OSU FIS 1107: Journal Vouchers

1107 Journal Vouchers

The purpose of a journal voucher (JV) is to process internal transactions and corrections between or within departments at Oregon State University (OSU). JVs are also used for transactions between OSU departments and other universities in the Oregon University System (OUS) or the Chancellor’s Office.

• JV’s involving only OSU Departments are created on form FGAJVCD in Banner.
• Inter-Institutional JV’s are processed centrally through the Business Affairs/Accounts Payable Office upon submittal of the approved Inter-Institutional Transaction JV (IIJV) form found on the OSCAR website.
• Budget JVs are used to move or transfer budget amounts between indexes or line items. These JV’s are initiated by an individual college or unit, the Office of Budgets and Fiscal Planning, or the Office of Post Award Administration (OPAA). Budget changes can only be made between indexes/funds within the same Fund Type.
• Manual encumbrance JVs reserve a future budgetary expense or clear encumbrance balances which did not liquidate in the payment process.
• Some "journal vouchers" are completed by an automated upload process and are not individually entered in Banner.

In order to produce meaningful financial reports, it is important that significant revenue and cost items are recognized during the month in which they occur and costs are reflected against the revenue-producing activity for which they were incurred. Therefore, journal vouchers should be processed in the month the activity happens.

Most Commonly Used Rule Codes (Journal Types):

3JV1 - Revenue/expense journal transactions * see below
3GNT - Correction to original document involving grant or contract ** see below
2ENC - Manual Encumbrance Establishment JV
2LIQ - Liquidate Remaining Encumbrances
2LQP - Partial Liquidation of Encumbrance
4ENC - Revenue/Expense JV with Encumbrance Liquidation
1xGF - Departmental Budget change (E&G only)
1PBB - Grant Budget Change (expenditure only)

* Use 3JV1 rule code:

• All original entries including internal recharge (no Banner document to reference)
• Distribution of costs (example: bulk purchases redistributed to others)
• Corrections not involving restricted funds -grants, contracts, gifts (Mxxxxx), OSU Foundation (FSxxxx, FExxxx, 438xxx, Agriculture Research Foundation (FAxxxx).

** Use 3GNT rule code:

• Corrections when one or both sides of the entry involve a restricted fund - grants, contracts, gifts (Mxxxxx), OSU Foundation (FSxxxx, FExxxx, 438xxx, Agriculture Research Foundation (FAxxxx).
• Transfer (9xxxx) account codes involving restricted funds.

Processing Rules:

Text is required on all Journal Vouchers. Text must contain sufficient information as to the purpose of the JV transaction, as well as, the name and phone number of the person inputting the JV. No text or the lack of clear information will cause the JV to be disapproved. For corrections involving grants and contracts (3GNT rule code), specific detailed information is required. See GCG Manual for these requirements.

Use the same rule code on all sequences of a Journal Voucher.

An Index must be entered whenever Operating Ledger revenue 0xxxx or expense 1xxxx through 9xxxx account codes are used. The Fund, ORG, and Program codes will automatically be populated when the Index is entered.

An Index must not be entered when General Ledger account codes Axxxx, Bxxxx, Exxxx, Fxxxx are used. In this case, enter only FUND, Account Code, and amount.

Use a D or C in the Debit/Credit indicator field, unless it is a budget JV. For budget JVs use + or -.

Explain in the Description field what the transaction is for. Do not simply enter "See Text." If more information is needed to fully understand the transaction than the space available, use the Text block.

If correcting a posted Banner document, enter the document number in the Document Reference field. Examples of the letter the document reference number will start with include:

F	Student A/R and Cashier Operations
I	Invoices
J	Journal Vouchers
JC	Telecommunications
P	Purchase Orders
VC	Chemistry Stores
VF	Facilities
VM	Transportation Services (Motor Pool)
VP	Printing and Mailing
VV	Veterinary Medicine
VX	Accounts Payable direct pay vendors
Z	Purchasing card distributions

 

The Document Reference field must be completed when the same account code is debited and credited, when redistributing amounts from one account code to another, and when adding or changing an activity code.  If there is no Banner document reference number, the reason must be stated in the text of the JV.

The Budget Period field is required if rule code/journal type begins with 1 (Budget JVs). The budget period field is 01 through 12. Do not complete the budget period field for other journal voucher types.

Some Journal Voucher Dos and Don'ts

• When preparing a JV involving meals or refreshments, supply the following information:

1. Who - Approximate number of people attending and who approved the purchase
2. What - Purchased or payment for
3. When - Date of the meeting
4. Where - Location of the meeting
5. Why - Purpose of the meeting

• Payroll transfers cannot be done on a journal voucher. This includes GRA/GTA Insurance and Recruitment & Retention payments. These transactions must be processed through Payroll by use of a Labor Distribution Form.
  
  
• Donations and contributions cannot be made from institutional funds. These include donations to the OSU Scholarship funds. JV’s indicating donations will be disapproved.
  
  
• Parking fines and book fines may not be paid from institutional funds. This includes parking fines assigned to state vehicles. Also, parking permits for individual employees whose duty station is OSU Corvallis campus may not be paid from institutional funds. JV’s for these will be disapproved.
  
  
• When distributing a cost from one index to another, use 3JV1 rule code. The debit and credit account code must be the same and equal the account code on the original payment. Document reference is the “I” document of the original invoice. Also, indicate in Text that this is a distribution of an original cost.
  
