Journal Entries

A journal entry is an accounting transaction recorded in the general ledger (GL) or sub-ledgers (i.e. projects) which are later rolled up into the general ledger. The totals of the debits and credits for any transaction must always equal each other, so that the transaction is always "in balance." At Rutgers, journal entries are used to correct errors, allocate expenses, and transfer charges between departments or funding sources.

Units should only select from these journal categories: RU Actuals (for manual actual journals from one GL string to another), RU Cash Receipts (for miscellaneous cash, checks, credit card receipts, and wires), RU Manual Accrual/Deferral (including RU PGM Revenue and Project Costs Accrual/Deferrals), and RU PGM Revenue Adj (for adjusting revenues in the project subledger for non-sponsored projects). Categories should always start with "RU." Payroll transactions cannot be adjusted in Projects.

A manual journal is entered directly into the general ledger (GL) through either the journal entry form or a spreadsheet, and moves funds between GL strings. A project cost adjustment works within the project subledger and can move costs between projects (Project to Project), from a project to GL (Project to GL), or from GL to a project (GL to Project). Project cost adjustments are entered through the nonlabor costs spreadsheet in the Projects module, not the General Accounting module.

When a journal is posted with different units or different fund types on the debit and credit sides, the system automatically creates balancing segment lines called "Ledger intercompany lines." These are system-generated transactions that balance the journal for financial activity between units or fund types. For example, if a journal debits Unit A and credits Unit B, the system creates intercompany lines to ensure each unit's ledger balances independently. You do not need to create these lines manually ??? they appear automatically after posting.

Navigate to the Financial Management System using your NetID and password. Go to General Accounting tab > Journals tile > Tasks menu > Create Journal. Leave the Journal Batch field blank (the system generates a unique number). Set the Ledger to "Rutgers Ledger" and Legal Entity to "Rutgers, The State University of New Jersey." The Accounting Date must reflect a date within the selected open period. Enter the GL string to be debited on line one and the GL string to be credited on line two. Enter amounts in the Debit and Credit fields, then click Save, Complete, and Post. The journal is routed for approval automatically.

Navigate to General Accounting tab > Journals tile > Tasks menu > Create Journal in Spreadsheet. Open the downloaded Excel file, click Enable Editing, and select Yes to connect to Oracle. In the header, select "Rutgers Ledger" and a category starting with "RU." Enter GL strings in the journal lines by typing, pasting, or using the Account Selector (double-click to open). Set Currency to USD and ensure debits and credits are equal. To submit, you can choose "Submit Journal Import" (allows editing and attachments after upload) or "Submit Journal Import and Posting" (posts directly, no edits allowed). Always select "Yes with validation" for Import Descriptive Flexfields.

For journals created via form: click the plus (+) sign next to the Attachments label, click Browse to select your document, give it a title and description, then click OK. For journals created via spreadsheet: attachments must be added after upload. Go to General Accounting > Journals > Manage Journals, use the Add Fields dropdown to select "Created By," search for the preparer's name with "Unposted" status, click the journal hyperlink, then use the plus (+) sign on the Attachments label to browse and attach your document.

Leave the Journal and Journal Batch fields blank ??? the system generates unique numbers. The Description field is optional. The Accounting Period defaults to the current open period, and Balance Type defaults to "Actual." The Ledger field should be "Rutgers Ledger." The Legal Entity must always be "Rutgers, The State University of New Jersey." The Accounting Date must be within the selected open period (e.g., if the July period is selected, use a July date). The Category should always start with "RU" (e.g., RU Actual, RU Cash Receipts).

After a journal is submitted, it is automatically routed to the Finance Approver for review. The Finance Approver receives a notification and can approve or reject the journal. Once approved, the journal posts to the general ledger. For funding transfer journals, a second approval by the University Controller's Office is required within 24 hours of departmental approval. Journals that do not balance or lack the correct single funding transfer account will be rejected.

Journals created using a restricted fund type or account are automatically rejected by the system. The transaction does not go to the Finance Approver for review. Instead, the preparer receives an email notification with a subject line that includes "Rejected" and the journal batch details. To resolve this, the preparer must correct the chart of account string (typically the fund type or account segment) and resubmit the journal.

Use the Journals Dashboard (General Accounting tab > Journals tile) to see journals by status: Requiring Attention, Requiring My Approval, Pending Approval from Others, Incomplete, or Import Errors. To search for a specific journal, go to Tasks menu > Manage Journals, use the Add Fields button to add "Created By" to search parameters, then enter your criteria (Journal Batch number, Accounting Period, or NetID) and click Search.

