 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

 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?

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

 The journal entry form is available on the Business Office website under Forms at:  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

 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

 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 s 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

 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: JOURNAL ENTRY GUIDELINES

 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 then must be moved TO XX-0-XXXX- XXXX  If moving FROM XX-0- XXXX-XXXX then it should NOT be moved TO XX-0-XXXX- XXXX JOURNAL ENTRY GUIDELINES

 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

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

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

 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

 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

 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.

 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

 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 V /5/13 Fr #859 Smartsheet subscrip Apple/Laptop V#  For journal entries, when possible, please avoid vague comments such as “from 194” or “reallocate”. JOURNAL ENTRY GUIDELINES

 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

 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: JOURNAL ENTRY GUIDELINES