Basic Overview of Journals

PPT by Manoj K Email: manojpushpa@gmail.com

Topics That I Will Cover

Balance
Primarily requires the user to validate that the journals that are posted are balanced. Total Debit should add to up Total Credit for the given time period.

Auto Reverse
This allows the user reverse the values for Debit and credit in the next period.

Reopen in Next Period

This allows the user to reopen the journal entry for the next time period.

Journal Screen Interface

Most of the steps will start from this screen to illustrate Balance, Reopen in the next period, and Autoreverse. Its important that you are working correct model for the Journal entry (located on the top right part of the screen). I will be using Consolidation and Sales Revenue model for the 3 examples. Once you have selected the right model, Click on New for Journal Entry.

Balance
For the Balance example I will be using the Sales Revenue Model. We need provide data for Account revenue, Entity, and Interco Dimensions.
Account Revenue will be primarily Accounts Recievable and Accounts Payable. Entity will be India Interco will be India as well

Once we provided the Dimension data, we need to input Debit or Credit value for the Journal Entry.

Balance (contd)
This is a typical scenario for Balanced feature as illustrated below: Its Important that the user checks off Balanced and the values for Debit and Credit should be equal. If the values dont equal, then the Total bar will be highlighted red and you will not be able to post it. In the next screen, you will have to verify the post and click on OK.

Balance (contd)
Once the user posted the journal, Journal entry screen will be locked so that the user will be able to change the values. In this instance, the user has 3 options:
Close the journal entry screen (to accept the entry). Unpost the journal entry (similar to Undo and allows the user the edit the values). Report (allows the user to view Journal Entry properties like who created the journal, Status, model that is effected, dimensions used, the values that are inserted, etc. Next slide illustrates the report.

Balance (contd)

Balance (contd)
In this example, we are balancing the entry case by case. Other option forces users to Balance the entry at a global level.
This situation is useful for consolidation purposes, because the business groups wants the bookkeeping accurate on monthly basis. The Disadvantage when using this feature is that once you have set Enforced Balanced Journals, it makes the user balance all the journal entries posted for the model. Location of Enforced Balanced Journals is illustrated in the next slide.

Balance (contd)

AutoReverse
This feature allows the user to switch the values for debit and credit the next period. This is useful for monthly bills that are relatively constant like rent, utility bills, etc. In the next slide (slide 11) I will illustrate the basic fields that will be filled and make sure that AutoReverse feature is checked off. I will be using the Sales Revenue model for this example. I will be using January 2011 time period for inserting the journal entry, but the Autoreverse will take place for Febuary 2011 time period to see if AutoReverse took place once the user has posted the entry. Difference between the time periods can be viewed between slides 11 and 12. Slide 12 illustrates where the AutoReverse took place. Important point to notice is that the values for Debit and Credit have been switched. Compare the values we posted to the values that were used for the AutoReverse feature.

AutoReverse (contd)

AutoReverse (contd)

Reopen in Next Period

This feature allows the user to reopen in the next period (usually the following year). The Administrator has to do 2 things before he is allowed to use that feature:
Enabling the feature (which is illustrated in Slide 14) Setting up the Reopen Rules (Slide 15 illustrates the parameters I used for the Reopen Rules).

I will be using Consolidation Model to illustrate this feature.

Reopen in Next Period

Reopen in Next Period

Its important that I am using Rate Type as way of filtering and I keeping Source Info same as my Destination Info (this allows me to reopen this entry in the following year).

Reopen in Next Period

Once we have taken care of those 2 conditions, we can start entering values journal entry form. Whatever conditions that we have specified in the Reopen Rules, we have to match in the journal entry form. Also, we need to check off Reopen in Next Period Box. Since we are specifying for February 2011 time period for Journal Entry, we need check February 2012 to see if Reopen in Next Period took place. Slide 17 illustrates the parameters that the user filled in for the Journal Entry.

Reopen in Next Period