UNIVERSITY OF MASSACHUSETTS AMHERST
Journal Entry Guide
Published by:
Controller’s Office
August, 2016
Rev. Dec. 2017
TABLE OF CONTENTS
I. Purpose ................................................................................................................ 3
II. Gather Support .................................................................................................... 3
III. Departmental Approval........................................................................................ 3
A. Sponsored Project Approvals ....................................................................... 3
B. Non Sponsored Approvals .......................................................................... 3
IV. Appropriateness .................................................................................................. 3
V. Support a Journal .................................................................................................... 4
A. Hard Copy Supporting Documentation ..................................................... 4
1. Sponsored Chart strings ................................................................. 4
2. Non-Sponsored Chart strings ......................................................... 4
B.Journal Entry Descriptions .......................................................................... 4
1. Journal Header Description. ........................................................... 5
2. Journal Line Reference. ................................................................ 5
3. Journal Line Description .............................................................. 6
Appendixes
Appendix A Processing Restrictions. .................................................................. 7
Appendix B Speed Type / Account Code Fields ................................................ 8
Appendix C Amount field on Journal Line.......................................................... 11
Appendix D Explanation of Campus Funds ...................................................... 12
I. Purpose
This guide has been created to assist and provide standards for users with access to
journal entry workflow. Journal entry workflow is a PeopleSoft function designed to give
access to departmental users to make ledger corrections and various adjustments to non-
payroll ledger accounts utilizing the finance system security. The Journal Workflow Guide
makes reference to this document. Please use the both guides together when processing
journals using journal workflow.
II. Gather Support
Once a journal entry is deemed necessary, appropriate support must be gathered and
available for necessary approvals and reviews. The support is required so that an approver
or report user will be able to understand the purpose and necessity of the journal. When
completing the journal header description field, if the journal entry cannot stand alone with
a sufficient description on the screens, electronic journal support must be attached to the
journal. Journal entry support must be attached for all journal entries where either the debit
or the credit is to a sponsored project.
III. D epar t me n t Approvals
Many departments have specific procedures and internal controls for preparing and
authorizing journal activity. For purposes of this guide, all journal entries must have
electronic approval from the chart string manager or their approved delegate.
A. Sponsored Project Approvals
All departmental users who create a journal entry affecting a sponsored project
must complete the electronic journal entry version of the non-payroll cost transfer
form. The departmental user must obtain signatures from authorized PIs or their
approved delegates for the debit and credit side of the journal entry just as they
do when submitting a non-payroll cost transfer to research accounting for
processing.
The departmental user should attach the electronic version of the non-payroll
cost transfer form and a transaction page from either PS or Summit showing the
source of the amount to be transferred. Refer to job aid in Part B for non-
sponsored approvals.
B. Non Sponsored Approvals
If a departmental user does not have authorization to open a journal to process a
transaction resulting in a decrease in a chart string budget, the user must obtain
evidence that the proposed entry was approved by the authorized chart string
manager or their approved delegate. This can be in the form of a signature from
the chart string manager or their approved delegate on journal support, a memo
describing the entry or a printed journal report. The support must be attached
electronically to the journal support. See job aid for attachments.
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IV. Appropriateness
The University receives funding from many sources: tuition, state appropriations, the
federal government, private organizations, and gifts from donors to name a few. Fund
codes are used to group receipts from similar sources that are used for a specific
purpose. This structure allows the Controller’s Office to assist departments in ensuring
that the activity is recorded in the appropriate manner. As we determine the
appropriateness of transactions, it is important to recognize that we are always subject to
external review.
Each Fund has specific rules regarding what type of charges are allowable. It is important
to understand these rules before processing a journal entry into the GL. For example,
money restricted for scholarship funds by a donor cannot be used to pay for a new
computer. In addition, expenses should never be moved to a chart string with a
restriction on that specific expense.
Restrictions on non sponsored chart strings can be found on the Account Create form
used to set up the chart string.
V. Supporting a Journal
Providing appropriate support for a financial transaction is an essential element of
internal control. There are two methods for supporting a journal entry:
Hard-copy supporting documentation
Journal entry descriptions
A. Hard-Copy Supporting Documentation
Journal entries affecting a sponsored project chart string will always require hard-
copy supporting documentation attached to the journal entry. Supporting
documentation consists of a copy of Summit Report or UMGM7062, the electronic
version of the non-payroll cost transfer form and any other documentation to
support your justification.
