UH System Policies and Procedures
- Board of Regents Policies
- Executive Policies
- + 1. General Provisions
- + 2. Administration
- + 3. Organization
- + 4. Planning
- + 5. Academic Affairs
- + 6. Tuition, Financial Assistance, and Fees
- + 7. Student Affairs
8. Business and Finance
- 025. Fiscal Responsibilities within the University
- 026. Appointment of Fiscal Administrators and Assistant Fiscal Administrators
- 200. Overview
- 215. Definitions
- 220. General Principles
- 225. Limitations in Purchasing
- 230. Contracting for Services
- 235. Competitive Sealed Bidding
- 240. Competitive Sealed Proposals
- 245. Professional Services Procurement
- 250. Small Purchase – Goods and Services
- 255. Sole Source Procurement
- 260. Emergency Procurement
- 265. Specialized Purchasing
- 266. Purchasing Cards
- 270. Types of Contracts
- 275. Contract Formation and Administration
- 281. Construction and Professional Services in Support of Construction
- 285. Cost or Price Reasonableness
- 290. Requirements of Federally Funded Purchases
- 300. Interests in Real Property
- 305. Use of Non-University Space and Facilities
- 350. Concessions
- 375. Fund Raising by a Recognized University Affiliated Volunteer Group or Non-Profit Organization
- 400. Risk Management Guidelines and Procedures
- 509. Property and Equipment Overview
- 510. Loaned Property, Personally Owned Property, and Collections
- 512. Identification of Property
- 516. Property and Equipment Valuation (formerly Valuation of University Equipment)
- 521. Property and Equipment Acquisition
- 523. Receiving Property and Equipment
- 524. Property and Equipment Maintenance
- 530. Property and Equipment Storage and Movement
- 536. Subcontract Control of Government Property
- 539. Property and Equipment Record Maintenance
- 540. Physical Inventory
- 541. Property and Equipment Management Reports
- 542. Property and Equipment Utilization
- 543. Property and Equipment Transfer and Retirement
- 550. Capitalization
- 555. Impairment of Capital Assets and Retirement of Real Property
- 560. Post-Issuance Tax Compliance Procedures for Tax-Exempt and Build America Bonds
- 561. Tax Treatment of Non-Service Financial Assistance for Individuals
- 602. General Ledger
- 611. Account Code
- 612. Establishment and Maintenance of Account Codes
- 615. Object Codes
- 617. Revenue and Higher Education Function Codes
- 619. Fund Groups
- 620. Gifts
- 621. Delinquent Financial Obligation Tax Setoff Hearings
- 622. University Endowments
- 635. Accounting For Leases
- 636. Supply Inventory
- 641. Journal Entries
- 650. Continuation and General Clearing Accounts
- 651. Non-Student Accounts Receivable and Delinquent Financial Obligations
- 671. Year-End Accounting Data
- 685. Cancellation or Replacement of University of Hawaii General Account Checks
- 686. Terminal Vacation Payout
- 701. Receipting and Depositing of Funds Received by the University
- 702. Establishment of Electronic Funds Transfer and Receipt of Funds
- 710. Credit Card Administration
- 731. Student Accounts Receivable and Delinquent Financial Obligations
- 740. Dishonored Checks
- 750. Establishment and Maintenance of Change Funds
- 760. IRS Compliance for Reporting Cash Payments Over $10,000
- 770. Student Refunds
- 802. Requirement of Direct Deposit and/or ACH
- 806. Roles and Responsibilities for Payment Transaction Processing
- 808. Bank Wire Transfer
- 851. Employee Out-of-State and Intra-State Travel
- 852. Personal Automobile Mileage Voucher
- 853. Mobile Devices and Related Communications Services Program
- 863. Relocation Allowances
- 867. Information Reporting on 1099-MISC and Backup Withholding on Payments
- 868. Reporting and Withholding on Payments to Nonresident Aliens and Foreign Corporations
- 870. Pay Types and Pay Days
- 871. Distribution and Security of Paychecks
- 872. Emergency (Priority) Payroll
- 873. Payroll Processing Cycle Deadlines
- 876. Overtime Authorization and Compensation
- 877. Salary and Wage Overpayment Recovery
- 879. Post Death Payments
- 951. Accounting for Federally Matching Equipment Grants
- + 9. Personnel
- + 10. Land and Physical Facilities
- + 11. Miscellaneous
- + 12. Research
- Abolished Procedures (Post Oct. 2014)
- Archived AP
UH‐Related Laws and Rules
- Hawaiʻi Revised Statutes (HRS) 304A
- Hawaiʻi Administrative Rules (HAR) Title 20
Administrative Procedure 8.641 Administrative Procedure 8.641
Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.641, Journal Entries
Effective Date: June 2016
Prior Dates Amended: July 1982, August 2001
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: EP 1.102, Authority to Manage and Control the Operations of the Campus
Review Date: June 2019
To explain the process for recording accounting related journal entry adjustments in the University Kuali Financial System (KFS).
Journal Entry Electronic Document (eDoc) - An accounting document used to record financial transactions or adjustments in the KFS. Journal entries should contain at least two accounting lines, and include explanations, references to and attachments of documentary evidence supporting the entries.
