Correcting Grant/Project Accounting Entries in Accounts Payable (Journal Voucher)

Purpose:  Journal Vouchers are used to adjust accounting entries for vouchers that have been posted and paid, and whose payments have been posted. They can also used to adjust grant or project-related accounting entries of vouchers. Journal vouchers  are not associated with changes to monetary amounts, nor do they create any payments. You process journal vouchers to correct accounting entries that have already been recorded in General Ledger.

Audience:  AP Specialist/AP Manager

You must have at least one of these local college managed security roles:

  • ZD Accounts Payable Inquiry
  • ZZ Voucher Approval
  • ZZ Voucher Entry
  • ZZ_AP_MANAGER
  • ZZ_AP_SPECIALIST

You must also set these User Preference Definitions:

If you need assistance with the above security roles or User Preference Definitions, please contact your local college supervisor or IT Admin to request role access.

Scenario: A Voucher has been created using an incorrect Chartfield string, and is posted and paid. All other information on the voucher is correct. To avoid making a manual General Ledger entry, which would result in General Ledger and Payables being out of sync, or unposting the voucher, correcting the voucher and then reposting the voucher and payment, we simply enter a Journal voucher in Account Payable. On the journal voucher, we reverse the amount to the incorrect Chartfields and add the amount to the correct Chartfields. This will keep the General Ledger and Accounts Payable in sync.

Correct Grant/Project Accounting Entries in Accounts Payable

Navigation: Accounts Payable > Vouchers > Add/Update > Regular Entry

In order to create a Journal Voucher, you must first know the Voucher ID and the Supplier associated with that Voucher.

The following example takes information from the original voucher to create a Journal Voucher and correct the Accounting Distribution:

Original Voucher Entry
Step 1: Create Journal Voucher
  1. The Voucher search page displays the Add a New Value tab and the system defaults the Voucher ID to NEXT. DO NOT CHANGE.
  2. In the Voucher Style field use the drop down arrow to select Journal Voucher.
  3. Enter or lookup the Supplier ID. The supplier should match the original voucher to be corrected. Optional to search by the Supplier Name, Short Supplier Name, or Supplier ID fields to populate the supplier information fields.
  4. Verify the Supplier Location is correct. If not, enter or lookup your college location.
  5. Enter the original Invoice Number and add the suffix of "_JV".
  6. Enter the original Invoice Date as was entered on the original voucher.
  7. Select the Add button.
Add new value for a journal voucher
Step 2: Add Distribution Lines

Note: The sum of all amounts on the Journal Voucher must be equal to zero.  If an adjustment is needed in the amount of the Voucher, an Adjustment Voucher must be created.

  1. The Invoice Information tab displays. This tab enables you to enter or view invoice information, including invoice header information, non-merchandise charges, and voucher line and distribution information. Use journal vouchers to correct accounting entries that have already been posted and paid.  You do not change any of the amounts on a journal voucher.
  2. Enter the Related Voucher ID. Use the Related Voucher field to enter the number of the voucher against which you need to create the journal voucher. The field is optional, but it should be populated to maintain an audit trail and to be able to search for it using the Related Voucher field on the Add and Search page.
  3. Scroll down the bottom of the page to the Distribution Lines section.
Enter related voucher

Note:  Every Journal Voucher requires 4 Distribution Lines.  Journal Vouchers are not "paid" but journal entries attached to a voucher.  The Cash Lines need to be added in order to move the cash with the expense.  For example:

  • Line 1 - Expense Line (Reversal of original Entry)
  • Line 2 - Cash Line (Off-set of Reversal of Original Entry line, coded 1000199).
  • Line 3 - Expense Line (New Entry, correcting original Entry).
  • Line 4 - Cash Line (Off-set of new/corrected entry, coded 1000199).
  1. In the Distribution Line section use the plus icon [+] to add lines:
    1. Enter the Distribution Line 1: Enter the first distribution line to reverse the accounting entry that was recorded incorrectly on the associated voucher, the amount and original ChartString.
    2. Distribution Line 2: Enter the second distribution line to reverse the accounting entry of the cash line that was recorded incorrectly on the associated voucher, the cash balancing amount and original ChartString.
    3. Distribution Line 3: Enter the new or corrected expense line entry of the voucher, amount and new corrected ChartString.
    4. Distribution Line 4: Enter the cash line distribution to offset the amount of new distribution line, the cash balancing amount and new corrected ChartString.
  2. Select the Save button to generate the Voucher ID.
Add distribution lines
Step 3: Budget Check Journal Voucher

Note: The sum of all amounts on the Journal Vouchers must be equal to zero. If an adjustment is needed in the amount of the Voucher, an Adjustment Voucher must be created.

  1. The Journal Voucher ID has been generated and additional tabs have been added. Verify the Invoice Total amount is zero. In the Action menu drop down, select Budget Checking.
  2. Select the Run button.

Journal Vouchers will be Budget Checked, Approved and Posted however, no payment will be created since the voucher has a zero balance.

select budget checking
  1. A message pops up, select Yes to continue the Budget Checking process.

If the Journal Voucher fails budget checking due to an incorrect ChartString, for more information on Correcting Grant/Project Errors and coding please see QRG Project Tree and Correcting Grant/Project Errors.

NOTE: Grant/Project related ChartStrings requires an active budget and a PC Bus Unit or a Business Unit, a Project ID, and an Activity ID.

Step 4: Submit for Approval
  1. The updated Journal Voucher displays. Select the Submit Approval button (or if needed, please see how Submit Vouchers for Approval).
  2. The Approval Comments window displays. Add comments in the Additional Details box.
  3. Select the OK button.
submit for approval
  1. The Approval Summary page displays. Review as needed. Select the side arrow icon to view other tabs.
Approval summary

Use the Regular Entry Summary tab to review the Budget, Approval, and Post Statuses.

summary tab
Step 5: Voucher Post
  1. After the journal voucher is approved, the final step is to Post the Journal Voucher either through online or batch process. Please see QRG Posting Vouchers in Batch or Ad Hoc.
  2. Once it is posted, the Post Status will show as “Posted”.
  3. Note: the Journal Generator process must be run in order to move the accounting entries in General Ledger.

When corrections made in AP get picked up by the Project Costing process, they generate a "Billable" cash line that you will see in project resource queries such as QFS_PC_PROJ_RESOURCE_PYMNT. Since cash lines should not be billed in a grant, the college will need to do a GL journal to back out the cash line using a GLE analysis type and put back in the cash line using a DNC analysis type. This will generate an offsetting billable cash line that will net to zero when combined with the original.

For more information please see the following QRGs: Analysis Types and Creating and Submitting a Manual Journal Entry. Using the example in the following video, the GL journal would be a positive $80.44 with GLE and a negative $80.44 with DNC. No need for the expenses in that GL journal as they will come into project costing correctly. It’s just the cash lines that need that GL journal to correct them.

Video Tutorial

The video below demonstrates the process actions described in steps listed above.  There is no audio included with this video.  Select the play button to start the video.

Video Tutorial via Panopto

View the link to Correcting Grant/Project Accounting Entries in AP (Accounts Payable Journal Voucher). This link will open in a new tab/window.

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