Recording General Ledger Journal Entries

A general ledger entry is an accounting entry recorded directly to the general journal. When you use e-automate, the software makes several entries to the general ledger from various modules such as Accounts Receivable, Accounts Payable, Sales, Service Dispatch etc. e-automate makes a distinction between entries that are made by the various modules and entries in which a user defines a list of debits and credits and posts them to the general journal. Entries that are defined by a user with debits and credits are listed in the GL Journal Entries window.

When using the GL Journal Entries window, you should not make general ledger entries to any of the protected accounts. Accounts are protected in e-automate to allow you to reconcile the e-automate module details back to the balance sheet so you can support your balance sheet numbers with detailed subsidiary ledger reports. The most common modules protected and reconciled in e-automate are accounts receivable, accounts payable, inventory, and cashbook accounts. Additional modules that can be reconciled based on operational processes of a company are the deferred contract revenue accounts and fixed assets. Entries for protected accounts should be processed and posted in their respective modules to keep the reconciliation integrity.

Journal entries are typically used to make corrections or adjustments. Examples of adjusting journal entries include:

Accruing wages earned by employees but not yet paid to them

Accruing the employer share of FICA taxes due

Recording interest expense paid on a mortgage or loan and updating the loan balance

Recording prepaid insurance

Recording depreciation expenses

Adjusting for bad debts

You can make the following four primary types of journal entries in e-automate:

Normal: A typical journal entry. This can be either a regular journal entry or a reversing journal entry. If you check the Reversing checkbox, e-automate posts the entry defined in the window and posts an equal and opposite entry in the subsequent period, thus reversing the entry.

Note: Both the entry and the reversing entry have the same date. In order to see the effect of these entries, you must run your reports by period.

Recurring: Allows you to choose from a list of recurring journal entry templates. If you need to post a journal entry every month, you should consider creating a recurring journal entry template and then using the Journal Entry window to select and post the entry. Creating a recurring template does not post the entry; you can post the entry using the GL Journal Entries window, batch posting by using the Post Recurring Journal Entries window or by setting up e-agent to post the recurring entries automatically and notify of the entry by email.

Correcting: Used to correct a previously posted journal entry. Before opening the General Ledger Journal Entry window to make a correcting entry, you should identify the journal entry you want to correct. You should only correct entries that were posted using the General Ledger Entry window. If the entry can be fixed in the Accounts Receivable, Accounts Payable, Inventory, Cashbook, Contract Accruals, or Fixed Asset modules, you should correct it in the appropriate module. When you select and complete a correcting journal entry, e-automate locates the identified entry and posts an equal and opposite entry and then posts the corrected entry. This allows the system to maintain its auditable nature.

Void: Used to void a previously posted journal entry. When you choose to void an entry, e-automate posts an equal and opposite entry. You should only void entries that were created in the GL Journal Entries window. Module entries should be handled by the respective module.

Getting to the TransactionGetting to the Transaction

From the Accounting menu, select General Ledger > Journal Entries to open the GL Journal Entries window.

Click [New] to open the New General Ledger Journal Entry window.

Basic InfoBasic Info

In the Entry Type field, use the drop-down menu to select the type of journal entry to be made (Normal, Recurring, Correcting, or Void).

Do ONE of the following:

To record a Normal journal entry, complete the following fields as appropriate:

Type: Type of journal transaction.

Note: The system automatically enters GJ for General Journal, but you may change it.

Description: Brief description of the journal entry.

Reversing: When checked, the system creates an equal reversing journal entry in the next accounting period.

Note: You use a reversing entry to record a journal entry for an entry you want reversed in the next accounting period. Creating a reversing entry eliminates the chance you will forget to reverse an entry at a later time.

Date: Date of the journal entry.

Reference: The system automatically enters (Next), but you may change it.

To record a Recurring journal entry, complete the following fields as appropriate:

Recurring number: Number of the recurring journal entry template.

Type: Type of journal transaction.

Note: The system automatically enters GJ for General Journal, but you may change it.

Description: Brief description of the journal entry.

Reversing: When checked, the system creates an equal reversing journal entry for the next accounting period.

Date: Date of the journal entry.

Reference: The system automatically enters (Next), but you may change it.

To record a Correcting journal entry, complete the following fields as appropriate:

Entry number: Number of the existing journal entry to be corrected.

Type: Type of journal transaction.

Note: The system automatically enters GJ for General Journal, but you may change it.

Description: Brief description of the journal entry.

Reversing: When checked, the system creates an equal reversing journal entry for the next accounting period.

Date: Date of the journal entry.

Reference: e-automate automatically enters [Next], but you may change it.

Void reference: e-automate automatically enters (Next), but you may change it.

To record a Void journal entry, complete the following fields as appropriate:

Entry number: Number of the existing journal entry to be corrected.

Type: Type of journal transaction.

Note: The system automatically enters GJ for General Journal, but you may change it.

Description: Brief description of the journal entry.

Void reference: e-automate automatically enters (Next), but you may change it.

If you set Entry type to Void in Step 1, e-automate inputs the entry details in reverse amounts from the original general ledger entry you chose to void. If you set Entry type to Normal, Recurring, or Correcting in Step 1, do any of the following:

To QuickAdd a journal detail to the journal entry, do the following:

In the General ledger account field, use the lookup to select the account to which the journal detail will be posted.

In the Department field, use the lookup to select the department to which the journal detail will be posted.

In the Branch field, use the Lookup icon to select the branch to which the journal detail will be posted.

Note: Branch is only displayed if enabled.

In the Description field, enter a description of the journal detail.

Note: E-automate enters the description entered from the header Description field automatically, but you can change it.

Do ONE of the following:

To record a debit, enter the debit amount in the Debit field.

To record a credit, enter the credit amount in the Credit field.

Click [QuickAdd] to add the journal detail to the Entry Details region.

Repeat Steps a through f for each journal detail to be included in this entry.

Note: Debit and credits must equal to allow e-automate to accept the entry.

To Add journal detail to the journal entry, do the following:

Click [Add] to open the Add General Ledger Journal Entry Detail window.

In the Account field, use the Lookup icon to select the account to which you want to post this journal entry.

In the Department field, use the lookup to select the department to which you want this entry associated.

In the Branch field use the Lookup icon to select the branch to which you want this entry associated.

Note: The Branch field is only displayed when branching is enabled.

In the Description field, type a description of the journal detail.

To record a debit, in the Debit field, type the debit amount.

To record a credit, in the Credit field, type the credit amount.

To associate this journal detail to a customer, in the Customer field use the lookup to select a customer.

Click [Add] to add the details to the Entry Details region and enter another journal detail; or click [OK] to save the entry detail, close the window, and return to the Add General Ledger Journal Entry window.

Repeat Steps a through i to add additional entry details until the sum of the debits equals the sum of the credits.

To change journal entry detail, do the following:

In the Entry Details region, select the journal detail to be changed. e-automate displays the journal detail information in the fields at the bottom of the window.

Change the appropriate fields at the bottom of the window.

Click [Update] to change the information in the Entry Details region.

Note: You can also modify the entry details, including customer, by selecting the journal detail to be changed and clicking [Edit]. Make the necessary changes, and then click [OK].

To delete a journal detail, do the following:

In the Entry Details region, select the journal detail to be changed.

Click [Delete] to open a window asking if you want to delete the journal entry line.

Click [Yes] to remove the journal detail from the Entry Details region.

Repeat Step 3 until all the journal details for the journal entry are complete.

Completing the TransactionCompleting the Transaction

Click [OK] to post the journal entry.