All transactions in Jiwa result in a journal in the general ledger. Journals can also be entered directly into the general ledger. These are called 'local' sets.
There are two major types of journals:
- Internal/Local - where the journal is generated from within the General Ledger module i.e. General Journals; and
- External - where the journal set is created from transactions in external modules e.g. creditor invoice from the Creditor module, stock transfer from Inventory
Within these major categories there are several types of journals:
- Normal journal - to post day to day journal sets
- Template or recurring - journal set created as a template for regular journal transactions with repeating instructions set to control the posting of sets created from the template. The journal created from the template is posted when an Automatic Journals transaction is created for the relevant posting date
- Pending - a journal set with no posting date so that it can be held until required or completed at when all the information is known
- Reversal - a normal journal that is being reversed at a predetermined date
- Normal - where the journal set is valid and has been posted to the ledger with the Description field referencing the originating transaction e.g. Receive Inventory
- Errored- where the journal set has not been accepted by the General Ledger - e.g. set not balanced, incorrect dates, missing account number(s). This will only happen when the system in the Ledger tab - SaveErroredSets is ticked. System Configuration#Ledger
For a General Journal to be posted and update the General Ledger, the following must apply
- debits and credits are equal
- line dates must all be in the same General Ledger period as the header
- all lines must have a valdi ledger account; and
- the ledger period must NOT be Externally Locked
Saving a Normal journal entry updates the ledger immediately. Corrections to the journal can only be made by reversing the journal and creating a new correct journal.
The exception to that is BAS codes can be changed on a posted journal where:
- System Configuration > Ledger > AllowBASCodeChange is ticked System Configuration#Ledger
- The ledger period the journal is posted to is not globally locked
NOTE: as soon as you click Save, the journal is posted and cannot be amended. It is a good idea to make the journal Type Pending until you are ready to post it.
Creating a new journal
- General Ledger > Journal Transactions > Journal Sets
- Click New
- Change the Type to Pending (so that you can save before posting).
- Enter a description in the header section. You can click Save now and the journal won’t be posted, you can still make changes
- Use the search arrow to look up and select the relevant ledger accounts
- When the journal is ready, change the Type back to Normal and click Save.
Note: the date on each individual line must be within the same month as the Posted Date in the journal header section
Automatic journals - recurring and reversals
Journals can be created to repeat every month or every day. For example, monthly lease charges, recurring depreciation, provisions.
Steps to set up the template
- Create a new journal set of type Template
- Add a description and the relevant ledgers and posting amounts.
- Set the Repeat instructions by using the drop down to select Months or Days
- Set the date of the next posting. Jiwa will automatically update this date after every posting.
- If Repeating End is unticked, the journal will repeat indefinitely.
Steps to post each month
- If your logged in date is the day of the next posting, or after the next posting, create a new Automatic Journal
- General Ledger > Journal Transactions > Automatic Journals
- Click New
- The form is now populated with a batch that will display any templates due for posting on or before the creation date of the Automatic Journal. The batch also displays journals for reversing.
- Delete unwanted journal sets using the Waste Bin
- Save the form
- New journal sets are posted for the selected automatic journals, with the description field in the new journal set referencing the original template. Posted details are updated with the template date and user login name.
- The original template is updated to reflect the last posting date and the next posting date due for the journal. Drill down to the destination and source sets is available from the Automatic Journals form.
Note: This process does not create all the required journals on one form where two or more dates have been missed for a template – e.g. monthly template and three months have passed since the last Automatic Journals process was run. A new Automatic Journals form will need to be created for each missed period.
Reversing a journal
The only change that can be made to a Normal journal entry once it has been saved is to reverse the entry - the exception is the modification of BAS Codes. The entire journal set must be reversed, as line changes cannot be made. The reversal parameter options are:
- Next period start
- Specific period start
- On a specific date
When the entry is saved, the status of the journal is changed to Waiting for a Reversal and user details are updated. The Automatic Journals function will process the journal reversal and create a new journal set for the date specified.
The originating journal is updated with the status Reversed and the Description field is updated with the comment - Reversed on Set xxx.
Journals can be imported automatically into Jiwa as csv or xml files using the Jiwa File Watcher Plugin.
Journals can also be imported manually into Jiwa as xml files using the Utilities menu on the Journal Sets form.
Refer to your Program Files directory for example csv files for importing.
The following is an example xml journal set file.
Errors can result in the journal set not being posted and being given a status of Error (Not Posted). The errors must be corrected and the journal saved to post the entries to the General Ledger.
Some of the reason that errors can occur are:
- Transaction codes need to be selected to complete the journal set
- Journal attempting to post to a locked period
- Ledger accounts not set up correctly for the originating transaction - eg classification ledger accounts not set up for the creditor on a purchase order
If the journal override feature is OFF, the System Maintenance Ledger setting SaveErroredSets determines whether journals in error can be saved. The switch must be selected (ON) to allow journals in error to be saved otherwise the source form will not activate.
The System Maintenance, Ledger setting, WarnWhenErroredSets, determines whether a warning message displays when loading journals and errored journal sets exist.
- General Ledger > Journal Transactions > Journal Sets
- Select journal set from search window - set filter to Errored Sets for quick access
- Click Test Postings to ascertain the errors
- Correct outstanding errors
- Save changes to the journal set
If the journal is posting to a locked period, change the status of the ledger period to Open in the General Ledger Setup form and save the journal.The status on the journal is changed to Normal once the set has been corrected and saved.