Journal Vouchers
Journal Vouchers (commonly referred to as “JVs”) are
non-cash transactions used to process accounting entries within Banner.
Journal vouchers are typically processed and/or generated by departmental
users, Banner modules, or feeder systems. JVs are considered to be
“non-cash” transactions since they do not affect the overall
cash balance within the University of Illinois System.
For example, if a unit processes a JV to reclassify an expense from one
C-FOAP to another, there is no movement of cash into or out of the
University of Illinois System. While the Claim on Cash balance
within the funds involved in the JV may change, the overall cash balance
within the U of I System remains unaffected, as it is an accounting entry
internal to the U of I System.
As outlined within
Section 13.3, Journal Vouchers
and the
Business and Financial Policies and Procedures, units must ensure that all JVs are processed accurately and on a timely
basis. This helps ensure accurate reporting for the University of Illinois
System’s audited financial statements.
Access and Training
All new users must complete the
Journal Voucher Processing Certificate Track
(which is a self-paced, online training program) before they are granted
access to process JVs by their Unit Security Contact (USC). This track
demonstrates how to prepare, process, and review JVs. It also covers best
practices to follow when creating a JV, and where to find resources
related to JV transactions.
Note: We also strongly encourage those who already have
JV-processing access to consider taking this course as a refresher as
well, as you may learn something new!
There is also an instructor-led training series on
Journal Voucher Processing
if you would like training in addition to the certificate track.
See the information and resources in the following sections below for
further guidance. While this is not a complete list of the information
that you will need to know when processing or reviewing JVs, it provides a
good starting point.
Tips for Properly Processing Journal Vouchers
In order to ensure accurate, timely JVs that will create a clean audit
trail, we strongly encourage you to follow the good business practices
listed below when processing JVs:
Record JVs in the Correct Fiscal Year and Accounting Period
It is important to ensure all JVs are recorded in the fiscal year
and accounting period (i.e., month) which properly represents when
the transaction occurred. This will help ensure accurate and timely
financial reporting.
Provide Clear Documentation for JVs
It is important to provide clear documentation within the JV to
properly communicate the purpose of the entry. By doing this, you
help ensure that anyone who reviews your entry (such as an auditor
or your supervisor) can get a full picture of the reason the JV was
processed. The FOATEXT (General Text Entry) page within Banner should be fully completed with the following
information for each JV:
-
A detailed description of the accounting transaction being
recorded, including any relevant information that may be helpful
in creating a proper audit trail for the transaction (such as the
original Banner document number of a transaction which the JV may
be adjusting or reclassifying).
-
Applicable contact information (i.e., name, e-mail address, unit,
and 10-digit phone number).
Description Line
The Description Line on each sequence of the JV should provide a
clear explanation of the transaction.
Example #1: When processing a JV to reclassify an
expense from one C-FOAPAL to another, the
Description Line on the credit sequence of the JV should
include the Banner document number of the expense being
reclassified, while the Description Line on the debit
sequence should clearly explain the nature of the goods or services
that were purchased.
Example #2: When reversing an erroneous JV that was
previously completed, it is helpful to include explanatory text such
as “To reverse J1234567” in the
Description Line so that the reader can easily tell that
the purpose of this JV was to reverse a previously completed JV.
Process a Separate JV for Each Unique Accounting Transaction
It is important to use separate JVs for separate types of entries.
That way, each JV accounts for its own unique transaction and is
separate from other unrelated transactions which can better aid in
the identification of the JV’s purpose.
For example, if you identify a misclassified transaction during your
monthly reconciliation which needs to be reclassified to the correct
C-FOAP, you need to complete the expense reclassification entry on
its own unique JV, as opposed to including it with a JV intended for
a different purpose (such as a JV to bill your internal customers
for services provided). That way, each JV has its own purpose and
its own story within the FOATEXT.
Correct Journal Voucher Errors
To provide a clean audit trail when correcting an erroneous JV that
was previously recorded, follow the steps below:
-
First, complete a JV to reverse the erroneous entry from the
original transaction.
-
Then, process another JV to post the entry correctly. This will
help ensure a clean audit trail in case the JV containing the
erroneous transaction is ever selected for further review.
Ensure JVs are Only Used to Record Allowable Transactions
Unit-generated journal vouchers should not be used to complete
certain types of transactions, such as those listed below:
-
Unit-generated JVs should not be used to process budget
adjustments for state funds or institutional funds (such as
indirect cost recovery, administrative allowance, or royalty).
Budget adjustments for these funds should be processed by the
applicable university budget office instead. Refer to
Section 3.1 (Adjust a Budget)
within the Business and Financial Policies and Procedures for
further details.
-
Unit-generated JVs should not be used to process labor
redistributions that transfer payroll expenses from one C-FOAPAL
to another. Refer to the applicable
Labor Redistribution Job Aids for further guidance.
-
Unit-generated JVs should not be used to issue any type of
payments to custodial funds. These payments should be issued via
the appropriate payment method instead (e.g., Emburse Enterprise,
purchase orders, etc.).
Be Aware of Banner Approval Queues
While most JVs post to Banner without a second level of review, some
JVs must receive an extra level of review and approval via a
Banner Approval Queue prior to posting. The purpose of
these approval queues is to have an extra layer of review on
higher-risk transactions, so that a third party can review and
approve (or disapprove) the entry. This helps add an extra layer of
protection to ensure the entry is appropriate.
Examples of JVs that must go through a Banner Approval Queue are:
- Most JVs involving grant funds.
-
Certain types of fund transfers on certain types of funds (such as
self-supporting and gift funds).
- JVs which have a Document Total exceeding $2,000,000.
Correct Any JVs That Fail to Pass Cross-FOAPAL Validation Rules
The final layer of review and approval which JVs must pass before
posting to Banner are the cross-FOAPAL validation rules. These rules
have been put into place to help enforce various types of accounting
and technical guidelines that all JVs must abide by. If any of your
JVs fail to pass these rules, you will be contacted asking to either
fix the applicable error or to delete the JV. See below for a few
common examples of errors that will cause a JV to fail the
cross-FOAPAL validation rules:
-
JVs using an invalid combination of C-FOAPAL segments, such as a
JV using a revenue account code on a gift or Indirect Cost Recover
(ICR) fund, or a JV trying to use a generic (i.e.,
“19nnnn”) program code with a state or ICR fund.
-
Trying to use a payroll expense account code (i.e., an account
code starting with a 2nnnnn) on a JV.
-
Trying to complete a JV containing multiple debits and credits
without using the proper 125 or
175 rule code.