Journal Entries, Internal Charges and Certain Payroll Journal Entries

There are two methods for transferring funds between university accounts – Internal Charges and Journal Entries.

  • Internal charges are done when goods or services have been provided to another department.
  • Journal entries are used to transfer funds between cost objects and/or G/L accounts when no goods or services were provided.
  • Certain payroll journal entries.  Limited to transfers of graduate tuition (519600), graduate health (519310), worker's compensation (519800), and unemployment (519700).

Both internal charges and journal entries are entered directly into SAP. Departments may chose to use the G/L Account Posting Form, which is available on SAPPHIRE along with completion directions, to document these transactions for their records. This form allows multiple entries per form.

A second form, the Interdepartmental Charge Form, can also be used for internal charges. The department can use whichever form best fits their needs.

Procedures:

  • The originating/billing department is responsible for obtaining the line(s) of coding from the other department(s).
  • Accounting will no longer send out copies of journal entries or internal charges. The originating/billing department is responsible for notifying the other department(s) of transactions by a mutually agreed upon method (hard copy, email, phone, etc.)
  • Enter the information directly into SAP and keep the form on file for audit purposes.

Tips on completing Internal Charges:

  • Auxiliary billing departments (cost objects beginning with 23) must use an account from the 48xxxx series (Auxiliary Operation Internal Sales) as the credit G/L account. State-aided revolving and non-revolving activities (cost objects beginning with 21 or 22) must use an account from the 59xxxx series (Expenditure Credits) for the credit G/L account. See the G/L Chart of Accounts for a list of accounts.
  • The debit account should be assigned according to the nature of the goods or services provided. An expending department may request use of a generic account, which should be used if possible.
  • Planned G/L accounts cannot be used for internal charges.

Tips on completing Journal Entries:

  • Use the actual G/L account for both sides of the entry. See the G/L Chart of Accounts for a list of accounts.
  • Planned G/L accounts cannot be used for journal entries

Tips on completing certain Payroll Journal Entries:

  • Do not use this form to move salaries/wages and regular benefits (i.e., G/L's 511000-519302 and 519400-519520). Transfers of salaries/wages and regular benefits should be submitted to the Payroll Office using the Payroll Transfer Form.
  • Personnel number and position number should be included for graduate tuition (519600) and graduate health (519310).

Reporting

Journal Entries appear as JE document types on SAP reports. Payroll journal entries are listed as PJ document types. Internal charges are listed as IB (Internal Charges-Batch) or IC (Internal Charges-Online), depending on where they were processed.