What You Should Know
Cost Transfer/Correction Journals are only to be used for correcting previous transactions, and should be entered within 90 days of the original transaction. If the original transaction occurred more than 90 days ago, a Cost Transfer Justification Form may be required.
Learn how to Create a Cost Transfer/Correction Journal
Cost Transfer/ Correction Journal are used to:
- Correct the chartstring of a journal that have posted to Prime Financials.
- Correct transactions made to a Sponsored Project (known as a cost transfer) or any other activity (not related to Sponsored Projects).
Cost Transfer/ Correction Journals are not used to:
- Make Budget changes. Contact the Budget Office for Budget changes.
- Correct Labor Accounting journals. These changes must be made in LA.
- Move spendable balance to another chartstring. This is done with an Assignment or Transfer Journal.
- Correct an expense because the wrong Account was entered
- Add a Program after it was initially left off an expense
- Move an airfare expense from one Sponsored Research project to another
- Move an entertainment expense from a Sponsored Research project to a different chartstring
- If you discover that you charged an expense that did not meet the restrictions of that Fund, you can correct that error by using a Correction/Cost Transfer Journal.
- Transaction goes through one of the following approval routes:
- If a Cost Transfer Justification Form (CTJF) is required, then approval routes to departmental Approver, then to the PI, and then to Sponsored Research
- If CTJF is not required, approval routes only to the departmental Approver
Cost Transfer Specifics
- Should be entered within 90 days of the original transaction
- If not entered within 90 days, the Cost Transfer Justification Form (CTJF) may be required based on Sponsored Research Accounting (SRA) rules
- For Government Sponsored Awards, if the transfer occurs 90 after the end of the month in which the cost was originally incurred, the CTJF is required
- Used for expenses only
Line Detail - Original Journal ID
The Cost Transfer/Correction Journal requires the original Journal ID, another useful tool for reconciliations. The Original Journal ID can be found on FIN041 Payables Detail in the Journal ID column. For AP journals being corrected, be sure to use the APL (not APP) number in the Correction Journal.
Cost Transfers/Corrections Line Descriptions
The line description should not be a general statement such as “Reclass Expense”, especially if that Account has many lines of detail. You want to be able to isolate the charges that were corrected.
Depending on the type of charge being corrected, the Line Description should contain one or more of following:
- Original Voucher #
- Original Vendor Name
- Original Transaction Description
- Original Transaction Date
- Reason for Reclassification
- Destination chartstring
- Original chartstring
AP voucher 00001234 paid to Acme Corp on 9/30/14 in the amount of $600 for Bunsen burners was charged to Account 6352 – Department 11111 – Fund A0000. This $600 charge should have been posted to Account 6456 – Department 11111 – Fund A0000. The charge needs to be reclassed since the burners are a lab supply and not a general office supply.