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 What is the difference between General Journal Entry, Recurring Journal Entry, and Transaction Journal Entry?

There are several options in General Ledger for entering journal entries. Based on the type of journal entry, you can use General Journal Entry, Recurring Journal Entry, or Transaction Journal Entry to enter and post journal entries to the general ledger.

The following information provides an overview of these options.

Use General Journal Entry when:

• Journal entries consist of details closely related to a single purpose, for example a one-time journal entry

• Entering a journal entry to save as a standard journal for future use

• An adjustment must be made to an existing journal entry

• Entering miscellaneous journal entries

Use Recurring Journal Entry when:

• Entering journal entries of fixed amounts that repeat each period, such as depreciation and amortization

Use Transaction Journal Entry when:

• Entering journal entries with a large number of separate transactions, such as cash receipts or cash disbursements

• Entering journal entries for posting fund transfers between banks (only if the Bank Reconciliation module is integrated with General Ledger)

 

 Can I void a journal entry in General Ledger?

There is no way to void a journal entry in the General Ledger module. The entry must be reversed using General Journal Entry to the date it was originally posted. For more information, see Create a Reversing Journal Entry.

 

 Can I post to future accounting periods?

The General Ledger module allows you to post journals to future accounting periods without restrictions. You can post journals to any future fiscal year. Posting and reporting future accounting periods allow you to process transactions for the next fiscal year before completing the current year. A fiscal year can then remain open until you have made all adjustments to that year. When you are posting to future periods of the same fiscal year, the posting amount is reflected in the appropriate period for each account.

General Ledger reports are designed to print information for any accounting period of the current year. You can produce financial reports for any prior fiscal year or the next fiscal year. Reports printed for two or more years in the future will not simulate the year-end rollover of account balances.

If you enter a journal entry for a future period, or if you attempt to print registers in other modules (such as Accounts Receivable or Accounts Payable) with the accounting date set for a future period, a warning message appears.

 

 How do I delete a saved Standard Journal Entry in general ledger?

You can use General Journal Entry to delete an existing standard journal. For more information, see Delete a Standard Journal.

 

 What happens during the update process for general ledger journals and registers?

When you print a general ledger journal or register, you are given the option to update it to the general ledger. This update process not only posts all journal and register entries to the general ledger, but also performs calculations such as creating new fiscal years, calculating beginning balances for fiscal years, and updating journal and register history. Most of these tasks are performed by the system automatically during the update.

The following series of tasks occurs when you print a journal or register and update it to the general ledger:

• The journal or register is printed, exported, or e-mailed.

• During the update, if the posting date for the journal or register occurs in a fiscal year that does not exist, the system creates all fiscal years up to and including the fiscal year of the posting date.

• The system calculates the beginning balances for all new fiscal years, and updates the beginning balances for existing fiscal years. To do so, it uses the following calculations:

• For each general ledger account, the ending balance of the last fiscal year prior to the current fiscal year is calculated as:

Beginning balance of previous fiscal year + debits – credits

This calculates the ending balance for the last fiscal year, and the beginning balance for the current fiscal year. For example, if the current fiscal year is 2003, the beginning balance for 2002 plus the total debits for 2002, minus the total credits for 2002, is the ending balance for 2002. The ending balance for 2002 is used as the beginning balance for 2003.

• The same calculation is performed for the current fiscal year:

Beginning balance of current fiscal year + debits – credits

This calculates the ending balance for the current fiscal year, and the beginning balance for the next fiscal year. Beginning balances for all accounts are created for each new fiscal year that is added.

• For asset, liability, equity, and nonfinancial accounts, the system uses the beginning balances calculated in the previous step. For revenue, cost of sales, expense, other income & expense, and income tax accounts, the beginning balance is zero, and the beginning balance calculated for those accounts is added to the beginning balance of the retained earnings account.

