Journal Entry

Menu Path: General Ledger $Images\bluerarw.gif$ Journals $Images\bluerarw.gif$ Journal Entry

Purpose

Enter journal transactions.
Copy journal entries.

Overview

Use Journal Entry to enter general ledger journal entries. After your general ledger is set up, you can begin to enter journal transactions.

When you create a journal entry, you first define the nature of the journal entry. The posting period and year, and the currency for the journal entry use the default settings. One of the posting options will be filled in according to the default setting in Ledger Maintenance. The bottom portion of the window serves as a notepad for developing the contents of the journal entry. The Credits/Debits grid contains a list of every line entered during your journal entry generation. The totals and difference displayed beneath the grid keep track of calculations made with the debits and credits. The sum of the debits and credits are displayed separately, while the difference displays the difference between the totals. You can enter or select a general ledger account using the Lookup buttons. You can select a general ledger project number using the Lookup button, or create one using the Project Maintenance ribbon button.

Posting Options

Although you defined the default posting option in Ledger Maintenance, the software allows you to override this default when making a journal entry. You may select either direct post, hold for review, or manual post.

If you want to have your general ledger updated automatically whenever a journal entry is made, use the direct post option. If you select this option, you need only enter a journal entry for it to be posted; no further posting action is necessary.

If you want to create a journal entry and then manually post it, use the manual post option. You can post journal entries in Journal Entry Post.

You can also put journal entries on hold until they are reviewed. After making a journal entry, you must review it in Journal Entry Hold Management.

Note You cannot edit a posted journal entry.

Creating Journal Entries

To create a new journal entry:

If your company uses consolidation ledgers, verify the ledger ID for which you want to create a journal entry is entered in the Ledger ID field.
Enter a posting period and posting year in the Posting Period and Posting Year fields.
Enter a comment in the Comment field.
Click the Lookup button for the Currency field, and select the currency for the journal entry. If you select a currency that is not the default general ledger currency, the Conversion Rate to field appears, and displays the conversion rate to the default general ledger currency. If necessary, you can then update the conversion rate for the journal entry.
Select a posting option.
If the journal entry is going to be used for tax purposes only, select the Tax Only Adjustment check box.
Indicate whether or not you want to be able to generate a reversing entry. If so, you must decide between automatic and manual generation. If you select the Automatic Reversal radio button, select the period and year for the reversing entry.
If the transaction date for the journal entry is not the current date, enter the transaction date in the Transaction Date field.
Enter a general ledger account at the G/L Account field. The DR Amount or CR Amount field is automatically selected based on the default for the account defined in Account Maintenance; you can, however, override this default.
Enter the debit or credit amount in the DR Amount or CR Amount field.
If the selected account requires a general ledger project number (according to Account Maintenance), you must enter one in the Project # field.
If you entered a cash account in step 9, enter the bank reconciliation date for the journal entry in the Bank Reconciliation Date field.
Click the Add button. The account and amount are entered in the Credits/Debits grid, and the G/L Account, DR Amount/CR Amount, and Project # fields are cleared so you can enter information for another credit or debit. The totals and difference fields below the grid reflect the entered line.
Repeat steps 9 to 13 for other credits and debits required for the journal entry.
If you need to delete a line, simply double-click the line you want to delete. The line’s information appears in the correct fields, and you can either make adjustments and add the line again, or clear the fields by clicking Cancel.
When you finish adding lines, you can click the Totals button in the ribbon to double-check your work using the hash totals feature in G/L Journal Hash Totals.
To make the journal entry, click the Make Journal Entry button in the ribbon. The unique journal entry number assigned to the journal entry is displayed. This is the number that will refer to that journal entry in subsequent programs and/or reports. If you selected direct post as the posting option, the entry will be posted directly to the general ledger.

Note You cannot add a line without entering a project number if one is required. The totals and difference do not reflect the credit or debit amount of a statistical account because the amount is not monetary. Also, the user-defined unit of measure appears next to the amount when a line is added. You cannot make a journal entry unless the credit and debit totals are equal. To make the journal entry for the selected account(s), you must have the authorization to do so, which is defined in Account Maintenance.

Saving as a Recurring Entry

If you anticipate repeated usage of the current journal entry, you can save it during the journal entry process as a recurring entry. In defining a recurring entry, you can indicate how frequently the recurring entry should be generated and/or posted. To save the current journal entry as a recurring entry, select the Save As Recurring Entry check box, and then enter the recurring entry information in Recurring Entry Definition.

