Journal Entries

To transfer support or reclassify expenses between funds maintained in the Banner Finance System, departments must complete an Interdepartmental Journal Voucher (JV), using the appropriate funds and accounts. The JV must have appropriate approvals and be submitted to the Accounting Office.

• Support allocations should be done when the objective is to leave the expense in the fund it is currently in and provide funding to cover that expense. These are to be processed as transfers using account Y079.
• Expense reclassifications should be done when the objective is to move the expense to a different fund. These are to be processed using the original account code charged on both sides of the entry.

As a general rule, transfers of support are to be processed on interdepartmental journal voucher forms using account code Y079 - “Transfers”, on both the debit and credit sides of the entry.

Transfers of support within the General Fund are to be processed as budget transfers. Various budget accounts have been established within the Banner Chart of Accounts. These accounts should be utilized when completing budget journal vouchers. Refer to the Budget Office for more information on budget transfers.

Transfers of support out of the general fund to a non-general fund are generally not allowable; exceptions may be made by the Budget Office. Departments should contact the Budget Office to obtain approval and attach this approval to the JV.

Transfers of support between two Agency Funds is permitted using account Y079 – “Transfers”. However, a transfer, using Y079, is not permitted between an Agency Fund and any other fund type. In instances where funding is required, use account E079 – “Supplies & Services Expense Reclass” if support is being provided to a student organization.

As a general rule, expense reclassifications are to be coded on interdepartmental journal voucher forms using the appropriate expense accounts on both the debit and credit sides of the entry. For example, if postage expenses are to be reclassified between funds, account K055, “Postage” would be used on both the debit and credit side of the entry. If student labor costs are to be reclassified between funds, account C020, “Student Labor” would be used, etc.

Generally, expense reclassifications for compensation accounts are not allowable; this is to ensure the payroll system and finance system reconcile. Reclassifying salary and wages should be done by processing a “Change of Status” form, which will flow the change through the systems correctly. Exceptions are made for reclassifying student payroll charges and other circumstances approved by the Accounting Office. When an exception is approved, detailed compensation expense accounts must be used on the interdepartmental journal voucher to ensure that expenses continue to be matched against their related budgets.