Cross Validation Rules (CVR) control which combinations of chart of account segment values can be used together. These rules are implemented in Oracle Cloud GL and subledgers. When a CVR error occurs, you'll see a message like "New Chart String Combination Violates Cross Validation Rule." For example, CVR Unit-BL 03 enforces that Auxiliary Units (155-180, 210, 474-498, 560-585, 865-899) can only use Business Line 9999 when recording to Balance Sheet (Assets & Liabilities) accounts. For non-Balance Sheet accounts, valid Business Lines include 1099, 3099, 3599, 4399, 5199, 5699, and others listed in the CVR rules. To fix CVR errors: check the CVR listing on the Chart of Accounts website under "Existing Chart Rules," identify which segments conflict, correct the chart of account string, and resubmit.

There are several common CVR error messages: (1) "General Ledger Journal Entry: New Chart String Combination Violates Cross Validation Rule" ??? check the CVR listing on the Chart of Accounts website, identify which segments conflict, correct the COA string, and resubmit. (2) "General Ledger Journal Entry: Disabled Chart String Combination" ??? you are using an account that is either disabled for posting or is a control account; switch to a valid account. (3) For project cost adjustments, errors like "JBO-GL: GL_CVR_1000081_CVR 3A-ACCOUNT" mean a Balance Sheet account can only use a Balance Sheet Business Line. (4) "The code combination identifier for the raw cost debit account is not valid (PJC-2220101)" ??? the GL string entered in the Raw Cost fields is invalid; verify against the COA.

CVR Unit-BL 03 enforces that Auxiliary Units (155-180, 210, 474-498, 560-585, 865-899) can ONLY use Business Line 9999 when recording to Balance Sheet (Assets & Liabilities) accounts. For non-Balance Sheet accounts, these auxiliary units must use one of the valid Business Lines: 1099, 3099, 3599, 4399, 5199, 5699, 5899, 5999, 6099, 6599, 6699, 6999, 7099, 7699, 7899, 7999, 8299, or 9000-9899, 9999. If you use an invalid combination, you will see the error: "CVR Unit-BL 03 - The Business Line value used is not valid with this Unit value."

Rutgers University uses the accrual basis of accounting. Units are required to accrue or defer external expenses or revenues as part of monthly and year-end closing. Accruals ensure appropriate recording of accounting transactions and match revenue/expenses for a period to revenue/expenses incurred in that period. Internal revenue and expenses should NOT be accrued or deferred.

Expense accruals are recorded in the period when expenses are incurred, regardless of when payment is made. Navigate to General Accounting > Journals > Tasks > Create Journal, select category "RU Accrual/Deferral," and always use the last day of the month as the Accounting Date (use 6/30 for year-end). For the balance sheet account, use accounts under 200TT (Accounts Payable & Accrued Expenses). For year-end, the Controller's Office suggests using account 20306 (Accounts Payable) for expense accruals that should reverse in July. Note: the Controller's Office records invoice accruals for invoices $25,000 and greater; departments are responsible for amounts less than $25,000.

Revenue accruals record revenue earned in one period but not billed or received until a future period. The offsetting debit is usually Accounts Receivable (use accounts under 120TT). For year-end, account 12845 (A/R Miscellaneous) is suggested to identify year-end accruals. Deferred/unearned revenue is recorded when payment is received before the revenue is earned ??? debit Cash or A/R and credit Unearned Revenue (use accounts under 240TT, or 24130 for Unearned Revenue Other). Use category "RU Accrual/Deferral" for GL entries or "RU PGM Revenue Accrual" for project revenue.

Accrual/deferral entries require two levels of approval during year-end close: first by the preparer's Finance Approver, then by the University Controller's Office. Preparers MUST attach appropriate backup documentation. An invoice is highly recommended; if unavailable, attach the receiving document and PO as supporting documentation. If the accrual is based on a calculation, the attachment must include how the calculation was derived. Recovery accounts should NOT be accrued or deferred. When accruing receivables or payables, use your U-D-O-L with the same fund type as the revenue/expense and Business Line 9999. Valid fund types: 100 (Unrestricted Operating General), 110 (Unrestricted Operating Auxiliary), or 150 (Unrestricted Operating Other).

Revenue accrual accounts should relate to Accounts Receivables (120TT Grandparent Current Accounts Receivable Net). Specific mappings: Patient Service Revenues and Patient Accounts Receivable use accounts under 1260T. Auxiliary Revenues and AR Auxiliary Enterprises use account 12958. Other Operating Revenues and AR General University Other use account 12953. For year-end, use account 12845 (A/R Miscellaneous) to specifically identify year-end accruals that need reversal in July. For Deferred/Unearned Revenue, use accounts under 240TT (Unearned Revenues). If none of the specific accounts apply, use 24130 (Unearned Revenue Other).

