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Rules for Allocation Journal Entries

(revised 2/1/12)

All Allocation Journal Entries (using 16xx account codes), in addition to moving “actual” funds using Rule Class JE2, must also include entries, using Rule Class BD4, to adjust revenue and expense budgets.  NOTE:  This only affects Allocation entries that were not previously budgeted.  If a JE2 Allocation entry is submitted without a BD4 budget entry, please fully explain why in Document Text.  Without budgets being adjusted, the index receiving the allocation will not be able to spend the funds due to NSF reject.  NSF reject is currently in place for unrestricted I&G, Public Service (including Non-endowed spending), and Research funds, and Athletics.  However, other fund types can be subjected to NSF reject at any time.  Therefore, for consistency, all allocations must be budgeted.

To move the Revenue budget, the index being debited (“giving” money) using account code 16xx with Rule Class JE2 would also have a BD4 entry for the same amount to 16xx, using a “minus” sign in order to reduce the budget.  The index being credited (“receiving” money) using the same account code 16xx with Rule Class JE2 would also have a BD4 entry for the same amount to 16xx, using a “plus” sign to increase the budget.

To move the Expense budget, the index “giving” part of its budget will need to reduce the budget in the appropriate expense account code(s), using Rule Class code BD4 and a “minus” sign.  The index “receiving” additional budget will need to increase the budget in the appropriate expense account code(s), using Rule Class code BD4 and a “plus” sign.

All three necessary parts of an Allocation transaction (moving actual Revenue, Revenue budget, and Expense budget) should be entered in the same Journal Voucher.  As mentioned above, if the Allocation was previously budgeted and you are not submitting the BD4 entry in your JV, please mention this in the Document Text field.  Remember to use the appropriate Rule Class code (JE2 or BD4) for each part.

If necessary, you can edit an existing JV that has been completed but not yet posted.  On form FOADOCU, enter your JV number in the “Document” field and perform a next block.  Click on the “X” icon under “Deny Document”, and this will place the JV back into incomplete status.  You may then edit the JV on FGAJVCQ, and resubmit for approval.

Also, please note that movement of Reserve amounts from one index to another using account code 1903 must also be budgeted to account code 1901, using rule class BD4 as described above.  In addition, to be able to spend any Reserve amount in your index (in account code 1900), the amount must also be budgeted to account code 1901 using BD4.  Please contact the Budget Office at 277-6465 for assistance.

For Main Campus and Branch unrestricted indexes and Agencies, the rules for Allocations and Change in Reserve entries follow.  These types of entries are only allowable between indexes within the same level 2 Program (with the exception of I&G, in which case entries between P09 through P14 are allowable) and level 2 Fund, and cannot cross campuses.  Please refer to the Fund Hierarchy Report and the Program Hierarchy Report in e-Print if you are uncertain of whether your entry will qualify.  If your entry does not qualify as an allocation, it may need to be a Transfer.  Please click here for more information on Transfer journal entries.

Please contact the appropriate Financial Services accounting office if you have questions on these procedures:

Unrestricted Accounting – Main Campus (main and branch campus unrestricted; agencies) 277-2018

Unrestricted Accounting – HSC (Health Sciences Center unrestricted) 272-6264

Also, for additional assistance in determining if your proposed transaction should be an Allocation or a Transfer, a MyReports tool is available, which will allow you to enter the indexes for your proposed entry, and will tell you what type of entry you should process.  The report is named “FORITAH HSC Transfer Allocation” and can be located by accessing the “F HSC Reports” folder, which is under the “Finance” folder in MyReports.