Generating a Reversing Entry

If you anticipate the need to make an adjusting journal entry, you may want to take advantage of the reversing entry feature. For example, if a shipment comes in during the current period, but the bill comes at a later date, you may want to make a journal entry for the shipment. However, you know when the bill comes in, you will need to make an adjusting entry. The software allows you to automatically make the reversing entry at the time of the current entry generation.

Ribbon Home Tab Buttons

Button	Description
Exit	Click this button to close the Journal Entry window.
Cancel	Click this button to clear all entered information for a journal entry you are entering.
Make Journal Entry	Click this button to save an entered journal entry. Before saving the entry, the system validates the journal entry; if it is valid, it makes the entry. The system then returns the journal number of the generated entry. Note If the Direct Post radio button is selected, the journal entry is posted immediately to the general ledger.
Company Analysis	Click this button to display G/L Company Analysis, which allows you to view journal entries for companies. Company values are defined in Ledger Maintenance.
Project Maintenance	Click this button to display Project Maintenance, which allows you to define or edit projects.
Totals	Click this button to display G/L Journal Hash Totals, which allows you to double-check your entry by adding account element numbers together.
Remarks	Click this button to display Detail Remark, which allows you to enter a remark for a journal entry.
Profitability Information	Click this button to display Journal Line Profitability Entry, which allows you to view or enter customer, product, and supplier profitability information for a selected journal entry line. This button is only enabled for functional ledgers.

Ribbon Batch Tab Buttons

Button	Description
Select	Click this button to display Select a New Batch, which allows you to select a previously created batch.
Open	Click this button to display Open a New Batch, which allows you to create a new batch.
Close	Click this button to display Close A Batch, which allows you to close a batch.
Edit	Click this button to display Edit A Batch, which allows you to edit an existing batch.
Post	Click this button to display Journal Entry Post, which allows you to post journal entries for the selected batch.

