Periodically, it is necessary to process a journal entry to adjust or correct a previously recorded transaction or to record a miscellaneous internal transaction such as interdepartmental transfers. All departments should check budget availability before requesting a transfer.
Accounting Errors and Expense Transfers
When the need for a journal entry has been identified by a department, they should provide a requisition, email or memo to the designated accountant within Financial Services responsible for processing transactions for the fund type(s) to be impacted (reference the Chart of Accounts document for identification of these individuals by fund type – restricted, unrestricted – and fund number). The requisition/email/memo should include a reference to the initial transaction (if applicable), the date that it was processed and the account number it was posted to. A justification for the entry must be given (wrong subcode used, etc). If more than one department will be affected by the adjustment, the department initiating the request is responsible for advising all impacted parties. This should be accomplished by providing the other departments with a copy of the request sent to Financial Services.
In situations in which expenses are just being transferred between two departments (one is not actually performing services for another), the requested transfers should use the same expense account code, thus offsetting and having no impact to the University in total. For interdepartmental transfers in which one department is billing for a service to another department, a revenue subcode is usually assigned to the billing department while an expense subcode would be used to the department incurring the expense for the service.
Transfers of funds after the original budget allocations may be requested throughout the year by fiscal officers only if they have fiscal responsibility over the account from which the funds are being transferred.
Budget reallocations (transfers of funds between subcodes within the same account) may be requested throughout the year. The budget total must remain the same amount. Referred to as Budget Transfers, such requests should be made through a requisition or memo and sent to firstname.lastname@example.org.