Friday, 1 November 2013

Recurring journals


Recurring journals

The journals which are repeated one or more periods or more than once in a period is called as recurring journals. Such as fixed utilities, rent, wages salaries etc…
In application recurring journals are classified in to three types:
1.       Standard journals.
2.       Skeleton journals.
3.       Formula journals.
Standard journals:
                Standard journals use fixed account combination and amounts each accounting period. You enter a journal using constants. For example monthly rent, salaries, with constant amounts charged to the same account.
Skelton journals:
                Skeleton journals are having varying amounts in each accounting period. You can define recurring journals without amounts, and then enter the appropriate amounts each accounting period. There are no formals to enter, only account combinations. For example, you can record temporary labor expenses in the same account combination every month with varying amounts due to fluctuations in hours.
Formula journals:
                A formula entry is recurring entry that uses formulas instead of amounts to calculate amounts. For example calculate rent expenses based on end-of-month head accounts.
To define recurring journals Templates:
Navigation:
                                                Journals=> define => recurring
1.       Enter Batch name.
2.       Enter description (optional).
3.       Select batch type single ledger or multiple ledgers.
4.       Enter journal name.
5.       Select ledger.
6.       Enter category.
7.       Select currency.
8.       Chose lines.
9.       Enter line number in the field.
10.   Enter the account.
11.   Enter line description (optional).
12.   Enter standard amount.
13.   Save your work.
14.   Add new line.
15.   Enter line number in the field.
16.   Enter the account combination.
17.   Enter line description (optional).
18.   Enter standard negative amount.
19.   Save your work.
NOTE:
·         Enter Expenses account (Debit Account),liability account(credit account) and the amounts for Standard Recurring Journal
·         Enter only Debit and credit accounts for skeleton recurring, do not enter amount.
·         Enter debit account & enter the formula  for Formula recurring journal
·         In formula recurring journal do not enter amount for line 2. System will add all the debit lines amount and consider the credit amount as offset account.
To Generating journals:
                                                Navigation:
                                                Journals=>generate=>recurring
1.       Select batch name.
2.       Select period.
3.       Click on generate.
To checking journals:
Navigation:
Journals=>enter
·         Select source is recurring.
·         Click on find.
·         Now you can see the journals.
·         Post the journal.
NOTE: For Skelton recurring journal you can enter amount in journals lines before you post the journals.
Additional information:
1.       In which period we are going to create recurring journals, that period must be opened.
2.       Single ledger batches affect only one ledger in the batch.
3.       Multiple ledger batches can affect multiple ledgers in the batch. You can define recurring journal formulas across ledgers.
4.       Single ledger need to provide ledger name at batch level.
5.       Multiple ledger need to provide ledger name at journal level.
6.       According to recurring template negative amounts are credits and positive amounts are debits.
7.       If you want to run a recurring batch for multiple ledgers from responsibility that responsibility should have access to the data of multiple ledgers.
8.       You can only define single ledger batch types for budget formulas.
9.       You can use Automatic Journal Scheduling to generate your recurring journals according to a specific schedule you define.
10.   We can enter 9999 lines in a recurring journal. In which 9998 lines are for debit lines and only one line is for credit line. We call this line as offset account line. Hence we have to enter line 2 as an offset line and key in the number 9999 in line 2.
11.   Do not enter amount for line 2. System will add all the debit lines amount and consider the credit amount as offset account.
12.   If you wish to enter more credit lines, we have to give negative sign for the lines, for example -9998, -9997 etc.




                               








               


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