1. Journal Entries Actual Transactions & Batch Reference ID's
Controller’s Office
Training Presentation
Updated As Of February 2014
Today’s session is on DMAS and we will cover important highlights of this accounting system. We realize that there may be different levels of DMAS use in this class. Most of you are beginners, some have been using DMAS but really never had training from the Controller’s Office and some of you are here for a refresher and to pick up some new information. Some of you may just deal with BERF’s, purchase orders, etc and we will cover how to maneuver around the DMAS screens to view this information.
Let’s go ahead and have you introduce yourself – your name and department and how long you have been using DMAS and what you expect or would like to pick up from this class.

2. What You Should Know Before Preparing a Journal Entry
What is a transaction and what fields does it contain?
What is the purpose of a Batch Reference ID?
What is the purpose of a Journal Entry and what procedures should be followed?

3. Three Types of Transactions Found In Your Accounts
These are shown as a systematic yearly feed dated 06/01
Some accounts may include budget revisions during the fiscal year
Budget transactions
Journal Entries, wire transfers (EFT), A/P – DEGA, cash disbursements and cash receipts are examples of actual transactions
Actual transactions
These are used to decrease the free balance of an account
They can reflect a commitment for which payment has not been made
They can reflect a commitment for indirect costs
They limit expenditures to a specified level either authorized by the sponsor or determined by the university
Encumbrance transactions - (also called Commitments)
There are 3 types of dollar transactions that you will find in your accounts.
Actual - revenue transactions, accounts payable payments – really these are your audit trail transactions
Encumbrance – commitments - these two words are interchangeable you may see them used both ways
Soon we will talk about the various fields found in a transaction.

4. Transactions in Your Accounts Contain The Following Fields
Transaction code
Debit/Credit account and sub-object
Reference 1 and 2
(7 characters)
Date
Description
(20 characters)
Amount
Indicator
D (debit) or C (credit) or left blank to default
P/F/N – partial, final or no liquidation of commitment
Batch # -includes subsystem or individual employee’s 3 digit ID
A transaction is made up of a series of fields as seen here.
Let’s review these which you have probably seen in DMAS or on the journal entry forms. All transactions are consistent in that these fields are a constant.
This could also be left blank on the next screen and trainees would basically fill in the blanks. Or could do a multiple choice – which one of the following is not a field in a transaction.
THIS WOULD BE A GOOD PLACE TO INSERT SOMETHING INTERACTIVE.

5. Transaction Codes
You will find them on journal entry forms and in the first column of the Account History Detail screen in DMAS.
For a complete listing and explanation visit the General Accounting section of the Controller’s Office website
these are the three digits that identify the type of transactions in your accounts
Transaction Codes
Budget – 020 to 029
Actual – Cash Receipts to 039
Actual – Cash Disbursements to 049
Encumbrance – 050 to 059
Actual – Journal Entry – 060 to 069
The 3 digit transaction code tells you much. Here are the different groupings for these codes.
It is important that you know if you are working with a Budget, Actual or Encumbrance transaction.
You can find the codes on our Controller’s Office web site as follows:
UM Home > Controller's Office > GENERAL ACCOUNTING > Accounting System Transaction Codes

6. Batch Reference ID Field
Batch reference initials identify the individual or sub-system that originated a transaction
Controller’s Office web-site General Accounting section contains a current listing of all authorized ID’s and their contact information
Batch reference numbers are used on budget, actual and encumbrance transactions
The last three digits typically correspond to the transaction code. For example, journal entry transactions would start with a 6
The Batch Ref Id also tells you a lot about the transaction. Namely who originated it so you can follow up with the individual or sub-system representative if you have further questions. Notice that I bolded
and capitalized three key words – individual , sub-system and originated.
A current listing is found on our web site. How many of you currently have an ID?
Let’s take a look……… go to Batch Ref List via the Controller’s web site Let’s find some of your ID’s.
Let’s discuss the forms at this point that are found on Controller’s web site.

7. FRS Batch Reference Number
Required field
To be included on all journal entry forms, wire transfers and international drafts
Six digit alpha numeric which includes the following:
3 digit Batch Reference ID followed by:
3 digit number starting with first digit of transaction code
Examples:
ACX625 journal entry
(JE transaction code starts with 6)
JLS429 Cash Disb
(Cash Disbursement transaction code starts with 4)

8. Journal Entries - Non Salary
Individual submits JE & Batch Control Form (with Batch Reference ID) and upon review they are entered real time into FRS by the Controller’s Office or Medical Finance
Always attach explanations and supporting documentation including approvals
Journal entries are used to modify totals in the respective accounts
Review and become familiar with Financial Policies & Procedures B016 Journal Entries found in the Controller's Office web site and copied on the next slide
Form FA11 is to be used only when Sponsored accounts are involved
The Journal Entry (JE) form is found in the Controller’s web-site Forms
Let’s talk a bit about Journal Entries.
Note that we specified NON SALARY.
Salary journals follow a whole other procedure including routing and approvals.
Supporting documentation includes approvals
Entered real time in FRS – by Controller’s Office and Medical Finance

