tjlmd Photography

Rules Governing Journal Vouchers

Submission to CAOGoverning the use of journal documents are guidelines or rules for their submission to CAO. These include:

Not allowed

Entry reminders

Required before CAO can post

Reclassification of charges All reclassifications must be appropriate to the cost object or GL account being charged. If the cost object (usually a sponsored WBS element) or GL account (payroll, equipment, or travel, for example) is subject to budget restrictions or other special rules, the reclassification must be in compliance with these restrictions or other special rules.

Documents involving the reclassification of a charge to a federally sponsored cost object must provide the following information:

Journal vouchers that alleviate an overrun require all relevant documentation to substantiate the entries.

Journal vouchers that alleviate an overrun in a sponsored project by assigning the overrun to a cost center or internal order supported by the Institute's budget or fund must use the G/L account 420314, Recorded Project overrun - No O/H. This is necessary to preserve the Research Base as required by Federal regulations.

Entries for which the receipt date is within the effective dates of the cost objects. Receipt dates outside the effective dates require compliance approval.

Internal meetings Journal vouchers for internal meetings must include the following:

Post any related alcohol charges to the G/L account 421205, alcoholic beverages.

Travel, equipment, and other fixed assets Journal vouchers charging travel, equipment, or other fixed asset accounts must follow the Institute's underrecovery, travel, and capitalization policies.

Compliance with Generally Accepted Accounting Principles

Activity requiring either operational or compliance review will be forwarded to the appropriate office in CAO. Compliance approval is associated with complying to generally accepted accounting principles and government regulations. Operational approval is associated with the need to have a review for data integrity requirements.

CAO approval is required for the following costs before a journal voucher can be posted. JVs requiring compliance approval are reviewed for compliance with generally accepted accounting principles and government regulations. JVs requiring operational approval are reviewed for data integrity (e.g., payroll).

Operational Approval Required An operational review entails ensuring internal MIT data integrity, e.g., property, payroll, and travel vouchers.

Payroll Activity Approval required for:

Compliance Approval Required A compliance review determines whether the journal voucher complies with government regulations and generally accepted accounting principles, e.g., journal vouchers to sponsored research accounts.

Travel advances Approval required for:

Reclassifications involving non-recoverable costs Approval required for:

Journal voucher entries involving receipt date outside of effective dates Approval required for:

Any entries for which the receipt date of any transaction does not fall within the effective dates of the cost objects, that is, if the cost object has started after, or ended prior to, the receipt date.

Operational Functionality

1. JV document types

G/L Account Selection Tables

G/L account numbers between 100000-169999, 200000-299999, 300000-399999

For document types SA, cost objects (cost center, internal order, or WBS element) are not required for G/L account numbers between 100000-169999, 200000-299999, 300000-399999.

G/L account numbers between 400000-499999 or 800000-899999 or any combination

G/L account numbers between 400000-499999 or 800000-899999 or any combination require a cost center or internal order or WBS element. Each line item must have one assignment to complete the entry.