GL Transactions Overview

Before you enter GL Journal transactions, obtain a copy of the chart of accounts for each company and a detailed list of the latest entries you need to make for each company. You can use original documents (check register, invoices, books of original entry), but make sure that you have all of them; each company’s entries must balance.

You can enter transactions for only one company at a time. Before you select the Transactions function, make sure that the correct company and date appear on the main menu.

You can enter transactions only in your current fiscal year.

Each transaction has a two-character source code that indicates the origin of the transaction. You can use the source code to select the types of entries to include in the GL Journal and the GL Activity Report.

The default source code for entries made in the Transactions function is M1. You can change the second character to any other numbers or to letters to distinguish the entry, but the first character must be the letter M (manual entry).

You can enter an auto reversing accrual transaction with source code R1 to reverse the transaction automatically (see Automatically Reverse Accrual Entries) in the next period.

The following list contains suggestions for assigning source codes:

• Assign source codes for special entries; for example, use MY for year-end audit adjustments.
• Assign a character to each week in the period. When you print a GL Journal that contains transactions with the same source code, you can see the entries for a particular week.
• Assign a different character to each person who makes entries, so that you know who entered each transaction.

The following table lists assigned source codes:

The system assigns source code R2 to transactions that automatically reverse R1 transactions.

If you want the General Ledger system to reverse accrual entries automatically, enter the accrual transaction with source code R1. The system generates a transaction for the next period that reverses the accrual entry. The reversing entry has a source code of R2.

For example, suppose that your company usually has accrued wages at the end of the month. You could enter R1 transactions to account for the accrued wages expense. The next month the system would generate R2 transactions that reverse the accrual entries, saving you that step. When the wages are paid, you enter transactions for the full amount.

An R1 accrual transaction you enter in the last period of the current fiscal year will be reversed in period one of the next fiscal year if you selected No for the Use Period 13 For Normal Processing option in the business rules function. If you selected Yes the R2 transaction would be put into your extra period (13) at the end of the year.

You can make automatic allocations by entering the account number that is set up in the Account Allocations function and selecting the Allocate box. When you post to master transactions to account numbers that have selected allocation boxes, they are distributed to the accounts specified in the allocation record.

Double-entry bookkeeping requires an offsetting credit for each debit and vice versa. You must continue entering transactions until the balance of the entries is zero.

If you need to leave the screen in an out-of-balance situation, you can enter the forced-balance password in the Out of Balance dialog box. This dialog box appears when you try to close a screen when it is out-of-balance.

If you save an incorrect transaction, use the Edit Transactions function to correct the problem, or enter a reversing transaction and then enter the transaction correctly.

Each time you enter journal transactions for a company, print the GL Journal for that period so that you have an audit trail of the transactions.