Journal entries affecting a non-sponsored chart strings will not require hard-copy
supporting documentation unless your header description cannot appropriately
explain the purpose of the journal. Supporting documentation could consist of
copies of the UMGL7062 Detail Report, Summit Report and/or a memo requesting
or explaining the transaction signed by the principal investigator or his/her approved
delegate.
Note: Timeliness of Journal
For journal entries transferring a charge that originally appeared on a UMGL7062
Detail Report more than 120 days prior to the journal entry date; include an
explanation to justify why the adjustment was delayed (For sponsored projects
this is 90 days).
B. Sponsored Project and Non Sponsored Supporting Documentation
All support for entries involving both sponsored project and non-sponsored
chart strings must be kept on file with the departmental user.
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C. Journal Entry Descriptions
All journal entries are required to be supported by a complete description. The
descriptions should be complete enough for its review and approval. There are 3
types of descriptions:
• Journal Header Description (254 character maximum)
• Journal Line Descriptions (30 character maximum)
• Journal Reference (10 character maximum)
1. Journal Header Description/Journal Header Reference
• The Journal Header Description (or long description)
should completely describe the transaction being
processed and should indicate why the journal entry is
necessary. The text of the description should contain:
o What is being transferred/corrected
o Where it is being transferred
o Why the original transaction(s) was incorrect if applicable
o A reference to applicable supporting documentation if necessary
a) Code to Explain Purpose
When creating a journal entry, it is recommended to use one of the
following keywords to identify the type of journal entry:
1. Reallocation - used when moving expenses to a different Chartfield
combination
2. Correction - used when correcting erroneous chartfield values
3. Reverse - used when reversing a previous journal entry that was
created in error.
4. Cash Transfer / Allotments– Used to move cash across fund groups /
Chart strings (i.e. Unrestricted to Plant (Transfer) or RTF% to RTF%
5. Intra fund Allotment).Intra Fund Allotment is used to move cash
within the same fund group as well as with in the same fund.
6. Inter Fund Allotment is used to move cash within the same fund group
but across different fund codes (i.e. RTF allocable to RTF%).
An example of an appropriate journal header description is illustrated
below: “Correct expenses on ST 131999 to the appropriate chartfield (ST
123456). Incorrect Project/Grant charged due to data entry error.”
What is being transferred/corrected? = Correct expenses
Where it is being transferred? = appropriate Chartfield (ST
123456) Why was it incorrect? = Due to data entry error
Journal Header Reference - It’s recommended that you add the name of the person
requesting the journal here. This will not appear on the UMGL7062 report.
2. Journal Line References - The Line Reference provides specific system
reference identifiers back to the original transaction. Please use the table below
for the proper reference ID to insert on the Journal Reference Line. For example,
if you are correcting a deposit, a transaction with a CR source code, please use
the Journal ID in the Reference field. It is open for your use when processing a
cash transfer or allotment.
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Type of Transaction Source Use as Reference ID
Deposit CR Journal Entry ID
Voucher (PO Voucher or
AP, PCD Voucher ID
Procard)
Expense Reimbursement EX Report ID
AUX, FPD, FUL, MAL, OCS,
Recharge OIT, PLT, RCG, RHG, TEL, Batch ID
UCD
Journal Entry GA, GC, WF2, ALO Journal Entry ID
Not Applicable
Cash Transfer/Allotment Requestor’s Name
3. Journal Line Descriptions - Line descriptions provide additional information
related specifically to individual journal lines. In addition, each line description must
relate to the journal header description. Journal Line Description appears on the
UMGL7062 so getting in as much description for the report viewer is especially
important here. The following guidance is provided to assist with preparing journal
line descriptions:
Please use the following as a guide for your Line Descriptions
Describers
Reallocation XTFR Used when moving expenses to a different Chartfield combination
Correction COR Used when correction erroneous chartfield values
Reverse RVS Used when reversing a previous entry that was created in error
Transfer/Allot TRF Used to move cash across fund groups (I.E. Unrestricted to Plant)
An example of an appropriate journal line description is illustrated below:
Move Accounts Payable Voucher (X0297658) to another chart string in your
department in the amount of $4.77.
Your Journal Reference Line will look like this: “X0297658”
Your Journal Line Description should something like: “XTRF- 8/01-Office Max”
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Appendix A
Processing Restrictions
Please review the following restrictions on chart strings when entering journal entries. Any of
these conditions will result in an entries being denied.
State Funds
It is never appropriate to include a state fund chart string in any journal entry. State funds
begin with a ‘1’.
