QUESTION:

When should Journal Entries be used?


RESPONSE:

The Journal Entry module and Journal Entry Adjustment Wizard tab are used:

  1. To change a category that was incorrectly posted to the Ledger
  2. to split revenue/expense transaction that was originally recorded under one category and is required to be distributed between more than the original category.
  3. All revenue/credit adjustments display in the Credit column.


The difference between them is

  1. The Journal Entry Adjustment Wizard is used for Transactions NOT Reconciled.
    1. The Tab can be found in both the Ledger Inquire and Reconciliation Modules.
    2. Some users may not have access or see the Journal Entry tab and/or module.
    3. It is possible the district has it set that only district staff can perform a Journal Entry.
  2. The Journal Entry Module (from Main Menu) is used for Reconciled Transactions.


Journal Entries are automatically cleared on the system

Year-End Rollover Reports and Report #18 (Government Report) will include all Journal Entry transactions.



PROCESS:

Main Menu > General Activities > Journal Entries

 

Journal Entries

 

                              

Credit = Revenue            Debit = Expense

  1. Journal Entry for Revenue (Credit) 

Used to transfer revenue to another category to provide support for an activity/event,
 i.e. similar to an income to income transfer in Quicken

 

Scenario:   Fundraising Category is giving the ATH – Basketball Category money, for regional tournament attendance.

 

Date:

Defaults to today’s date

From Category:

Fundraising 

(The category that we are taking the money From to give to another category)

Amount:

$1,000.00

Reason:

To assist with Regional Tournament

To Category:

ATH - Basketball

(The category that we are going to give the money TO so we can support the activity/event)

Amount:

$1,000.00

 

Select Add to Ledger
System will preview what will appear on the Ledger.

 

Select Continue

 

Ledger Inquire view

 

  1. Journal Entry for Revenue (Credit)

Used to transfer revenue from one category to many categories to reallocate funds.

 

Scenario:   Several types of Fees were collected and deposited into one category (Student Fees).

Time to reallocate these fees to the other categories.

 

Date:

Defaults to today’s date

From Category:

Student Fees

(The category that we are taking the money From to give to another category)

Amount:

$10,000.00

Reason:

Reallocation of Student Fees

To Category:

Yearbook

(The category that we are going to give the money TO so we can support the activity/event)

Amount:

$6,500

 

Select the  button to add another category to give the money to

Continue to add another category, as noted below:

 

Select Add to Ledger

System will preview what will appear on the Ledger.  Select Continue

 

Ledger Inquire view

 

 

  1. Journal Entry for Revenue (Credit) 

Used to correct a deposit, posted to an incorrect category and has already been reconciled.

 

Scenario:   Deposit #1 was incorrectly posted to the SC BBQ category; revenue should have been posted to SC Milk.

 

Date:

Defaults to today’s date

From Category:

SC BBQ

(The category money is being removed From, was posted to incorrect category)

Amount:

$929.75

Reason:

Dep#1 – Incorrect Category

(Reference the Deposit # in the Reason for audit purposes)

To Category:

SC Milk

(The category money is going to, the category which should have received revenue in the Deposit/Receipts module)

Amount:

$929.75

 

 

Select Add to Ledger


 

 

 

System previews what will appear on the Ledger.  Select Continue

 

 

Ledger Inquire view

 

 

  1. Journal Entry for Expense (Debit) 

Used to correct a cheque posted to an incorrect category and has been reconciled

 

Scenario:   A cheque (expense) should have been written against the Agenda category, 

but the cheque was written against Fundraising Breakfast Club category.

 

Date:

Defaults to today’s date

From Category:

Agendas

(The category that should have incurred the expense in the Issue Cheques module.)

Amount:

$150.00

Reason:

Cheque #690 – Incorrect Category

(Reference Cheque # in Reason field for audit purposes)

To Category:

Fundraising – Breakfast Club

(The incorrect category that we are going to reverse the expense to in the Issue Cheques module)

Amount:

$150.00

 

Select Add to Ledger

 

System previews what will appear on the Ledger.  Select Continue

 

Ledger Inquire view

 



An Instruction Guide - Transfer Entries