9. Journal Entry Policy B016-page 1
UNIVERSITY OF MIAMI
FINANCIAL POLICIES & PROCEDURES
 JOURNAL ENTRIES        B016
PURPOSE
A journal entry is used to record accounting transactions in the accounting system. Journal entries are used to (1) record original transactions in the accounting system, (2) correct previous entries recorded in the accounting system, (3) move transactions from one account to another, or one sub object to another, (4) accrue expenses, (5) defer revenue, (6) fund accounts via transfers, (7) record budget adjustments, and (8) record encumbrances and their liquidation.
 POLICY
All journal entries must contain adequate documentation, and must be approved by the department supervisor or designee, and are subject to review by the Controller's office. 
The Director of the General Accounting Unit of the Controller’s Office may authorize certain types of journals to be submitted without supporting documentation. In these cases, the Controller's Office review is limited to completeness of the entry, proper use of the S/L and G/L accounts with the corresponding sub objects, and proper approval and review of certain sub objects by a responsible designated individual or department.  The Controller’s Office will review supporting documentation for such journals on a random basis by performing on-site reviews. Departments must maintain the supporting documentation for a period of seven (7) years. A department failing to maintain proper supporting documentation will lose the privilege of submitting entries without documentation. 
The Budget office approves journal entries revising budgets.
PROCEDURE
Journal Entry Form
Journal entries are entered in the accounting system through the use of specific forms coded by type of transaction as follows:
Simple Journal Entry – records and/or adjusts actual amounts in the accounting system and requires a debit entry and a credit entry in a one-to one relationship.
Compound Journal Entry – records and/or adjusts actual amounts in the accounting system.  The number of debit entries do not equal the number of credit entries. However, the total amount of the debits must equal the total amount of the credits, a one to many relationship.
Miscellaneous Accounting Input – is used to record cash receipts, cash disbursements or encumbrance adjustments. Cash receipts and cash disbursement require only either a debit or a credit entry. The accounting system automatically records the other side of the entry by either debiting cash or crediting cash depending on the transaction. In the University’s accounting system, this is known as an indirect update. Encumbrances and encumbrance liquidations/adjustments are one-sided entries that do not affect actual amounts, but record commitments incurred by the University for faculty and employee salaries, benefits, and goods and services purchased.
Budget Input - adjusts the budget amounts.
Bank Transfers - generally used by the Treasurer's office or the Controller's office to record wire transfers.

10. Journal Entry Policy B016-page 2
Accounting Transaction Coding
Document reference fields differ from one type of journal to another, i.e., check #, BERF #, check requisition #, Purchase Order #, etc. Please contact the General Accounting unit of the Controller’s Office for explanations on how these fields are used or attend a Financial Record System (FRS) training session.
Supporting Documentation
All journal entries together with adequate supporting documentation must be submitted and retained in the Controller's office. The only exceptions are those departments authorized by the Director of General Accounting to retain the supporting documentation, or those journal entries that enter the accounting system through a subsystem as specified in Appendix A at the end of this policy. The journal and its supporting documentation constitute the University's official record of a transaction and must contain sufficient description or explanation to adequately describe the transaction to an auditor or other outside party.
Format
Journal entries should be submitted in the proper format, as follows:
Use a standard form (size 8-1/2X14) provided by Materials Management or a computer reproduction.
Using an adding machine, add the amounts of the entries and produce a hash total. Staple the adding machine tape to the right hand side of the original journal. If the form used is a computer form, ensure that the hash total includes all the rows of the journal entry.
Staple back-up documentation for the entries behind the journal form.
Each journal submitted to the Controller's Office must balance (debits equal to credits).
Journals must be approved by department heads or other authorized personnel before forwarding to the Controller's office for input or storage.
Journals are to be prepared in BLACK or BLUE ink. Whiteout and erasures should not be used. When an incorrect entry or amount is entered, it should be crossed out, initialed and entered in the following line.
All journals must be accompanied by a Batch Control Form (see below). Blank copies can be obtained from the Controller’s web page at and click on Forms.
Batch Control Form
The batch control form requires the insertion of a unique batch identification number and data totals to assist in the verification of the data entry function.  The batch identification consists of six alphanumeric characters which identify the individual or the subsystem originating the transaction.  The data totals consist of a batch total count representing the number of accounting transactions in the batch and a hash total on the dollar amounts from the accounting transactions.
The originator of the batch is responsible for filling in the batch identification, the batch count total, a short description of the entry, and the hash total.  The Controller's Office is responsible for completing the data entry portions of the form to identify the data entry person, the date entered in the accounting system, and time completed, and to verify the system batch total amount and count to the manual information entered by the originator. The Medical Finance Office performs a similar verification function as it inputs Medical School entries.

11. Summary
The presentation covered what you should know before preparing and submitting a Journal Entry for data entry into FRS
You should know what types of transactions are found in accounts and what fields do transactions contain
Recognize that the Batch Reference ID field helps users identify where a transaction originated
Use the proper JE forms with appropriate explanations and supporting documentation including approvals
Follow the guidelines found in Journal Entry Policy B016

12. Thank You for Reviewing this Controller’s Office Presentation
Please Visit our Website:
for Additional Information
I thank you very much for participating in today’s session and we will open up the floor for any remaining questions you may have.
Also, if you have very specific or confidential questions then you may us or call us at the Controller’s Office.
Questions………..
Thank you all once again. We hope you enjoyed your training experience and learned much about our financial systems.