This article will walk you through the steps to create a new Journal Entry. Please note, if you are entering a large Journal Entry, you may want to use the Journal Entry Import function. This functionality will you allow to import a pre-defined template. You can also use the Memorized Transaction or GL Allocation Template function, which allows the User to create a Journal Entry Template that can be used repeatedly.
It is important to note that Journal Entries will not be automatically Approved when manually entered and saved in the system. When the JE is Approved, the reversing entry, if needed, will post as well.
Step 1: Hover over 'Account' in the top ribbon and select 'Journal Entry.'
Step 2: When the Journal Entry opens, fill in the required Date and Location fields and add an optional comment in the Comment field.
Users can also have this form auto-filled from a GL Allocation Template if this Journal Entry is for an expense that needs to be spread to other accounts. Click here to learn more about GL Allocation Templates.
1) Date - The current date will auto-populate this field. Update the Date value to the Date of the Journal Entry (date of posting)
2) Number - This value with auto-populate with the next transaction number. The starting number and prefix can be adjusted on the Autonumbering Page
3) Type - The type of User-created Journal Entry. This is simply used to help Users identify Journal Entries in the Journal Entries, All Transactions, and Transaction Details list views. Click here to learn more about Journal Entry Types. Options include:
- Standard - This type is the default and should be used to record daily transactions as needed. Imported Journal Entries have this Type set as the default option
- Amortization- This type should be used to allocate an expense of an intangible item over a service period
- Note: This is simply an identifier and does not currently connect to the Spreading feature
- Adjustment - This type should be used to correct a Standard Journal Entry made in a prior period that was incorrectly entered
4) Location - The default Location assigned to your User record will load in this field. Update the Location to represent the Location that will be the primary Location on this Journal Entry. You can still use this form to record Journal Entry details for multiple Locations. Restaurant365 will automatically create the necessary 'Due to' and 'Due from' transactions between Legal Entities when necessary. Click here to change the default Location via User Preferences
- Note: The default Location will also be listed in the Location field in the 'Details' grid unless otherwise updated in User Preferences
5) Comment - Comments will appear in the 'Journal Entry List View' for reference
6) Link to Asset - If your organization is using the Fixed Assets Module, you can link a Journal Entry transaction directly to an Asset Record using this checkbox and the Asset Selector that appears in the Details grid
7) Use Preset Allocations Selector - Toggle this on to choose from a list of Preset Allocations. A Preset Allocation will spread the amount entered to preselected GL Accounts and Locations based on their preset allocation percentages. Click here to learn more about Preset Allocations
Step 3: Select GL Account(s).
Begin typing the name or number (depending on your Account Lookup setting in System Preferences) of the GL Account.
Step 4: Assign Debits and/or Credits to the GL account, enter optional Detail Comments, and confirm/update the Detail Location (this value will be automatically set to the same Location entered in the Journal Entry header).
Enter Debit and/or Credit Amount to the selected Account and a comment in the 'Comment' field if desired. From here, confirm or update the Location in the 'Location' field. This can be done by selecting and entering the corresponding details or by using the following keyboard shortcuts:
- Move between fields by pressing 'Tab'
- Press 'Backspace' / 'Delete' to remove the listed Location
- Add one or more Location(s) by pressing the down / up arrow until the correct Location and then 'Enter' / 'Return' to select the Location
- Remove one or more Location(s) by pressing down the down / up arrow until the correct Location and then 'Backspace' / 'Delete' to deselect the Location
- Note: If more than one Location is selected, the amount listed will be equally distributed across all selected Locations when added.
Click the 'Add' button to add the detail line to the Journal Entry Details grid. Depending on the detail type that was just entered (Debit or Credit), the identical Amount will load in the opposite type for the subsequent balancing entry.
Step 5: Continue adding Details until complete.
After the first Detail line has been added, the Amount value will automatically set the opposing detail type (Debit or Credit) for the next Detail line. Complete this Detail line like the previous line, then continue adding details until the Journal Entry is complete.
Step 6: Review, Save and Approve the Transaction
Journal Entries will not be Approved upon entry. Ensure that the information is entered correctly before Saving and/or Approving this entry.
For information on reversing a Journal Entry, view the Reversal Journal Entry article here.