Payroll Account Codes
Account codes related to payroll or fringe (Subsidiaries AA, CC or DD) cannot be included in a
journal entry without Controller’s Office pre-approval. Also, there should be no adjustments
made to account code 786220/786225 Health Insurance Program or 786900/786910 Rchg
Benefit Program (Curriculum Fee Waiver Charge) without Controller’s Office pre-approval.
Cash Account Codes (110000 or 110001)
Account codes for cash, such as 110000 or 110001, should never be included in a journal
entry. The system automatically makes an entry to adjust the cash on each chart string. See
example in Appendix B.
Control Account Codes
There are a number of accounts that reconcile to detail in a subsystem table such as Accounts
Payable and Accounts Receivable. The following accounts should never be included in a
journal entry:
130000 A/R Grants and Contracts
132000 A/R Students
160000 Suspense
164000 Payroll Suspense
210000 Accounts Payable Trade – System
Fund Balance Account Codes
Account codes that begin with the number three should never be included in a journal entry.
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Appendix B
Speed Type field
Operators should always use the Speed Type field when entering a journal. The speed type
brings the Fund, Dept ID, Program code, Project and class code (if applicable) fields into the
journal line. With the exception of the Class code, none of these fields should be altered.
****When a Project ID is part of a chart string, you are required to insert an additional
field that is related to the project. The input to the field below is always as follows:
AN Type =“GLE”
Account field
When reallocating, correcting or reversing a transaction the nature of the actual expense,
deposit or asset/liability should always match the account detail of the journal. For example, if
reallocating or reclassifying an expense originally recorded as a service in subsidiaries HH or
JJ, the adjustment should only be moved to the same account code in subsidiaries HH or JJ
where it was originally booked unless the account code was initially keypunched in error
through Accounts Payable or a recharge center.
A journal should never be used to change the nature of a transaction.
Cash Transfers / Allotments
Use the table on Appendix D for the Account code when moving cash.
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Appendix B (Continued)
Account Codes for Allotments and Transfer
• Transfer – Used to move cash across fund groups (i.e. Unrestricted to Plant).
• Allotment – Used to move cash within the same fund group (i.e. Plant to Plant or
Unrestricted to Unrestricted)
Intra Fund Allotment is used to move cash within the same fund codes.
Inter Fund Allotment is used to move cash within the same fund group but across
different fund codes.
Transaction Description Move Debit/ Account
Cash (Credit) Code
Transfer A. Non Mandatory cash transfer to Repair and Repl. From Debit 597800
(Plant)
from Unrestricted/Restricted Current fund. To Credit (491800)
B. Mandatory cash transfer from Unrestricted fund. From Debit 587100
To Credit (481100)
Allotments A. Cash allotment to/from another Unrestricted fund From Debit 591000
To Credit (491000)
B. Cash allotment within the same Unrestricted fund. From Debit 491000
To Credit (491000)
C. Cash allotment to/from another Gift fund** From Debit 593000
To Credit (493000)
D. Cash allotment to/from another Plant fund From Debit 597000
To Credit (497000)
E. Cont. Prof. Educ. Funds - Prior year adjustments From Debit 592010
only.
Cash allotments to/from CPE/CEI unrestricted funds. To Credit (492010)
F.1 RTF Allocable (52129) & RTF% (52132) Funds From Debit N/A
Cash allotments to/from RTF unrestricted funds. To Credit N/A
F.2 RTF% (52132) & RTF% (52132) Funds From Debit 491000
Cash allotments between RTF% unrestricted funds. To Credit (491000)
G. CEI Funds only (51086) From Debit 491200
Cash allotments between CEI unrestricted funds. To Credit (491200)
H. Faculty Start Up (FSU) Funds only (51344) From Debit 591100
Cash allotments to/from FSU unrestricted funds. To Credit (491100)
I. Faculty Start Up (FSU) Funds between (51344) From Debit 591200
Cash allotments between FSU unrestricted funds. To Credit (491200)
J. Research Start Up (RSA) GOF to (51231) From Debit 591000
Cash allotments from GOF (51342) to (51231). To Credit (491000)
K. Restricted Gift Fund (53500) to Faculty Start Up From Debit 591000
(FSU) Fund (51344)**
Cash allotment from gift to FSU. To Credit (493000)
**Faculty Start Up (FSU) chartfields may be funded from gift funds (fund 53500) with a restriction to
support the general activities of the department. The cash transfer should happen only after the
expenses in the FSU exceed the amount of the transfer.
