2.  This presentation is designed to provide you information about Journal Entries  You can advance to the next screen at any time by hitting the forward arrow key  You can go back to the previous screen by hitting the backward arrow key  You can end the presentation at any time by hitting the Escape key TUTORIAL PRESENTATION

3.  A journal entry is the record of a transaction that is posted to the financial records in Datatel. Most often it is used as an adjusting entry for the reclassification of income or expenditure.  An adjusting journal entry is made after actual expenditure or income has been posted to an account.  For example, it can be used to move expenditure or income to another funding source, or it can correct a budget number error that occurred when the expenditure was charged or the deposit was made. WHAT IS A JOURNAL ENTRY?

4.  In the Datatel system, these entries are included in the “Actuals” total WHAT IS A JOURNAL ENTRY?

5.  The journal entry form is available on the Business Office website under Forms at: http://www.cabrillo.edu/internal/businessoffice/  Please use available forms provided by the Business Office. This simplifies data entry and maintains consistency. This form can be filled out using Excel or by printing out a blank form and writing in the information.  Journal entries and budget transfers share a common form, but the two transactions are mutually exclusive — in other words, check one box or the other. You cannot submit both a journal entry and a budget transfer on the same form. JOURNAL ENTRY GUIDELINES

6.  The journal entry amount should never exceed the available budget within that account. If there is not enough budget to cover the expenditure then a budget transfer should be submitted along with the journal entry. No journal entries will be posted to an account without available funding.  The Business Office will create new accounts that are necessary but do not currently exist; the journal entry/budget transfer will serve as authorization to open the budget number. JOURNAL ENTRY GUIDELINES

7.  Backup is required for all journal entries. Attach (please staple) copies of paperwork that clearly shows the expenditure or income being moved and why the transaction is necessary.  Usually, a Datatel printout of the account from where the expenditure or income is being moved is sufficient. Backup such as shadow book copies and emails are supplemental only and do not replace a Datatel printout. Datatel is the official database that stores the financial records of the college.  Since actual expenditures and income may have dollars and cents, journal entries can and should use exact amounts that include dollars and cents. JOURNAL ENTRY GUIDELINES

8.  A journal entry can be posted between funds 1X, 22, 33, 4X and 5X as long as the integrity of the object code (type of expenditure or revenue) is maintained.  A journal entry cannot be posted between funds 7X (Trust and Agency) and the other funds listed above as these funds are kept in a separate bank. To process entries between funds 7X and all others, a check request must be submitted. See the Check Request guidelines for more info at: http://www.cabrillo.edu/internal/businessoffice/ JOURNAL ENTRY GUIDELINES

9.  When moving expenditure or income, it is important to maintain the integrity of the TYPE of expenditure or income.  For example, if you are moving conference expense to another funding source, the conference object number needs to remain the same.  If moving FROM XX-0- XXXX-XXXX-552200-000 then must be moved TO XX-0-XXXX- XXXX-552200-000  If moving FROM XX-0- XXXX-XXXX- 523100 -000 then it should NOT be moved TO XX-0-XXXX- XXXX- 523200 -000 JOURNAL ENTRY GUIDELINES

10.  A very common question is: Q - Should the entry be a Debit or Credit? A - Ultimately, the sum of all Debits should equal the sum of all Credits. The next screens provide samples of how a debit or credit affects expenditure and revenue accounts. JOURNAL ENTRY GUIDELINES

11. For an EXPENDITURE Account: a DEBIT increases the Expense a CREDIT decreases the Expense The balance in an Expense account should be a DEBIT (non negative) otherwise it is overdrawn  Debit  Credit

12. For a REVENUE Account: a DEBIT reduces the Revenue a CREDIT increases the Revenue The balance in a Revenue account normally has a CREDIT (negative) balance  Debit  Credit

13.  The left-hand “TO/DEBIT” column is for the budget number that you would like to move the funds into.  The right-hand “FROM/CREDIT” column is for the budget number that you are moving the funds from. JOURNAL ENTRY GUIDELINES  Note: The DEBIT and CREDIT are opposite for Revenue accounts Object: 8xxxxx

14.  Each journal entry requires a description for data entry. This description can be up to a maximum of 28 characters. The Business Office Excel form will prompt you if this number is exceeded. JOURNAL ENTRY GUIDELINES

15.  Each comment corresponds to the budget number above it.  Journal entries will appear in Datatel detail reports with the code of JE for Journal Entry.

16.  The comment is the audit trail description that will remain PERMANENTLY in Cabrillo's financial records. Therefore, relevant information should be provided that will be as self-explanatory as possible. Ideally, anyone, now and in future years, should be able to understand what has occurred simply by reading the description.  Keep in mind that the hard copy records are stored away at the end of each fiscal year and may be difficult to locate in subsequent years. JOURNAL ENTRY GUIDELINES

17.  Below are examples of relevant comments:  Payroll: Name and pay date/range: Smith 1/31 P/R fr 175 P/R Jan-Mar fr FD 11 1 TU Silva FA12 10/19 Football-Garcia OT  Paid Invoices: Vendor name, voucher #, date paid, item: Dell V448482 2/5/13 Fr #859 Smartsheet subscrip Apple/Laptop V#440631  For journal entries, when possible, please avoid vague comments such as “from 194” or “reallocate”. JOURNAL ENTRY GUIDELINES

18.  The “NOTES” area at the bottom of the form can be used to write a more extensive explanation about the transaction for the Budget Officer and for the fiscal auditor. This information will not appear on Datatel budget reports.  Journal Entries require Administrative Approval from the authorized Budget Officer of the funds.  Submit the signed original form to the Business Office for data entry into Datatel. To save paper, keep an Excel online copy for your files.  Journal Entries are subject to audit approval by the Business Office before being officially entered into Datatel. JOURNAL ENTRY GUIDELINES

19.  This is the end of this learning module. For additional information about Business Office policies and procedures, please refer to the Business Office Guide located at: http://www.cabrillo.edu/internal/businessoffice/ http://www.cabrillo.edu/internal/businessoffice/ JOURNAL ENTRY GUIDELINES