Journals

15.2

Introduction

The purposes of journals are to correct errors, allocate/re-allocate costs across cost centres and accrue income and expenditure.

Journals facilitate internal accounting transactions and arise from the following sources:

• Manual input;
• Other modules of the Flinders Finance System/other systems;
• Standing or recurring journals;
• Salary journals.

Principle

Cost Centre Managers will process and post journals to allocate and/or distribute expenditure costs. Where the journal entries relate to the accounts of more than one faculty/section the journal will be authorised by each cost centre concerned and the journal processed (posted) by officers in the originating faculty/division. Salary journal forms completed at the cost centre will be forwarded to the Budget and Payroll section for processing.

Journals will be prepared in accordance with the relevant procedures outlined below and will be appropriately authorised. Each faculty/division is responsible for ensuring the accuracy of journal transfers and for retaining a file copy of all journals raised. A minimum value of $20 for journal transactions is recommended except in cases where entries are required for reconciliation of Balance Sheet accounts.

Procedure

15.2.1 Manual journals

Examples of manual journals include corrections to existing transactions, recharges or re-allocation of costs and accrual of income and expenditure.

15.2.1.1 A standard journal entry form will be required to support each transaction.

15.2.1.2 In the case of expenditure allocations and the transfer of costs, each journal will be supported by source document(s), signed by the originator and countersigned by a supervisor.

15.2.1.3 For correction of errors a journal form will be completed and signed by a supervisor.

15.2.1.4 Input and posting of manual journals will be the responsibility of the cost centre initiating the journal (the exception are those journals that cross faculty boundaries — these will be authorised by Resource Officers (or equivalent) in each area before posting).

15.2.1.5 Detailed instructions for the input and posting of journals are documented by, and available from, the FUST Office.

15.2.1.6 Journals are to be numbered in a standard format which enables identification of the area from which journals originate. Authorisation and where applicable cross-faculty authorisation on hard copy are to be supported by the printed names of signatories.

15.2.2 Journals from other modules of Oracle Financials/other systems

15.2.2.1 Each module of the Flinders Finance System generates journal transactions which are imported into the General Ledger. FUST Office will ensure that transactions are posted to the General Ledger on a daily basis.

15.2.2.2 Transactions from other systems (eg. Concept Payroll System) are imported via FTP. These journal imports are processed by the FUST Office.

15.2.3 Recurring journals

15.2.3.1 Recurring journals will be used to distribute expenditure costs that occur on a periodic basis (eg. photocopy charges, printing charges, telephone/fax charges).

15.2.3.2 A template will be set up by the cost centre to include account codes regularly charged and only the amounts will need to be input each time the recurring journal is run.

15.2.3.3 Detailed instructions for the setting up and posting of recurring journals are documented and available from the FUST Office.

15.2.4 Payroll Journals

15.2.4.1 Journals to transfer salary expenditure will be completed on a Payroll Journal form, appropriately authorised by the cost centre.

15.2.4.2 The journal will be forwarded to the Payroll Section for processing and posting.

15.2.4.3 A photocopy of the Payroll Journal Form should be retained by the cost centre.