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Appendix B (Continued)
Account Codes for Allotments and Transfer (Continued)
General Rules
• Auxiliary Enterprise Funds - Inter Fund Allotments are not allowed to/from Auxiliary
Enterprise revenue funds unless prior approval has been received by the Budget Office.
• Non State General Operating Funds - Inter Fund Allotments are not allowed
to/from/between non state General Operating Funds (GOF or Revenue Based Budget
revenue funds) unless prior approval has been received by the Budget Office. It is
never appropriate to make transfers or allotments to/from/between state funds.
• Sponsored Projects - No cash should be moved in, out or between sponsored grants.
• **Gifts - Cash may only be moved between gift chart strings when the cash is moved
from a gift chart string with a broad restriction into a gift chart string with a more narrow
restriction that would still satisfy the intent of the donors of the gift chart string where the
cash is coming from. As an example, an intra-fund allotment from Department A’s gift
chart string restricted to expenditures that support Department A would be appropriate
when moved to a gift chart string for a sub department, Center B, within Department A’s
area. However, an intra-fund from Center B to Department A would not be appropriate
since Center B’s restrictions are more defined and could not be mingled Department A’s
funds where the restrictions are much broader.
Intra fund allotments are not appropriate between departments, dean’s areas and
centers.
• Agency - Cash Transfers should not be made to/from Agency funds.
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Appendix C
Amount field on the Journal Line
Operators should be careful inputting amounts in the Amount field of the journal. When using a
positive number (a debit) in the Amount field the system will automatically reduce the cash
balance of the chart string. Similarly, when using a negative number (a credit) in the Amount
field the system will automatically increase the cash balance of the chart string. Please see
below for illustration.
Debit to Credit to
Revenue/Expense/Transfer Revenue/Expense/Transfer/
/Allotment account code Allotment account code
Effect on Cash
DECREASE INCREASE
Balance
Effect on Fund
DECREASE INCREASE
Balance
Example
Journal entry to move a Procard transaction from ST 131999 to ST 123456.
SpeedT PC An
Account Fund Dept Prog Class Project Act. Amount Ref. Journal Line Description
ype Bus Type
R/A-11/02/09-BIG Y MAT L
123456 736699 51342 A011400000 A01 37.09 03017774 CON565
R/A-11/02/09-BIG Y MAT L
131999 736699 52132 A011400013 A01 -37.09 03017774 CON565
In this example, the cash in ST 131999 is increased and cash is decreased in ST 123456.
The cash entries are automatically inserted into the journal after the journal is posted. Below
please see the same journal as above after the journal has been posted.
Speed PC An Journal Line
Account Fund Dept Prog Class Project Act. Amount Ref. Description
Type Bus Type / -11/02/09-BIG Y
RA
123456 736699 51342 A011400000 A01 37.09 03017774 MAT'L CON565
R/A-11/02/09-BIG Y
131999 736699 52132 A011400013 A01 -37.09 03017774 MAT'L CON565
110000 51342 A011400000 -37.09 Cash
110000 52132 A011400013 37.09 Cash
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Appendix D
Explanation of Campus Funds
Unrestricted Restricted
(Current) Plant Other
(Current)
GOF State Fund Research R&R Loan
Revenue Based* Gifts Capital Gifts Agency
Research Trust Endowment Construction Endowment
Funds (Payout) Projects (Principal)
Funding Sources
Tuition & Fees Funding Sources Funding Sources Funding Sources
Room & Board Grants Transfer from Investment
Sales and Gifts Current Fund Earnings
Service Endowment Capital Gifts Endowed Gifts
State Approp. Earnings Debt
Overhead
Recovery
Interest
* Includes Auxiliary revenue based funds
Unrestricted Current Funds: Includes all funds received for which an external agency,
individual or entity has not specified the purposes for which they should be expended.
Restricted Current Funds: Includes funds available for financing operations, but which are
limited by donors/external agencies to specific purposes, programs, or departments.
Plant Funds: The plant fund group is used to record acquisition of assets, replacement of
assets, pay off debt, and record the investment in assets (equity).
Endowment: The endowment fund group is used to record donations to the University
which require that the principal is invested and only the investment income is expendable.
Investment income earned on these funds is returned to the campus and expended in the
current funds group.
Loan: The loan fund is used to record activity on funds available for loans to students,
such as Student Financial Aid Loan Fund and Perkins Loan Fund.
Agency: The agency fund is used to record funds held by the University for outside groups
who have a close relationship with the University. It is important that activity in agency
funds is kept separate from University activity. When conducting business using an agency
accounts the organization should not represent themselves as conducting University
business.
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