  Example: 20 boxes of paper were purchased to receive a huge discount. The department only needed 8 boxes. They “sell” (distribute) the cost of 12 boxes to the department down the hall. The original purchase was made using 20101 Office supplies account code. Redistribution is made using 20101 account code as both the debit and credit for 60% (12/20) of the original cost.
  
  
• OSU departments with E&G, AES, FRL, or Extension funds use 79xxx Internal Sales Reimbursements account codes as the credit when recharging costs to different indexes within OSU for established processes or services. Internal sales credits are not allowed on grant/contract, gift, endowment/endowment-match, E&G special project, or OSU Foundation/Ag Research Foundation pass-through funds. The JV should be completed by the charging department or unit, not the receiving department.
  
  
• Internal sales of self-support units/fund (Designated Operations, Service Centers, or Auxiliary Enterprises can only use 09xxx account codes as the credit on JVs. The JV should be completed by the charging department or unit, not the receiving department.
  
  
• When moving revenue (0xxxx account codes) the “F” document code must be given. This shows that the dollars came from an outside source. It is not allowed to change an income/revenue account code to an expense account code.

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1107-01 Doing a Correction

In the text include Name, Phone Number, and complete Justification for why the correction is necessary. The transactions should be corrected document-by-document, line-item by line-item, referencing the original banner document number.

Corrections should be completed within 90 days of the original charge. After 90 days, a detailed explanation is needed to state the reason the Journal Voucher was not done in a timely manner.

Salary/payroll transfers or corrections can not be done on a Journal Voucher. These must be made through the HRIS module.

When correcting charges involving grants, contracts, gift or foundation funds, use JV Rule Code 3GNT (see the Grant, Contract, Gift Accounting (GCG) Policy & Procedure Manual for specific instructions). To the maximum extent possible, cost transfers should be made within 90 days of the original charge. When the cost transfer is greater than 90 days, request approval from the Office of Post Award Administration (OPAA). Approval can be requested by including additional text with the appropriate justification to FOATEXT in your Banner journal voucher entry form.

When moving costs to or from a grant fund, be specific in the text of the journal voucher. Correction of errors – explain how the error occurred. When closely related work is supported by more than one funding source, a cost change may be made between those indexes provided it is a proper charge, the correction is timely and is supported by an explanation that it is the same project with the same principal investigator. If you have been notified by the Office of Post Award Accounting (OPAA) that the cost is unallowable on the grant and must be paid from state funds, indicate this in the text.

GRA/GTA Fee Remission (1095x) changes can not be completed by use of a Journal Voucher. All GRA/GTA Fee Remission transactions, including subsequent redistributions because of salary allocation changes, are required to go through Banner HRIS processes. Contact the Payroll Office.

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1107-02 Redistributing Procurement Card Purchases

Procurement card purchase redistributions are no longer completed by using a Journal Voucher. Beginning in 2006, the Banner procurement module was installed. See OSU Procurement Card policy for further guidance.

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1107-03 E&G funds Internal Reimbursement -- 79xxx Account Codes

79xxx account codes are used on Education and General Funds when the expense or activity includes several types of costs; e.g. testing includes salary/OPE, chemicals, and supplies. 79xxxx account codes should be used as the credit when charging out expenses to other indexes within a department or to other university units. Example: distribution of monthly copy charges to various departmental indexes – use account code 79107 as the credit and 24602 as the debit or charge. The 79xxx account codes are not to be used for correcting or distribution of individual transactions.

Effective 7/01/04 all funds use the 79xxx account codes for Internal Sales/reimbursement except Designated Operations (05xxxx funds), Service Centers (09xxxx funds), Auxiliaries (1xxxxx funds), and Agencies (9xxxxx funds). Designated Operations, Service Centers, and Auxiliaries are to use the 09xxx account code series. Agency funds use the 06xxx account code series.

See Recharge Policy 1403-01 for further details.

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1107-04 Service Center, Designated Operations, and Auxiliary Internal Sales -- 09xxx Account Codes

Use 09xxx account codes as the credit on 09xxx Service Center, 05xxxx Designated Operations, and 1xxxxx Auxiliary funds when the sale is internal to the University or other OUS institutions.

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1107-05 Income Account Codes on Journal Vouchers

Income account codes may only be used on journal vouchers when:

• Referencing “F” document numbers and correcting the cash deposit Index or Account Code
  Or
• Creating an internal transaction with the credit (income) going to an Agency fund 9xxxxx. Agency funds are not part of the University Financial Statement so they are considered an “outside” entity. Use an 06xxx or 08xxx account code for these transactions
  
  Do not use 79xxx or 09xxx account codes for these transactions.
  
  Example: When paying the conference fee for a university employee attending a conference that is financially managed in a 9xxxx Agency Fund, there would be a debit to 28601 Conference Registration on the department index and a credit to 06403 Conference Income on the Agency index/fund.

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1107-06 Inter-Institutional Journal Vouchers (IIJV)

An Inter-institutional journal voucher reflects a transaction between an institution within the OUS system. This may be a transaction between the Chancellor's Office and OSU, or between OSU and another OUS institution. These IIJVs are processed centrally by Business Affairs/Accounts Payable upon receipt of a completed Inter-Institutional Journal Voucher form.

Additional references

Year-End Processing
Internal Sales: FIS 200
Recharge Activities Policy: FIS 1403-01

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