Creating Accounting for a Direct Journal

Purpose: This document provides instructions on how to create accounting for a Direct Journal and mark it as Complete so that it posts to the General Ledger. Note that the AR Payment Approver role is required to access the Create Accounting Entries page.

Overview: Payments that do not correspond to AR Open Items can bypass the cash application process and be posted directly to the General Ledger. Such payments are often called miscellaneous cash receipts or non-AR cash. They are referred to as directly journaled payments because we can create accounting entries for them without applying the payment to any item.

Generally, the accounting entries for a Direct Journal Payment will be a Credit to Revenue and a Debit to Cash. The Credit entry can also be used indicate Refund of Expenditures or other non-revenue situations. The Debit entry for Cash will be generated based on the Bank Account selected for the associated Deposit. Multiple accounting entries can be entered for the payment.


Step 1: On the Financials homepage, select the Receivables & Deposits tile.

 

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Step 2: The Regular Deposit page will appear. Select Create Direct Journal Entry.

 

 

 

Step 3: On the Create Accounting Entries search page, select or enter the Deposit Unit and Deposit ID and click Search.

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Step 4: Enter the Credit distribution line(s) to which you would like to apply the payment (Line Amount, Account, Fund, Department, Agency Use (optional), Authority, Project, Activity and Analysis Type)

For the Analysis Type field:

  • Enter ‘REV’ if the account is a revenue account
  • Enter ‘EXP’ if the account is an expense account
  • Enter ‘BAL’ for other accounts used.


Step 5: If needed, under the Distribution Lines section, scroll to the far right and click on the ‘+’ button to add more accounting lines. For this example, we will not add a second distribution line. Click the Create icon (lightning bolt) to generate the Cash distribution line(s). The Cash distribution line will inherit the Account Chartfield from the Bank Account selected for the Deposit. Other Chartfields will inherit from the corresponding Credit entries.

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Step 6: The Cash line will be generated. Click on the Complete checkbox to set the payment to post, then click Save. 

 
Step 7: In order to process the payment, the accounting must be budget checked. Click the Budget Check icon.


Step 8: The Budget Status will be updated to either Valid or Error. If there is an error, uncheck the Complete checkbox on the Modify Accounting Entries page, update the accounting as needed on the Create Direct Journal Entry page, and rerun Budget Check. Once Valid, the payment is ready to be processed.

 

Done! The Deposit is complete. Automated batch processes will pick up payments set to Complete throughout the day and post them to the General Ledger. Once the process executes, the Journal ID will be displayed on the Distribution Line.