Correct a Posted Agency Journal
How do you correct an Agency Journal (AGY) that was previously approved and posted to the General Ledger with a mistake in it?
Corrections are a three-step process for which the journal creator is responsible.
- Step 1: Find and copy the original posted journal.
- Step 2: In the copy, reverse the mistakes of the original journal.
- Step 3: Create a new Agency Journal (AGY) to correctly record the transaction.
You must have the Original Journal ID of the journal to be corrected. Find it on the GL008 Revenue and Expense Activity Report in the period the transaction was posted to the General Ledger or in NUFinancials Budget Inquiries.
Search for the original journal from the NUPortal or from NUFinancials. It is not necessary to copy the original journal, but it is recommended in order to see the original charges to be reversed. From the Actuals Journal Search on the NU Portal, or from the Journal Search in NUFinancials, search for the original journal using the Journal ID from the GL008 or other source.
- Enter the original Journal ID.
- Click Search. Result: NUFinancials opens a new window and displays the original journal. Scroll down to find the Copy button.
- Click Copy. Result: a new journal is created, an editable copy of the original.
- In Journal Purpose, click Correction Agency Journal.
- In Original Journal Detail, enter the Original Journal ID and press <Tab>. Result: The Posted Date of the original journal appears.
- In the Reason / Description field, explain the correction.
Reverse the signs of the amounts.
If the original journal had some lines that were correct, delete them before proceeding. In Journal Lines, reverse the signs of amounts on the incorrect lines to zero-out the amounts.
- Reverse the sign on the first line and type REVERSAL in the Reference field. The example is below.
- Reverse the sign on subsequent line(s) and type REVERSAL in the Reference field(s). The example is below.
Validate and submit the journal to workflow.
- Verify that Total Debits equal Total Credits. The journal must balance.
- Click Save & Edit.
- Click Save & Submit.
The approvers of each chart string review and approve the reversal. The word "REVERSAL" appears with the transaction on the GL008 Revenue and Expense Activity Report.
Create a new Agency Journal (AGY) that records the transaction correctly. For help with that procedure, refer to Creating Agency Journals.
Why not use one journal to both reverse the mistake and settle the transaction?
- Following the three steps in this process creates a history that is easy to follow. You also see a complete transaction trail on the GL008 Revenue and Expense Activity Report.
- The process satisfies the needs of Accounting Services for financial reporting and control.
- Though other methods are possible, this method:
- Preserves the original journal lines
- Isolates the reversal in a transaction that is separately trackable, and
- Isolates a correct transaction in a separate AGY that is also separately trackable.