Purpose
The purpose of this Quick Reference Guide (QRG) is to provide conceptual information on the Journal Entry Approval process in the North Carolina Financial System (NCFS).
Introduction and Overview
This QRG covers the overview of Journal Entry approval in NCFS to control and monitor the approval process for Journals, and to validate the accuracy of Journal batches before posting to the General Ledger (GL).
Key Terms
The table below provides a description of the key terms relevant to the Journal entry approval process:
| Key Terms | Description | |
| Journal | A component of a Journal Entry consisting of the name, accounting date, category, and ledger that is used to group two or more journal lines. | |
| Journal Entries | Journal Entries are used to record financial transactions to the system's GL. Journal creation, posting, and editing, work together in the recording process to produce accurate financial records. | |
| Journal Approval | Journal approval process is obtaining the necessary management approvals for Journal Batches from different sources such as manual, interface, spreadsheet, and from different categories such as DEP, PAY, NC AGY INTERNAL BC ENTRY. | |
| Journal Posting | The process of using journal entries to update account balances in the general ledger. | |
| Ledger | Central repository for accounting information that provides near real-time visibility of financial results. | |
| Journal Batch | A batch can contain multiple journals. All the Journals created under the batch inherit the batch details and are posted together. In NCFS, you need to update 1 journal per batch, due to category distinction and approval routing. | |
| Batch Status | Indicates the current posting status of the Journal. |
Journal Entry Approval Overview
The steps below provide conceptual information on the Journal Entry approval process. There are 6 steps to complete this process.
Step 1. The user creates a Journal Entry.
Step 2. The Journal approver receives a notification when the user requests the approval of the Journal Entry.
Step 3. The Journal approver validates the Journal input data to ensure accuracy of information.
Step 4. The Journal approver either approves or rejects the Journal Entry, based on its field values.
Step 5. If the Journal Entry is approved, it is routed to posting. If the Journal Entry is rejected, it is routed back to the Journal Entry organization, with a rejection reason, for review and maintenance.
Step 6. The user receives a system notification indicating the approval or rejection of the Journal Entry.
Journal Review by Transaction Types (DFF)
The Journal Entry reviewing, and approving organization is dictated by the Journal Entry’s transaction type (DFF).
The table below illustrates the reviewing organization, and schedule for approvals for DEP and PAY transactions to post the same day:
| Transaction Type (DFF) | Reviewing & Approving Org. | Approval Time | Posting Time | |
| DEP - ACH/WIRE | Agency (Level 1) and DST (Level 2) | An ACH/Wire Deposit must be approved by 9:44 a.m. to be posted on the same day. | An ACH and Wire Deposit posts daily (Monday – Friday) at 9:45 a.m. | |
| DEP - CASH & CHECK | Agency (Level 1) and Auto Approved (Level 2) | A Cash and Check Deposit must be approved by 9:44 a.m. to be posted on the same day. | A Cash and Check Deposit posts daily (Monday – Friday) at 9:45 a.m. | |
| DEP - INTEREST ALLOCATION | Agency (Level 1) and Auto Approved (Level 2) | An Interest Allocation must be approved by 9:44 a.m. to be posted on the same day. | Interest Allocation posts daily (Monday – Friday) at 9:45 a.m. | |
| DEP - CREDIT CARD | Agency (Level 1) and Auto Approved (Level 2) | A Credit Deposit must be approved by 9:44 a.m. to be posted on the same day. | A Credit Deposit posts daily (Monday – Friday) at 9:45 a.m. | |
| PAY - 1 - DEBT SERVICE | Agency (Level 1) and OSC (Level 2) | A Debt Service must be approved by 12:59 p.m. to be posted on the same day. | A Debt Service posts daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 2 - PAYROLL | Agency (Level 1) and OSC (Level 2) | A Payroll must be approved by 12:59 p.m. to be posted on the same day. | A Payroll posts daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 3 - STATE AID | Agency (Level 1) and OSC (Level 2) | A State Aid must be approved by 12:59 p.m. to be posted on the same day. | A State Aid posts daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 4 - HEALTH/PROVIDER | Agency (Level 1) and OSC (Level 2) | A Health/Provider must be approved by 12:59 p.m. to be posted on the same day. | A Health/Provider posts daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 5 - E-PAYMENT | Agency (Level 1) and OSC (Level 2) | An E-Payment must be approved by 12:59 p.m. to be posted on the same day. | AN E-Payment posts daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 6 - GENERAL EXPENSE | Agency (Level 1) and OSC (Level 2) | A General Expense must be approved by 12:59 p.m. to be posted on the same day. | A General Expense posts daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 7 - TRANSFERS OUT | Agency (Level 1) and OSC (Level 2) | Transfers Out must be approved by 12:59 p.m. to be posted on the same day. | Transfers Out post daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 8 - REVENUE REFUNDS | Agency (Level 1) and OSC (Level 2) | Revenue Refunds must be approved by 12:59 p.m. to be posted on the same day. | Revenue Refunds post daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 9 - IGO | Agency (Level 1) and OSC (Level 2) | An IGO must be approved by 12:59 p.m. to be posted on the same day. | An IGO posts daily (Monday – Friday) at 1:00 p.m. | |
| PAY - 10 - SPECIAL FUNDS | Agency (Level 1) and OSC (Level 2) | Special Funds must be approved by 12:59 p.m. to be posted on the same day. | Special Funds post daily (Monday – Friday) at 1:00 p.m. | |
| PAY - STIF - AP | Agency (Level 1) and Auto Approved (Level 2) | STIP-AP must be approved by 12:59 p.m. to be posted on the same day. | STIP-AP posts daily (Monday – Friday) at 1:00 p.m. | |
| PAY - STIF - EPAY | Agency (Level 1) and Auto Approved (Level 2) | STIF-EPAY must be approved by 12:59 p.m. to be posted on the same day. | STIF-EPAY posts daily (Monday – Friday) 1:00 p.m. | |
| Transfer | Refer to the note below. | Transfer must be approved by 12:59 p.m. to be posted on the same day. | A Transfer posts daily (Monday – Friday) at 1:00 p.m. |
Note: Transfers are entered and approved in Intercompany module by Agency and OSC or auto approved, based on Transfer type (DFF).
The table below illustrates the reviewing organization, schedule for approvals, and descriptions for OSC transactions to post the same day:
| Transaction Type (DFF) | Description | Reviewing & Approving Org. | Approval Time | Posting Time | |
| OSC UNRESERVE FB RECLASS | Legislatively mandated transfer from unreserved fund balance to a reserve account. | OSC Management | Must be submitted for approval by 10:30 a.m. and approved by 12:59 p.m. to be posted on the same day | AutoPost runs daily (M-F) at 1:00 p.m. | |
| OSC FB TF OUT TO NON-RESV | Legislatively mandated transfer from unreserved fund balance to a non-reserve account. | OSC Management | Must be submitted for approval by 10:30 a.m. and approved by 12:59 p.m. to be posted on the same day | AutoPost runs daily (M-F) at 1:00 p.m. | |
| OSC INTER-RESV TRANSFER | Legislatively mandated transfer from one reserve account to another reserve account. | OSC Management | Must be submitted for approval by 10:30 a.m. and approved by 12:59 p.m. to be posted on the same day | AutoPost runs daily (M-F) at 1:00 p.m. | |
| OSC ANNUAL EST REVENUE | OSBM authorization of estimated annual revenues. | OSC Management | Must be submitted for approval by 10:30 a.m. and approved by 12:59 p.m. to be posted on the same day | AutoPost runs daily (M-F) at 1:00 p.m. | |
| OSC ANNUAL APPROPRIATION | OSBM authorization of annual appropriations. | Agency & OSC Management | Must be submitted for approval by 10:30 a.m. and approved by 12:59 p.m. to be posted on the same day. | AutoPost runs daily (M-F) at 1:00 p.m. |
Note: Schedule is subject to change.
Journal Rejection
The Journal could be rejected for the following reasons:
- Incorrect deposit/disbursement categories
- Insufficient funds
- Transactions have a future date
- Budget funds not in balance
- Incorrect account value(s)
- Missing attachment
If a Journal batch is rejected, the following are the steps to resolve the issue. There are 3 steps to complete this process.
Step 1. Rejected Notification: A notification will be sent to the user, with a rejection reason once the Journal Entry has been Rejected.
Step 2. Edit the Journal Entry: Once the rejection notification has been received, the user will edit the Journal by navigating to the Manage Journals page via the Journals app within the General Accounting tab.
Step 3. Resubmit for Approval: Once the necessary information has been edited the user must resubmit the journal batch for approval.
Wrap-Up
Approved Journal Entries are eligible for posting. After a Journal Entry is posted to the GL, account balances are updated accordingly.
Additional Resources
- Web-Based Training (WBT)
- Virtual Instructor-Led Training (vILT)