General Tab Fields and Buttons

Field or Button	Description
Copy Entry #	Enter a journal entry number if you want to copy a previously entered journal entry to a new journal entry, or click the Lookup button to select a journal entry number. If you copy a journal entry, you can edit the copied journal entry before saving it.
Posting Option	Select one of the following options to indicate how the chart of accounts should be updated when journal entries are generated: Manual Post - Require the journal entry to be manually posted to the general ledger. Hold for Review - Place the journal entry on hold for manual review before posting to the general ledger. Direct Post - Update the general ledger automatically as soon as the journal entry is made (without requiring manual posting). Note You cannot edit a directly posted entry after generation. To correct an erroneous entry, you must make a reversing, or adjusting, journal entry. You cannot edit or post on-hold entries until you review and release them from hold. This option defaults from the posting option selected in Ledger Maintenance. These radio buttons are only enabled if the Allowed to Update Posting Method check box is selected for your user ID in User Profile Maintenance.
Ledger ID	Enter a ledger ID for the journal entry, or click the Lookup button to select a ledger ID. Note This field is only available if at least one consolidation ledger is set up.
Posting Period	Click the Lookup button to select the general ledger accounting period against which the current journal entry is being made.
Posting Year	Click the Lookup button to select the general ledger accounting year against which the current journal entry is being made. Note You can only change the year if you are authorized to make adjustments to prior years. This field defaults to the current year.
VAT Date	Enter the VAT date used to determine the exchange rate for the journal entry, or click the drop-down arrow to select the VAT date. This defaults to the current date. Note This field is only available if Show is selected for the VAT Display Level field in Tax Control Maintenance.
Batch #	This field displays the batch number against which the journal entry is being made. The batch number can be used to group journal entries for later reporting or analysis. Use the buttons on the Batch tab in the ribbon to select, open, close, and edit batches.
Tax Only Adjustment	Select this check box to indicate that the journal entry is solely for tax adjustment purposes. EXAMPLE You depreciate assets one way for financial reporting and another way for tax reporting. You can make a tax-only adjustment journal entry that allows you to see the financials for tax reporting without affecting your regular general ledger for financial reporting.
Save As Recurring Entry	Select this check box to save the journal entry as a recurring entry. When you select this check box, the Recurring Entry Definition window appears, and allows you to set up the recurring entry.
Comment	Enter a brief description of the journal entry or source.
System ID	Enter the system ID for the journal entry, or click the Lookup button to select a system ID. This field is only available if the selected ledger for the journal entry is used by multiple system ID's.
Currency	Click the Lookup button to select the currency for the journal entry values. When the journal entry is posted, the currency is converted to the currency of the general ledger with the most recent conversion rate.
Conversion Rate to	Enter the exchange rate between the currency entered in the Currency field and the default general ledger currency. This defaults to the current exchange rate set up in Currency Exchange Rate Maintenance. This field is only available if you enter a currency in the Currency field that is not the default general ledger currency.
Reversing Entry	Select one of the following options to indicate if you want to generate a reversing entry: No - Do not generate a reversing entry. If you want to generate a reversing entry later, you can do so in Ad Hoc Reversing Journal Entry. Manual Reversal - Use Manual Reversing Journal Entry to make the reversing entry. Automatic Reversal - Generate a reversing entry when you save the current journal entry. If you select this option, select a period and year for the reversing entry.
Reversing to Period	Click the Lookup button to select the period for the reversing entry. This defaults to the next open period. This field is only available if you select the Automatic Reversal radio button.
Reversing to Year	Click the Lookup button to select the year for the reversing entry. This defaults to the year for the next open period. This field is only available if you select the Automatic Reversal radio button.
Remark	Enter a remark for the journal entry.
Transaction Date	Enter the date of the transaction for the journal entry, or click the drop-down arrow to select the date of the transaction. This defaults to the current date.
G/L Account	Enter a general ledger account number for the account against which a credit or debit amount is being entered, or click one of the Lookup buttons to select a general ledger account number or description.
Template	Click this button to select a general ledger account from the accounts in a journal template after you enter a template ID in the Template ID field.
G/L Elements	Click this button to display G/L Prompting, which allows you to enter a general ledger account by account element.
DR Amount	Enter an amount to apply as a debit for the journal entry.
CR Amount	Enter an amount to apply as a credit for the journal entry.
Project #	Enter the project number against which the specific detail credit or debit entry being made applies, or click the Lookup button to select a project number. For information on setting up projects, see Project Maintenance. Note This field is mandatory if the account requires a project number, as defined in Account Maintenance. The project number must be a valid project number. If you are authorized to do so, you can dynamically define new project numbers when you enter a journal entry.
Template ID	Enter a journal template ID, or click the Lookup button to select a template ID. After you enter a template ID, you can click Template to select an account from the template. Journal templates can be set up in Journal Entry Template Maintenance.
Remark	Enter a remark for the credit or debit. This remark can be viewed on reports.
Bank Reconciliation Date	If you are entering a journal entry for a cash account, enter the bank reconciliation date for the journal entry. This field is only available if you enter a cash account in the G/L Account field.
Add	Click this button to add the debit or credit to the journal entry.
Remove	Click this button to remove the debit or credit selected in the grid from the journal entry.
Clear	Click this button to clear all fields for the debit or credit you are entering.
VAT Entry	This check box is selected by default if you enter a VAT account in the G/L Account field. Note This check box is only available if Show is selected for the VAT Display Level field in Tax Control Maintenance.
Input VAT/Output VAT	These radio buttons indicate whether the credit or debit is for input or output VAT if the VAT Entry check box is selected. Note These radio buttons are only available if Show is selected for the VAT Display Level field in Tax Control Maintenance.
Country	This field displays the country for the VAT class entered in the VAT Class Code field.
VAT Class Code	Enter a VAT class for the journal entry if it is a VAT entry, or click the Lookup button to select a VAT class. For information on setting up VAT classes, see VAT Class Maintenance. This field is only enabled if you enter a VAT account in the G/L Account field.
Current VAT Rate	This field displays the current VAT rate for the VAT class entered in the VAT Class Code field.
VAT Basis	Enter a VAT basis for the credit or debit. This field is only enabled if the VAT Entry check box is selected. Note This field is only available if Show is selected for the VAT Display Level field in Tax Control Maintenance.
VAT ID	Enter your company's VAT ID for the credit or debit, or click the Lookup button to select a VAT ID. For information on setting up VAT IDs, see VAT ID Maintenance. This defaults to the VAT ID for the company account element of the first entered general ledger account. Note This field is only available if Show is selected for the VAT Display Level field in Tax Control Maintenance.
Credits/Debits	This grid displays information for all credits and debits for the journal entry. The total amount of all credits must equal the total amount for all debits. Double-click a credit or debit to remove it from the grid, and then edit or delete it.
Total Debits	This field displays the total debits for the journal entry.
Total Credits	This field displays the total credits for the journal entry.
Difference	This field displays the difference between total credits and total debits for the journal entry.