III. Administrative Procedure
The KFS uses specialized eDocs to record journal entries. The different eDocs are designed to facilitate accurate recording of adjustments to general ledger accounts.
A. Types of journal entry eDocs
1. Distribution of Income and Expense (DI)
The DI document is used to distribute income or expense from a holding account to one or more appropriate accounts, when one account has incurred expenses or received income on behalf of one or more accounts. A DI can also be used to move income, expenses, assets, and liabilities to other sub-accounts, object codes, or sub-object codes.
a. In most cases, the distribution will involve the movement of amounts from one account to another using the same object codes.
b. The DI is also used to properly reclassify Amounts advanced to the Research Corporation of the University of Hawaii (RCUH) for service ordered projects
using object code “7232 – RCUH EXPENSE/ADVANCE” to proper object code when spent.
2. General Error Correction (GEC)
The GEC is used to correct accounting information that has been posted in the KFS.
a. Examples of common usage at UH are:
1) Correcting accounts and object codes on a Financial Processing (FP) eDoc, or a PREQ (PO Invoice).
2) Account correction for an expense (e.g., supplies were charged to an incorrect account).
b. The GEC accounting line includes a reference field for the original entry being corrected. This information provides an audit trail to support the correction and augments documentation attached to the eDoc.
3. Transfer of Funds (TF)
The TF is used to transfer funds (cash) between accounts. This document only allows the use of certain “transfer” object codes. Transfers are neither revenue nor expenditures but for accountability purposes, a “transfer-in” behaves like revenue while a “transfer out” behaves like an expenditure. In KFS, these object codes have the following Object Sub-Type Codes:
a. TM (Transfers Mandatory) – Transfers required by external third parties or contractual agreements because of:
1) Agreements relating to the financing of educational and auxiliary plant, or provisions for renewals and replacement of plant
2) Legislation requiring appropriate financing of educational activities
3) Legally binding endowment or other agreements
b. TN (Transfers Non-mandatory) – Non-mandatory transfers are cash transactions between accounts that are initiated at the discretion of a governing board or management. For commonly used non-mandatory transfer object codes, see Attachment 1.
The from and to accounting lines for a particular transfer should have object codes with the same object sub-type code (e.g. there should not be a transfer between a TM object code and a TN object code). Also, the object code to use on an accounting line should describe the transfer destination account or source account. On the FROM accounting line, the object code should describe the account that the funds are being transferred to. Likewise on the TO accounting line, the object code should describe the account that the funds came from.
4. Internal Billing (IB)
The IB eDoc is used to bill for goods or services provided by one university department to another university department, reflecting internal income to the provider and expense to the customer. The IB eDoc should be prepared by the department providing the goods or services since the document does not route to the responsible individual of the income accounting lines.
5. Service Billing (SB)
The SB is used to record revenues and expenses between University accounts that have a pre-approved written agreement. The SB records the same transactions as the IB, but because of the pre-existing agreement, the SB eDoc does not route for approval and individuals need KFS authorization to be able to initiate SB eDocs.
6. Salary Expense Transfer (ST)
The ST eDoc is used to move salaries and related benefit charges for a given employee for a particular paid date or set of paid dates from one or more accounts to one or more accounts.
An employee may have multiple Employee IDs (Emp IDs), however, only one primary Emp ID. The system only recognizes the primary Emp ID for salary and related benefits transfers. Data entry of the primary Emp ID will provide a listing of the payroll expenses for the selected employee by Paid Date for all associated Emp IDs. Security roles within the system, allow the ST initiator to view and move payroll expenses within their organization structure only.
The ST eDoc is used to correct an employee’s payroll expense that was charged to an incorrect accounting string. This error could occur for a number of reasons, including:
a. Someone mis-keyed the payroll information, so the expense was initially posted to the wrong account.
b. An employee was paid for work on a grant before the account was established, and the wages were initially posted into another account.
c. The wages were initially paid on an expired or invalid account.
d. An error was made when the employee was hired.
e. A correction occurred in which the account was changed after an employee was paid.
7. Journal Voucher (JV)
The JV is used to record adjustments that cannot be effectively recorded by other journal entry eDocs. Access to the JV is restricted to central office accountants.
B. Fiscal Administrator responsibilities for processing a journal entry eDoc
1. All required fields (*) must be completed.
2. Provide a detailed explanation for the adjustment in the explanation field.
3. Debit amounts must equal credit amounts.
4. Attach supporting documentation in the notes and attachments tab.
5. Additional reviewers can be added in the ad hoc recipients tab.
IV. Delegation of Authority
There is no specific administrative delegation of authority.
V. Contact Information
General Accounting and Loan Collection, 956-8278, or firstname.lastname@example.org
A. Link to superseded Executive Policies in old format https://www.hawaii.edu/policy/archives/ep/
B. Link to Administrative Procedures in old format https://www.hawaii.edu/policy/archives/apm/sysap.php
VII. Exhibits and Appendices
Attachment 1: Most Commonly Used Non-Mandatory Transfer Object Codes
Vice President for Budget and Finance/Chief Financial Officer
June 27, 2016
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