NUFinancials Correcting a Posted Internal Sales Journal (ISJ)

This article describes a three-step process to correct an Internal Sales Journal (ISJ) that was previously approved and posted to the General Ledger.

Correct a Posted Internal Sales Journal

How do you correct an Internal Sales Journal (ISJ) that was previously approved and posted to the General Ledger with a mistake in it? Corrections are a three-step process for which the seller 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 Internal Sales Journal (ISJ) to correctly record the sale

You must have the Original Journal ID of the journal to be corrected. You can find it in NUFinanicials Budget Inquiries or on the GL008 Revenue and Expense Activity Report in the period the transaction was posted to the General Ledger.

Step 1: Find and copy the original posted journal

  • 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 in step 5. From the Actuals Journal Search on the NUPortal, or the Journal Search in NUFinancials, search for the original journal using the Journal ID from the GL008 or other source.
  • Alternately, from the Navigator > NU Actuals Journals > Add/Update Actuals Journals

 ISJ-1

  1. Enter the Journal ID.
  2. Click Search. Result: the original journal appears. Scroll down to find the Copy button.

ISJ-2

  1. Click Copy. Result: a new journal is created, an editable copy of the original.

Step 2: In the copy, reverse the mistakes of the original journal

ISJ-3
  1. In Journal Purpose, click Correction to Sale or Service.
  2. In Original Journal Detail, enter the Original Journal ID and press <Tab> on your keyboard. Result: the Posted Date of the journal appears.
  3. In the Reason / Description field, explain the correction.

Reverse the signs of expense and revenue amounts.

In Journal Lines, reverse the signs of the amounts on the incorrect lines to zero-out the amounts.

ISJ-4

  1. Reverse the sign on the revenue The result is it is a debit (+), shown below.
  2. Reverse the sign on the expense line. The result is a credit (-), shown below. In the Reference fields, you may also want to type "REVERSAL" for easier recognition on reports.

Validate and submit the journal to workflow

  1. Click Save & Edit.
  2. Verify that Total Debits equal Total Credits (the journal must balance) and both the journal and budget status are valid (V/V)
  3. 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.

Step 3: Create a new Internal Sales Journal (ISJ) to correctly record the sale

Create a new ISJ that records the sale correctly. For help with that procedure, refer to the NUFinancials Actuals Journal Training Guide. For help with more complex scenarios, contact Accounting Services at accounting@northwestern.edu.

Final Notes

The preferred process is to reverse the original journal and submit a separate correction journal.

This creates history that is easy to follow and that satisfies financial reporting and control needs. You see a complete transaction trail on the GL008 Revenue and Expense Activity Report, which:

  • Preserves the original journal lines
  • Isolates the reversal in a separate transaction that is separately trackable, and
  • Isolates a correct transaction in a separate ISJ that is also separately trackable.

You may include the reversal and correction within the same journal as long as the journal rules are followed (for example, the journal must have both the 5 series and 7 series accounts in the journal). The reversal and correction lines must be separately identifiable and amounts may not be netted.

For additional assistance please contact the IT Support Center at 847-491-4357 (1-HELP) option 7, or consultant@northwestern.edu.




Keywords:ISJ "Internal Sales Journal" "Correct Journal" "Edit Journal" "Posted Journal" "journal" "journals"   Doc ID:116959
Owner:ESAF GL Team .Group:Northwestern
Created:2022-02-23 16:15 CDTUpdated:2022-04-25 09:14 CDT
Sites:Northwestern
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