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. Providing appropriate support for a financial transaction is an essential element of internal controls. There are two methods for supporting a journal entry, the journal header and line descriptions along with supporting documentation. Any time 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
Once it has been determined that the journal is appropriate for the Funds involved, it should be approved based on departmental and system procedures. Many departments have specific procedures and internal controls for preparing and approving journal activity. 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.
Processing a Journal Entry
There are specific training courses in My Linc to obtain access for processing your own journal entries. Once on the My Linc site, search on journal entry for a full list of courses about journal entry processing.
In addition, there are ITS job aids that provide step-by-step instructions on journal entry processing.