SOP No: FS-GP07

SOP Library

SOP NO: FS-GP07 (List of Exhibits/Attachments)

Mission: Finance and Administration

Area: Financial Services (FS)

Activity: General Accounting Plan (FS-GP)

Title:

Revised SOP on Use, Preparation and Control of Journal Vouchers

Date Approved/Issued: 04/21/1988

Date Effective: 05/01/1988

Digest:

I. TERMS OF REFERENCE

A. Rationale

B. Objective

C. Scope

D. Basis

II. IMPLEMENTING GUIDELINES

1. Journal Voucher shall be used to record transactions which cannot be entered in any of the special journals. Example of these transactions are as follows:

1.1 All stock transactions except procurement and transfer. These shall cover issues/receipts to and from drying, milling, remilling, recording costs of sales, rice allowance and sales on credit;

1.2 To set-up receivables based on documents and bills such as shortlanded shipments of stocks, claims from insurance companies for damaged stocks, rent, telex, disallowances and transfer of accountabilities;

1.3 Issues of office/construction supplies or materials and accountable forms, gasoline for NFA/subsidiaries executives;

1.4 Allocation or distribution of cost;

1.5 Accumulated depreciation, amortization of bond discounts, allowance for doubtful accounts, allowance for inventory variance;

1.6 Accruals and adjustments for prepaid expenses;

1.7 Receipt of allotment from national government;

1.8 Adjustments/corrections, reclassification, reversal, cancellation of accounts previously recorded; and

1.9 Other transactions which can not be recorded in any of the special journals.

The

Journal Voucher

(JV)

2.1 A

is not an accountable form in itself. It shall only be considered a valid document once the form is fully accomplished and signed;

2.2 It shall provide columns for account code, account title, debit column and credit column. Enough space for explanation is likewise provided;

2.3 A fully accomplished JV is signed by the following persons in the space/box provided for:

Box

Signatories

Prepared by - Bookkeeper/Accounting Clerk

Checked by - Chief of Section or Provincial

Accountant

Pre-Audited - Auditor-in-Charge

Posted by - GJ Keeper

Preparation of Journal Vouchers

3.1

The frequency of preparation of JV shall be dependent upon the nature of transaction to be recorded:

3.1.1 For transactions involving stocks and MTS, JV shall be prepared weekly based on the Weekly Statement of Receipts and Issues of stock/MTS as supported by WSIs, WSRs, ESIs, ESRs;

3.1.2 For transactions pertaining to setting up of claims, JV shall be prepared once the amount has already been determined as supported by bills, debit memo, etc.;

3.1.3 JV for issues of construction/office supplies and materials, accountable forms and gasoline for executives shall be prepared at month end taken from their Monthly Report of Issues based on approved RIVs, IRAFs, etc.;

3.1.4 JV for accumulated depreciation, amortization of bond discount shall be prepared at end of the month, while allowance for doubtful accounts and allowance for inventory variance shall be prepared quarterly and annually, respectively;

3.1.5 JV for accruals shall be prepared monthly based on the Monthly based on the Monthly Statement of Accrued Expenses (SOP on Accounting for Accrued Expenses), bank tickets, etc.;

3.1.6 Reversal of entry shall be journalized at beginning of the month (F.O.)/year (C.O.)

3.1.7 Adjustments/corrections, reclassification shall be made once the error has been detected.

3.2 JV shall be prepared in four (4) copies. Copy distribution shall be as follows:

Copy 1 - COA/General File

2 - COA/Examiner who handles the account

3 - GJ posting copy

4 - Section who prepared the JV

3.3 The JV shall have sufficient explanation so that the users will have ready information on details of the entry.

3.4 The complete account title and code shall be indicated in the JV. They shall be based on the latest NFA chart of accounts. Opposite the account is the corresponding amount under the debit or credit column. The total of the amounts in one column must always be in balance with the other.

3.5 All JVs shall be pre-audited by COA before they shall be entered in the books. They shall be supported by xeroxed/original copies of documents to facilitate pre-audit. These supporting documents shall be retained by COA for file.

Control of Journal Vouchers

4.1 All JVs shall be forwarded to the control clerk before they shall be transmitted and received by COA for pre-audit. A control number shall be assigned to all unaudited JVs for monitoring purposes. The control number shall be coded as:

C - X - XX

C shall stand for the word control, the first X shall stand for the month and the double XX shall stand for the numerical sequence of the JV.

4.2 All JVs shall be recorded in a

control logbook

with the following column headings: Date, Control Number, JV Number, Particulars.

4.3 After the JV has been pre-audited and returned by COA, a JV number shall be assigned before the same shall be posted/entered in the General Ledger. The JV shall be coded as follows:

Year code Month Code Numerical Sequence

JV (NN) (N) (N)

Year code - refers to the year in which the voucher was prepared.

Month code - each month shall be represented by numbers starting from

1 for January up to 12 for December. This identifies the

month in which the transaction was recorded in the books.

Numerical Sequence - series during the month.

Filing of Journal Voucher

5.1 Journal vouchers shall be filed sequentially;

5.2 They shall be bound and fastened at the top. Each file shall not exceed more than 3 cm. for better storage.

5.3

The bounded JVs shall be segregated according to month. There maybe several bounded JVs for each month. They shall be labelled showing the following:

JV - year - month (volume # / # of volumes for the month)

Eg.: JV - 88 - 1 (vol 1 / 3)

General Journal

6.1 All approved JVs shall be entered in the General Journal sequentially indicating the date of entry, JV #, account titles, explanation, account code and amount in the columns provided for;

6.2 All entries shall be summarized at the end of the month and posted to the General Ledger.

III. RESPONSIBILITIES

IV. DATA FLOW DIAGRAM

IV. FLOW CHART
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EXHIBITS

Journal Voucher

Control Logbook

DFD-Journal Voucher