1. Journal Entry Guidelines General Accounting Financial & Accounting Services May 08, 2013

2. Purpose Purpose: To provide guidance to the campus community on the steps necessary to prepare, support, approve, and submit the entries. 2

3. Agenda Introduction C-FOAPAL Journal Entry Form Supporting Documentation Approvals Submission to FAS Deadlines Questions Additional Information 3

4. Introduction Types of journals entries:  Standard  Recurring  Reversal  Correction  Allocation  Transfer Journal entries are used to record financial transactions into the general ledger. Transactions are summarized to create the financial statements for WFU. 4

5. Introduction Most common types of manual journal entries:  Corrections - Used to correct amounts and/or reclassify errors. - Amount posted to GL $132.25. Correct amount $123.25. - Reclass from Supplies (53010) to Housekeeping Supplies (53018).  Transfers – Move available funds from one fund/org to another. - Physics gives funds to Chemistry to co-sponsor guest speaker.  Allocations - Services provided by one department to another department. - Copy Center allocates charges to departments. 5

6. C-FOAPAL C = CHART CODE F = FUND CODE O = ORGANIZATION CODE A = ACCOUNT CODE P = PROGRAM CODE A = ACTIVITY CODE (OPTIONAL) L = LOCATION CODE (OPTIONAL) C-FOAPAL is the acronym representing each element of the chart of accounts. 6

7. Chart Code One character (alpha). WFU has four charts to organize financial information. - Chart R – Reynolda Campus - Chart H - Reynolda House Museum of American Art - Chart F – WFU Development Foundation (Where gifts of real property are held until sold) - Chart X – WFU Foundation (Transactions related to property on and in the vicinity of Deacon Boulevard) Each entity has its own tax ID number. Individual entities also needed for separate internal and external financial reporting. Activity Location Optional Required* ChartFundOrgAccountProgram C-FOAPAL 7

8. Fund Code 6 characters (alpha-numeric). The source of the funding. “Where” the money is coming from. Activity Location Optional Required* ChartFundOrgAccountProgram 8 Grants Investment Income Tuition and Fees Gifts

9. C-FOAPAL Examples: Activity Location Optional Required* ChartFundOrgAccountProgram FundDescription 111111Unrestricted PXXXXXPlant Fund RGXXXXGrants ERXXXXEndowment Restricted 9

10. C-FOAPAL Activity Location Optional Required* ChartFundOrgAccountProgram Organization Code 6 characters (numeric). Designates a department or a unit of budgetary responsibility. “Who” pays the expenses or receives the revenue of a transaction. OrgDescription 112201Human Resources 500005Provost’s Office 703001Athletics: Football 713002Stores: Deacon Shop 10

11. C-FOAPAL Account Code 5 characters (numeric). “What” type of transaction. Activity Location Optional Required* ChartFundOrgAccountProgram ClassificationAccount Range Account Example Account Description Example Asset1XXXX10010Cash Deposits Liability2XXXX20010A/P - Trade Revenue4XXXX40010Tuition Expense5XXXX53010Supplies Allocation7XXXX70011Allocation General Transfer9XXXX98010Trsfr in from Dept/Rest Funds 11

12. C-FOAPAL Program Code 2 characters (numeric). Not included on journal entry form. Located in Banner tables maintained by FAS. Used by FAS for required external reporting. Identifies the “purpose” or “function” of revenue and expenditures. The following are examples of the functional classifications: Instruction (10), Academic Support (25), Student Services (35) Activity Location Optional Required* ChartFundOrgAccountProgram 12

13. C-FOAPAL Activity Code 6 characters (alpha-numeric). Optional FOAPAL element typically used to track revenue and expenses for a special program or event. Can be used with multiple orgs or set up to be used with only one. Activity Location Optional Required* ChartFundOrgAccountProgram Activity CodeDescription U00011Commencement U00888Facilities and Campus U01103WFDD Membership 13

14. C-FOAPAL Activity Location Location Code 6 characters (alpha-numeric). Optional FOAPAL element primarily used with fixed assets to identify physical places or sites, such as buildings and room numbers. Used by facilities when projects cover multiple rooms in a building to segregate costs by room. Optional Required* ChartFundOrgAccountProgram Location CodeDescription L00176 Deacon Tower 1N107A FAS Office Reynolda 1st Fl-107A 14

15. Journal Entry Form Website: http://finance.wfu.edu/faculty-staff/financial-reportinghttp://finance.wfu.edu/faculty-staff/financial-reporting 15

16. Journal Entry Form Journal Entry Template 16

17. Journal Entry Form Example Journal Entry 17

18. Journal Entry Form Hash Total – Total debits plus total credits (formula). Used by FAS when keying journal entries. Preparer – Print name, signature, phone ext., and date. Approver - Print name, signature, and date. 18

19. Journal Entry Form Sequence No. – General Accounting uses sequence numbers when keying entries into Banner. If possible, do not skip lines when completing form or include lines with FOAPAL elements and zero amounts. FOAPAL (highlighted in orange) – Refer back to previous section on C-FOAPAL. 19

20. Journal Entry Form Debit/Credit Debits increase asset and expenses. Decrease liabilities and revenue. Credits increase liabilities and revenue. Decrease assets and expenses. Debits must equal credits. Enter debits and credits as positive numbers not negative numbers. Round 2 decimals ($1.334 = $1.33). Rounding formula: =round(A1,2) Line Description – Maximum 35 characters (character count formula after description). Should provide enough information for users to understand purpose. 20

21. Supporting Documentation All journal entries must be adequately supported by attached documentation that explains the purpose and supports the amount of the journal entry. Documentation may be in the form of a Cognos report, receipt, invoice, email, or some other record of the transaction. Do not include sales tax. If JE amount is a portion of invoice amount, show how amount was calculated. Note: Make sure supporting documentation is sufficient when sending JE form to FAS since it is required by auditors. 21

22. Approvals FAS will be reviewing approvals on all entries to determine if satisfactory authority has been established before recording the entry. If an approval is in question, FAS will contact the preparer to gather more information. In order to prevent delays in the processing of your entries, please make sure that your entries have sufficient approvals prior to submission. Examples of sufficient approvals include but are not limited to: Preparer's Supervisor Preparer's departmental Budget Officer Preparer's Department Head 22

23. Submission To FAS Journal entries must be approved prior to submission to Financial & Accounting Services (FAS). All journal entries should be sent to FAS located at University Corporate Center (UCC), attention to Ruth Smith. 23

24. Deadlines Journal entries must be received by Financial & Accounting Services by 5:00 PM on the 2 nd business day of the new month. All journal entries received after this deadline will only be processed if time permits. 24

25. Questions 25

26. Additional Information NameTitlePhoneEmail Jennifer KillingsworthManager, General Accountingext. 4088killinjl@wfu.edu Terri TysonAccountant, General Accountingext. 3205tysontl@wfu.edu Ruth SmithSenior. Accounting Coordinatorext. 5977smithrr@wfu.edu Freddy AcunaAccounting Coordinatorext. 5186acunafo@wfu.edu Kathryn HackworthAccountant, Fixed Assetsext. 4096hackwok@wfu.edu Jessica GorrellAccountant, Plant Fundsext. 6408gorrellj@wfu.edu For more information about Journal Entries, as well as, other useful tools, please visit the Financial Reporting website. Website: http://finance.wfu.edu/faculty-staff/financial-reportinghttp://finance.wfu.edu/faculty-staff/financial-reporting General Accounting Contact List: 26