For expense accruals, use accounts under 200TT (Accounts Payable & Accrued Expenses). Note: not all accounts in this range can be used ??? some are control accounts (system-generated) or have associated procedures. For year-end, the Controller's Office suggests using account 20306 (Accounts Payable) for expense accruals where the liability is credited and should reverse in July. For prepaid expenses (payments made before incurring costs), use accounts under 145TT (Prepaid Assets). For year-end, use account 14730 (Prepaid Other Expenses). Important: when accruing receivables or payables, you MUST use your U-D-O-L with the same fund type as the revenue/expense and Business Line 9999. Valid fund types: 100 (Unrestricted Operating General), 110 (Unrestricted Operating Auxiliary), or 150 (Unrestricted Operating Other).

During year-end, payroll accruals for salary pay and hourly pay are recorded centrally by Central Accounting ??? departments do not need to enter these. If departments need adjustments to salary accruals, they must follow the "Accounting for Salary & Wage Manual Adjustments" procedure (Section 5 of the salary/wage manual). Recovery accounts should NOT be accrued or deferred, as they are internal and need to balance at the end of each period for accurate reporting.

An expense recovery is a transaction used when one Rutgers unit bills another Rutgers unit for goods or services provided. The service provider incurs direct expenses and allocates the amount to the consumer unit(s) per agreement. Expense recoveries must only be used for internal transactions and must net to zero. They can be facilitated by an Internal Purchase Order (IPO) in RU Marketplace or a general ledger journal entry. Both the service provider and consumer must be Rutgers entities ??? if the consumer is non-Rutgers, revenue must be recorded instead. Expense recoveries cannot be used to transfer funds, allocate resources, record external revenues, or pay external vendors.

Rutgers uses specific account values (74100-74125) for expense recoveries. The same account value must be used on both debit and credit sides to ensure accounts net to zero. Key values include: 74100 (Construction & Renovation Services), 74101 (Copy Mail & Print Services), 74102 (Facilities & Maintenance Services), 74103 (IT & Media Services), 74104 (Lab Equipment & Core Use), 74105 (Parking Services), 74106 (Public Safety Services), 74107 (Records Management), 74108 (Materials & Supplies COGS), 74109 (IPO Other ??? END DATED, no longer active), 74110 (Professional Services), 74111 (Registration Rental & Conference/Event Services), 74112 (Student Services), 74113 (Surplus & Moving Services), 74114 (Training Services), 74115 (Transportation Services), 74116 (University Inn Lodging), 74117 (University Dining Services), 74122 (CMR Animal Care Per Diem Fees), and 74125 (Service Center & Core Facility Fees).

For projects: expense recovery credits applied to a project MUST be recorded via a GL-to-Project transaction (not a direct project entry). For RU Marketplace: the RU Marketplace approver (not the receiving department) is responsible for ensuring the appropriate expense recovery account value is used when placing an order or creating a requisition. Service provider units are expected to include their designated account value on all quotes, invoices, and communications to internal customers who will order through IPO. The same expense recovery account value must be used on both debit and credit sides to ensure accounts net to zero.

Funding transfers are the flow of funds from one chart string to another, exclusively for internal use. They have a similar impact as revenues (transfers in) and expenses (transfers out) but from an institutional perspective, they do not represent "real" revenues or expenses and must net to zero. Use funding transfers for: providing funds to cover special event expenses, moving funds for repair and replacement needs into plant funds, transferring funds to close a deficit in GL or non-sponsored projects, or moving funds to a designated fund type like faculty start-up funds. Do NOT use transfers to reclassify revenues or costs, on sponsored projects, or to combine restricted gift funding with unrestricted funds.

The Transfer Account Matrix (available at coa.rutgers.edu) determines which account value to use. The same funding transfer account must be used on ALL lines of the journal entry to ensure net to zero. Key values include: 90190 (Within Unrestricted Operating), 90200 (Between Operating and Internally Designated Funds), 90202 (Within Internally Designated Funds), 90400 (Between Plant and Operating Funds), 90401 (Between Plant and Internally Designated Funds), 90402 (Within Plant/Capital Funds), 90500-90508 (Unrestricted Endowment transfers), 90602-90603 (Within Contributions), 90020 (Mandatory Transfers Debt Service), 90030 (Mandatory Transfers Deferred Maintenance Costs), and 90199 (Transfers Year End Balances). Note: accounts 90020, 90030, and 90199 serve specific mandatory and year-end purposes and should only be used for their designated transfer types. These values are NOT valid in PeopleSoft and RU Marketplace. Journal entries that do not balance or lack the same single funding transfer account will be rejected.

Key restrictions: (1) Transfers are NOT permitted on sponsored projects. (2) Funding from donors (restricted gifts) cannot be combined with unrestricted funds ??? if a gift is in deficit, expenses must be moved OUT; do NOT transfer funding in. (3) Transfers are NOT intended to reclassify revenues or costs from one GL string to another. (4) The same funding transfer account must be used on ALL lines of the journal entry. (5) Only one purpose per funding transfer journal with detailed descriptions at entry and line level. Rejection rules: journals that do not balance or lack the same single funding transfer account WILL be rejected. All GL journal transfers require a second approval by the University Controller's Office within 24 hours of departmental approval. Transfer account values are NOT valid in PeopleSoft and RU Marketplace.