• The journal or register history is updated. This allows you to reprint the journal or register at a future time. The following history files are updated:

• G/L General Journal History

• G/L Transaction Journal History

• G/L Recurring Journal History

• For General Journal updates, if a reversing date was entered, the postings are reversed and duplicated using the reversal date. Also, the last posting date for manual allocations is updated.

• The Source Journal History is updated.

• The G/L Detail Posting information is updated.

• The G/L Period Posting History is updated with the fiscal year, posting period, debit and credit amounts for the current fiscal year and posting period, and the updated beginning balances for future fiscal years that have been posted to.

• Transaction Journal entries are updated to Bank Reconciliation.

 

What are the error codes in the journal update error log, and how do I fix them?

If errors occur while you are printing the General Journal, Recurring Journal, Transaction Journal, or Allocation Journal, an error log is produced to provide details about the error conditions. The Daily Transaction Register does not produce an error log.

The error log for general ledger journals prints a separate section for each error condition, as follows:

 Error Condition 1 - Not On File G/L Accounts with History

This section prints the full account number, description, source journal, journal entry number, and line number for the account that is not on file.

The error is most likely due to some kind of file corruption. Contact your Sage business partner or support representative for information about the error and how to resolve it.

 

 Error Condition 2 - Not On File G/L Accounts

This section prints the source journal, journal entry number, and line number for the account that is not on file.

The error is most likely due to some kind of file corruption. Contact your Sage business partner or support representative for information about the error and how to resolve it.

 

 Error Condition 3 - Account Status Invalid

This section prints the full account number, description, source journal, journal entry number, and line number for the account with invalid status.

The error indicates that the status of the account is not active. Only accounts with a status of active can receive postings from the General Ledger module or other modules. An account with a status of inactive cannot receive postings.

To verify the status of the account, select General Ledger Main menu > Account Maintenance. On the Main tab, the selection at the Status field indicates the current status of the account. For more information, see Account Maintenance.

 

 Error Condition 4 - Account Start Date Invalid

This section prints the full account number, description, source journal, journal entry number, and line number for the account with the invalid start date.

The error indicates that, in one or more journal entries, a posting date has been entered for a general ledger account that precedes the start date for the account. You must either change the start date for the account or change the posting date for the entry.

 

 Error Condition 5 - Account End Date Invalid

This section prints the full account number, description, source journal, journal entry number, and line number for the account with the invalid end date.

The error indicates that, in one or more journal entries, a posting date has been entered for a general ledger account that falls after the end date for the account. You must either change the end date for the account or change the posting date for the entry.

 

 Error Condition 6 - Not on File Source Journals

This section prints the source journal code of the source journal that is not on file.

The error indicates that the source journal does not exist in the source journal file. You can recreate the source journal using Source Journal Maintenance. For more information, see Source Journal Maintenance.

 

 Error Condition 7 - Non-Financial Accounts on Financial Journals

This section prints the full account number, description, source journal, journal entry number, and line number for the nonfinancial account that is on the financial journal.

The error is most likely to occur when data is imported into the General Ledger module, as nonfinancial accounts cannot be entered in financial journals using general ledger journal entry windows. You must correct the journal entry before updating the journal. Contact your Sage business partner or support representative for information about the error and how to resolve it.

 

 Error Condition 8 - Financial Accounts on Non-Financial Journals

This section prints the full account number, description, source journal, journal entry number, and line number for the financial account that is on the nonfinancial journal.

The error is most likely to occur when data is imported into the General Ledger module, as financial accounts cannot be entered in nonfinancial journals using General Ledger journal entry windows. You must correct the journal entry before updating the journal. Contact your Sage business partner or support representative for information about the error and how to resolve it.

 

 Error Condition 9 - Out of Balance Journals

This section prints the source journal, journal entry number, and dollar amount for the out-of-balance condition.

The error indicates that an entry exists that is out of balance, where credits do not equal debits. You can correct the out-of-balance entry by creating a one-sided journal entry. For more information, see steps 9-11 of Fix an Out-of-Balance General Ledger.

Contact your Sage business partner or support representative for information about the error and how to resolve it.