posted accrualTRFTo transfer expenditure from one chart field to anotherCAPWhen correcting capital expenditurePREWhen expensing the ‘used’ portion of a payment made in advanceWhen accruing for the cost of goods or services which have beenincurred in one accounting period but not paid in that periodPCOACCManual General Ledger Journal Entry ProcedureVersion: 2 .0Page 8 of 11
6.4.4Supporting DocumentationManual journal entries should have supporting documentation that explains the rationaleand substantiates the amount of the journal to a standard that would enable a reviewerto recreate the journal and understand its purpose. The following should be adhered towhen providing supporting documentation; If a journal relates to a specific invoice then a copy of that invoice must beincluded For journals raised to make a correction to an earlier entry, the supportingdocumentation must show where the original entry was posted (eg Nvisiontransaction drilldowns) Journals relating to cost recoveries must have documentation to substantiate thereason for the transfer, time period that the costs relate to, and amounts Any journals that involve the transfer of a group of expenses must havedrilldowns as backup which will enable reviewer to get a breakdown of expensesif requiredAll supporting documention must be uploaded into NS Financials if not attached to theL30/L50.It is the responsibility of the Management Accountant (or equivalent) withinthe Division/Faculty to ensure that all journal details are accurate, and theGeneral Ledger coding conventions used are current and correct.Journals are not permitted if no supporting documentation can beprovided (ie accruing to budget)6.4.5Approval and Filing All journals require approval by an authorised delegate prior to posting to thegeneral ledger.All journal entries must include the contact details of the;o Preparero ApproverFaculties/Divisions should implement protocol to ensure all journals areprocessed in the correct periodIt is the responsibility of the Faculty/Division to maintain a journal register7. Internal Control The adjustment of prior year numbers is not permitted – It is the responsibilityof the Finance Manager of the relevant Faculty/Division to ensure all income,salary, and non-salary expenditure is appropriately allocated by the end of thefinancial yearo Therefore journals impacting Retained Earnings (9101) must have priorapproval from Director of Shared Services and Corporate Finance &Advisory Serviceso Any journals impacting projects whose figures/balances have previouslybeen externally reported are not permitted Coding classifications must be adhered too If the journal is a correcting entry to move an item to a different chartfield,the natural account should not change unless it was classified incorrectlyin the original entry (eg an item coded to travel expense should not bemoved to a non-travel line in the general ledger unless it was actually anon-travel expense ie correcting to budget is not permitted)o If the journal is to correct items from external sources, internalrevenue/expense codes are not to be used (and vice-versa)Manual General Ledger Journal Entry ProcedureVersion: 2 .0Page 9 of 11
oJournals relating to the reclassification of a transaction to/from an incomeaccount from/to an expense account must seek approval from Director ofShared Services and Corporate Finance & Advisory Services There must be segregation of dutieso The client (requestor) cannot also be the enterer and approver of his/herown entry. In other words an individual may be permitted to perform any2 of the 3 duties, however is not permitted to perform all 3.o When entering journals straight into NS Financials, the requestor/enterercannot also be the approver of his/her own entry. Internal Account journals must balanceo When using internal account codes when posting journals, both sides ofthe journal must use an internal account code.o The system will automatically ‘suspend’ the journal if internal accountcodes are not used for both sides of the journal, and will send out areminder to the journal creator to amend every 48hrso It is expected that suspended journals are resolved in a timely manner. Incomplete Journals must be addressedo If there are incomplete journals in the system, the journal creator willreceive an email reminder every 48hrs until the journal has beenamended.o It is expected that incomplete journals are resolved in a timely manner.8. Review & HistoryThis procedure document supersedes Version 1.0.Manual General Ledger Journal Entry ProcedureVersion: 2 .0Page 10 of 11
Appendix A: Online Journal Entry Template (ONL)Appendix B: Spreadsheet Journal Entry Template (SSJ)Appendix C: Chart of Accounts Journal usiness UnitAccountDepartmentFundProjectProgramClass5 (Alpha)4 (Numeric)10 (Alpha/Numeric)5 (Alpha/Numeric)6 (Alpha/Numeric)000000YesYesYesYesNoYes - DefaultYes - DefaultManual General Ledger Journal Entry ProcedureVersion: 2 .0Page 11 of 11
The authorisation and amendment history for this document must be listed in the following table. Referto information about Version Control on the Policy website.VersionAuthorised byApproval DateEffective Date1.0Director ofFinance10/12/201210/12/20122.0Director ofFinance18/12/2013Manual General Ledger Journal Entry ProcedureVersion: 2 .001/01/2014Sections modifiedOriginal4.0 Definitions6.2 Manual ProcedureFlowchart6.3 How to request aManual journal entry6.4.4 SupportingDocumentation7. Internal ControlPage 12 of 11
always a (or several) debit and a credit journal entry and the total on each side balances. Manual Journal Entry g A method to record an accounting transaction in the e nral l d . There ae 3 min typ sof ul j al : Online Journal (ONL), Spreadsheet Journal (SSJ) and End of Month Journal (EOM).
General Ledger Accounts Chapter 7 . . Setting Up the General Ledger Posting is the process of transferring information from the general journal to individual ledger accounts. . Posting Journal Entries to General Ledger Accounts Author: Den computer Created Date:
in both the Journal and the Ledger. A proper index should be maintained in the Ledger giving the names of the accounts and the page numbers. 3.4 RELATIONSHIP BETWEEN JOURNAL AND LEDGER Both the Journal and the Ledger are the most important books used under the Double Entry System of bookkeeping. Their relationship can be expressed as follows:
Aug 25, 2020 · Chapter 1: Setting Up General Ledger Use General Ledger Setup screens to set up accounts, options, and security authorizations that determine how General Ledger processes transactions and interacts with other Sage 300 modules. About Setting Up General Ledger After installation, you take the following general
General Ledger Account General Ledger Account DocumentsDocuments General Ledger Account Documents FI_GU_310 v10 2 Learning Objectives At the end of this course you should be able to: Explain the general ledger document parking process Create parked general ledger documents (JVs) Know how to display a parked document Know how to display a posted document
An account, or general ledger (GL) code, is a number used to record business transactions in the general ledger. Boston University stores every general ledger (GL) code in the SAP system. In this section you will find: 1. SPH GL Codes Short List . 2. General Ledger (GL) Coding Princi
fact ledger. A fact ledger is a ledger in that it is used to record information. The information that a fact ledger is used to record is facts. In my particular case I am interested in recording facts related to a financial report. But a fact ledger could be used to record a single fact, some set or sets of facts, or an
GL –Ledger Inquiry GL Ledger Inquiry is an online inquiry tool that shows information posted to the general ledger. Most journals in the general ledger are a combination of entries with various PCAs and journals are secured by chartfield security, which can not be accessed by all. Chartfield security is tied directly to your PCA access.
Aug 07, 2014 · General Ledger-Account Analysis and Drilldown Document ID: GL0040 Effective Date: 08/07/2014 Page 6 Finance/GAFR Enter Search Criteria- Ledger/Ledger Set Field The Ledger name defaults to Ohio University FMS and cannot be changed. Enter Search Criteria- Account From/To Field WARNING: THE SEARCH CRITERIA IS CASE SENSITIVE.
