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Business and Financial Policies and Procedures

13.3 Journal Vouchers and Other Internal Transactions

Policy Statement

Units must ensure that journal vouchers and other internal transactions are processed in Banner accurately and timely.

Reason for the Policy

To ensure accurate reporting for the University of Illinois System’s audited financial statements.

Applicability of the Policy

All units that process journal vouchers and other internal transactions (such as feeders) within Banner.

Procedure

Any employee who processes and/or reviews journal vouchers or other internal transactions needs to be properly trained. The system recommends that employees gain this knowledge by successfully completing the Journal Voucher Processing Certification track. In addition, you may also consider registering for Journal Voucher Processing course, which is an instructor-led training session.

In addition to being properly trained, see below for several good business practices to follow that will help ensure the accuracy and timeliness of journal vouchers and other internal transactions.

Record Journal Vouchers and Other Internal Transactions in the Correct Fiscal Year and Accounting Period

To ensure accuracy and timeliness of financial data within Banner, it is important to record journal vouchers or other internal transactions within the proper fiscal year and accounting period in which the transaction occurred.

Process a Separate Journal Voucher or Other Internal Transaction for each Unique Accounting Transaction

To help ensure a clean audit trail, it is helpful to use a separate journal voucher or other internal transaction for each unique accounting transaction.

Correct Erroneous Journal Vouchers and Other Internal Transactions

If you realize that a journal voucher or other internal transaction posted to Banner incorrectly, it is recommended that you complete a new journal voucher or other internal transaction to completely reverse the erroneous entry. Once the erroneous entry has been reversed, you can then process a new journal voucher or other internal transaction to post the correct entry. This helps ensure a clean audit trail in case the erroneous transaction is ever selected for further review.

Provide Clear Documentation for Journal Vouchers and Other Internal Transactions

It is very important for journal vouchers and other internal transactions to contain proper documentation which clearly explains the purpose of the accounting transaction.

For example, it is important for the General Text Entry (FOATEXT) to be fully completed with information such as:

  • A detailed description of the accounting transaction being made on the journal voucher.
  • Your contact information (e.g., your name, e-mail address, unit, and 10-digit phone number).
  • Any other relevant information which may be helpful in creating a proper audit trail, such as the Banner document number of any applicable transaction that your journal voucher may be adjusting or reclassifying.

In addition, it is important for the Description Line on each sequence of the journal voucher or other internal transaction to have a clear explanation of the transaction taking place. For example, if you are processing a journal voucher to reclassify an expense from one C-FOAPAL to another, the Description Line on the debit sequence and credit sequence of the journal voucher should both have a unique description line explaining the purpose of the debit and the purpose of the credit.

Additional Resources

Journal Voucher Processing Certification
Journal Voucher Processing

Last Updated: March 13, 2020 | Approved: Senior Associate Vice President for Business and Finance | Effective: January 15, 2020

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