Faculty funds are resources allocated to an individual faculty member or academic department to support research and academic activities. They include start-up funds, F&A return on revenue, incentive funding, internal research awards, and discretionary funding. Faculty funds must be recorded using Fund Type 160 (Internally Designated Faculty) and all faculty fund projects use the 3XXXXX series. Naming convention: "Unit and faculty member's name" for individual faculty (e.g., SAS John P. Smith) or "Unit and department" for departments (e.g., SAS Biology Department). Faculty projects are funded via transfers ??? they do not receive revenue directly. To request a new project, download the New Project Request Form from the University Controller's Office website and submit to coa@finance.rutgers.edu.

Navigate to Projects tab > Costs tile > Tasks > Capture Costs > Create Nonlabor Costs for Third-Party Applications. Select Business Unit "Rutgers BU," Source "RU Project Transactions," and Document "01- Project to Project Cost Transfer." This is a TWO-LINE entry: Line 1 debits the source project (enter a POSITIVE value in Quantity), and Line 2 credits the destination project (enter a NEGATIVE value in Quantity, select "Yes" for Unmatched Negative Item). Both lines need the project number, task number, expenditure type (account), expenditure organization (UDO concatenation), and expenditure comments with your NetID. Leave Raw Cost Credit Account blank. After entering, export to FMS, then search in Manage Expenditure Batches and click Submit to send to the Finance Approver.

Both use Document "02 - Project and GL Cost Transfer" and are ONE-LINE entries. For Project-to-GL (credit project, debit GL): enter a NEGATIVE Quantity (to credit the project), select "Yes" for Unmatched Negative Item, and enter the GL string being debited in the Raw Cost Credit Account field. For GL-to-Project (debit project, credit GL): enter a POSITIVE Quantity (to debit the project) and enter the GL string being credited in the Raw Cost Credit Account field. In both cases, leave Raw Cost Debit Account blank ??? the system uses the COA string from the project setup. After exporting, search in Manage Expenditure Batches and submit to the Finance Approver.

Reversing entries can only be made to transactions already posted to the Financial Management System. Navigate to Projects > Costs > Tasks > Capture Costs > Create Nonlabor Costs for Third-Party Applications. Copy the data from the original transaction (document entry, project number, task number, expenditure type, organization, comments, currency, and any GL strings in Raw Cost Credit Account). Change the batch name to a unique name. For reversing a debit (positive Quantity): enter a NEGATIVE value and select "Yes" for Unmatched Negative Item. For reversing a credit (negative Quantity): enter a POSITIVE value and remove "Yes" from Unmatched Negative Item. For Project-to-Project reversals, reverse each line independently. Best practice: save your original nonlabor costs spreadsheets to make reversals easier.

Key field requirements: Business Unit must be "Rutgers BU." Source must be "RU Project Transactions." Document depends on the type: "01- Project to Project Cost Transfer" or "02 - Project and GL Cost Transfer." Expenditure Batch must be a unique name ??? do NOT reuse previous batch names. Expenditure Item Date must be in mm/dd/yyyy format (today's date or last day of prior month if that period is open). Expenditure Organization is the concatenation of Unit + Division + Organization segments (not just Unit). Original Transaction Reference must contain the organization segment for the project. Expenditure Comments should include your NetID for identification plus a description of the transaction purpose. Transaction Currency is always USD.

The system now automatically uses the Chart of Account (COA) string from the project setup ??? you no longer enter the project's COA string in the Raw Cost Debit field. For Project-to-GL transactions: leave Raw Cost Debit Account BLANK and enter the GL string being debited in the Raw Cost Credit Account field. For GL-to-Project transactions: leave Raw Cost Debit Account BLANK and enter the GL string being credited in the Raw Cost Credit Account field. For Project-to-Project transactions: leave BOTH Raw Cost fields blank. Exception: if you need an activity code other than what's in the project setup, enter the full project string with the desired activity code in Raw Cost Debit Account.

After a project cost adjustment is rejected by a Finance Approver, the preparer can only edit certain fields in Cost Collection Details: the GL string, project number, task number, quantity, and expenditure comments. Other fields cannot be changed after rejection. If more extensive changes are needed, the transaction may need to be withdrawn and re-entered from scratch. Always review the rejection reason in the notification before making corrections.

The RU RPT PGM 013 report (CERP COA Segment Listing for Project Report) is located in Reports and Analytics in the Financial Management System. This report helps identify the project number, task number, and COA segment listing for any project. Use this report before creating project cost adjustments to verify you have the correct project details and account segments.