Life Cycle of a Journal Entry

Life Cycle of a Journal Entry

Determine Appropriateness and Necessity

While most transactions can and should be handled through a subsidiary system (i.e. Payroll, Accounts Payable, Accounts Receivable, etc.) a journal entry into the GL can become necessary under specific circumstances. For example, a journal entry may be necessary to correct an error or to allocate charges that could not be allocated in the subsidiary system.

Gather Support

Once a journal entry is deemed necessary, appropriate support must be gathered and available for necessary approvals and reviews.  When completing the journal description field, if the journal entry cannot stand alone, journal support must be provided.  In the case of a journal to Sponsored Programs, support must always be provided.  Anytime support is available in addition to the description, it is recommended that it be added to the Imaging system by attaching it to the journal entry before posting.

Obtain Department Approvals

Many departments have specific procedures and internal controls for preparing and approving journal activity.  Internal department procedures should be followed in addition to the mandated procedures of Financial Operations and the University's Standard Practice Guide.  To determine if your department has specific procedures related to journal processing please contact your financial Unit Liaison, Department Manager or higher financial administrative authority.