ADMINISTRATIVE PROCEDURE

Adjusting/Correcting Non-Payroll Accounting Transactions on Non-Sponsored Accounts

A. Revenue

  1. Determine the type of transaction being initiated and if it is allowable

    Financial managers must align revenue with the appropriate activities. Under certain circumstances, an adjusting or correcting entry is appropriate and necessary to achieve this objective.

    Transaction type:

    • Correction of technical errors:For example, the wrong revenue account was credited. This error can be corrected by reclassifying or moving the revenue from the incorrect account to the correct account.
    • Redistribution of revenue among accounts receiving income for a common activity:In these situations, revenue associated with an activity is credited to one Chartfield String on behalf of others. This is generally done for efficiency purposes.  Portions of the revenue are then moved to the other relevant Chartfield Strings.

    Allowable Guidelines / Criteria:

    • Negative revenue must not be created. Revenue must be moved within the fiscal year it was originally recorded.
    • Fund restrictions must be rigorously applied. Some revenue is received and has restrictions placed on its use by the source (e.g., use of gift funds restricted by a donor).
    • Adhere to proper deadlines, accounting periods, and protocol when moving revenue:
      • Transactions must be processed within 60 days from when the original revenue was posted. If the deadline is missed, additional justification and approvals are necessary.
      • When moving revenue transactions from a prior fiscal year, the appropriate transfer accounts must be used.
  2. Initiate and prepare the transaction
    • Prepare and enter the journal entry in the general ledger to move the appropriate revenue source. The justification for the journal entry must be documented in the Header Long Description field of the journal entry, which includes the business purpose and answer the questions: who, what, where, when, and why.

    Refer to Job Aid: 
    Transaction Justification/Documentation Standards for All Non-Sponsored and Sponsored Transactions

  3. Obtain approvals
    • The general ledger will route the journal entry for applicable level of approvals.
    • Journal entries $30,000 or greater will also be routed to Accounting Services for central approval.
    • Sponsored journal entries require approval from Certified Approvers.
    • Imaging of back-up support in Perceptive Content or attaching documentation to the journal entry in the Enterprise Financial System (EFS) is required.

B. Non-Payroll Expense

  1. Determine the type of transaction being initiated and if it is allowable

    Financial managers must align expenses with corresponding revenues. Under certain circumstances, an adjusting or correcting entry is appropriate and necessary to achieve this objective.

    Transaction Type:

    • Correction of technical errors:For example, the wrong expense account was charged. This error can be corrected by reclassifying or moving the expense from the incorrect account to the correct account.
    • Redistribution of expenses/charges amongst accounts paying for a common activity:In these situations, expenses are charged to one Chartfield String on behalf of others. This is generally done for efficiency purposes.  Portions of the expense are then moved to the other relevant Chartfield Strings.

    Allowable Guidelines / Criteria:

    • Negative expenses must not be created. Expenses must be moved within the fiscal year it was originally recorded.
    • Fund restrictions must be rigorously applied. Some expenses recorded in unrestricted funds are not allowable in restricted funds.
    • Function code integrity must be maintained.
    • Internals Sales Organizations:Refer to Administrative Policy: 
      Selling Goods and Services to University Departments
    • To move an expense from a sponsored project (or to credit) to a non-sponsored account outside the budget/award period, notify the SFR accountant, as a revised report/invoice must be submitted to the sponsor with funds to be returned.
    • Adhere to proper deadlines, accounting periods, and protocol when moving a non-payroll expense.
      • Transactions must be processed within 60 days from when the original charge was posted. If the deadline is missed, additional justification and approvals may be necessary.
      • When moving expense transactions from a prior fiscal year, the appropriate transfer accounts must be used.
      • No original charges older than 12 months may be moved onto a sponsored project.
    • Refer to:Cost transfer approval matrix
  2. Initiate and prepare the transaction
    • Prepare and enter the journal entry in the general ledger to move to the appropriate expense account. The justification for the journal entry must be documented in the Header Long Description field of the journal entry, which includes the business purpose or explain the validity of the expense being charged to the project and answer the questions: who, what, where, when, and why. Transactions processed after the deadline must also include an explanation as to why it was not processed timely.

    Refer to Job Aid: Transaction Justification/Documentation Standards for All Non-Sponsored and Sponsored Transactions

  3. Obtain approvals
    • The general ledger will route the journal entry for applicable level of approvals.
    • Journal entries $30,000 or greater will also be routed to Accounting Services for central approval.
    • Journal entries that charge a sponsored project require approval from a Certified Approver.

Imaging of back-up support in Perceptive Content or attaching documentation to the journal entry in EFS is required. All journal entry documentation must be retained in either EFS or Perceptive Content.

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