Accrue & Reverse Journal Entry (UG)

Owned by Emma Greenwood
Last updated: Nov 26, 2018

Overview

NorthScope allows users to reverse journal entries to give users the ability to account for a bill that affects the GL at a later date.

Prerequisites

Required Prerequisites 

  • Financial Account setup

Optional Prerequisites

  • Multi-Currency setup
  • Project setup

Understanding the Data Flow

Once a journal entry is set to ‘Ready to Post’ and the integration to the Host system is set to immediate or timed, the journal entry appears in the Host system’s Financial module.

Step 1: Entering an Accrue & Reverse Journal Entry in NorthScope

Entering a new Accrue & Reverse Journal Entry in company currency

From NorthScope, expand the Financial Module on the navigation menu and select “Journal Entries”. This will open the Journal Entries List View, all Journal Entries with the current status of New, Approved and Ready To Post.

Click the “New” icon in the header toolbar and select Accrue & Reverse to open a blank journal entry record.

Completing the header fields

The record opens with the following tabs and fields:

Home tab:

  • Comment: Enter a comment for the journal entry. This field is optional and can be left blank.
  • Currency: This drop-down menu displays all active currencies configured in the system to allow users to select the Journal Entry currency. The currency defaults to the company currency saved in the Company Preference ‘Default Currency ID’. This field is only editable, if the company has multiple currencies configured in the Currencies list view and the record status is New.
  • Date: Identifies the date that the journal entry will post to the GL. This field defaults to the current date but is editable. The date must reside within an open fiscal period.
  • Rate: This field is only editable when the Currency selected is other than the Company currency, the Exchange Table selected is Manual and the record status is New. This field allows users to enter an Exchange Rate, which is used to calculate the Home Debit and Home Credit amounts in the grid section. The field defaults to the Exchange Rate Type when an existing Exchange Table is selected. Note: The record must be saved first in order to edit the field.
  • Table: This drop-down menu allows users to select an Exchange Table for the Journal Entry. The field is only enabled when the Currency selected is other than the company currency and the record status is New. The field defaults to the first exchange table with the selected currency but can be changed to Manual to allow manual rate entry.  Note: The record must be saved first in order to edit the field.
  • Journal ID: Displays the ID number for the journal. This number is automatically generated by the system and cannot be edited. When the Journal Entry integrates with the host system, it will inherit the next Journal ID from the host system.
  • Journal Type: Identifies the journal entry type ‘Manual’ or ‘Accrue & Reverse’. This field is for informational use only and is never editable.
  • Rate Type: This field is only editable when the Currency selected is other than the Company currency, the Exchange Table selected is Manual and the record status is New. The field allows users to select a Rate Type from Multiply and Divide. The Rate Type determines how the Home Debit and Home Credit amounts are calculated in the grid section. The field defaults to the Exchange Table Rate Type when an existing Exchange Table is selected.  Note: The record must be saved first in order to edit the field.
  • Reference: Enter a reference for the journal entry. This field is optional and can be left blank.
  • Reversing Date: Identifies the date for the reversing journal entry. The date defaults to the current date and is required. The date must be the same or later than the Date on the record.
  • Source: Identifies the source of the journal entry, ‘GL-Accrue & Reverse’ is displayed. This field is for informational use only and is never editable.
  • Status: Identifies the current status of the journal entry. The entry will be listed as either “New”, “Approved”, or “Ready to Post”. Line items must be added in order to approve or post a journal entry.  Records with a Status of "New" can be fully edited, records with a Status of "Approved" will only allow edit of the Status, and records with a Status of "Ready to Post" cannot be edited.  Note: The Status can also be updated from the Journal Entries List View via the Mass Update toolbar icon. 

Properties tab:

  • Class: Displays the Transaction class associated with the Journal. This value defaults to 'Default', is not editable and is for information only.
  • Created: Displays the date and time the Journal was created.  This field populates when the record is created and does not update after that. This field is not editable and is for information only.
  • Created By: Displays the username of the user that created the Journal. This field populates when the record is created and does not update after that. This field is not editable and is for information only.
  • Journal Header SK: Displays the unique identifier from the database for the Journal. This field is not editable and is for information only.
  • Last Updated: Displays the date and time the Journal was last updated.  This field is not editable and is for information only.
  • Last User: Displays the User name of the user that last updated the Journal.  This field is not editable and is for information only.

  • Master Number: Displays the unique identifier from the database for the record.  This field is not editable and is for information only.

  • Posted: Displays the date and time the Journal was posted. This field is populated when manual journals or transaction journals are saved as Ready to Post or Posted. This field is not editable and is for information only.
  • Posted By: Displays the username of the user that posted the Journal.  This field is populated when manual journals or transaction journals are saved as Ready to Post or Posted.This field is not editable and is for information only.

The Entering an Accrue & Reverse Journal Entry in foreign currency

When the currency field is changed to other than the company currency, the following fields are enabled after the record is saved:

  • Table: This field defaults to the first exchange rate table configured for the currency in the “Currency Exchanges” list view. When the “Exch. Table” is selected, the “Rate Type” and “Exch. Rate” fields populate based on the currency exchange table record. This field can be changed to Manual, which enables “Rate Type” and “Exch. Rate” fields for manual currency rate entry.
  • Rate Type: This field is only enabled when “Manual” Exch. Table is selected. The field determines how the currency conversion is calculated. The options are “Multiply” and “Divide”. This field is required. When an existing exchange table is selected from the “Exch. Table” field, the rate type defaults from the exchange rate table record and the field is not editable.
  • Rate: This field is only enabled when “Manual” exchange table is selected. The field determines the exchange rate used when the currency conversion is calculated. This field is required in order to calculate the journal entry in the home currency. When an existing exchange table is selected from the “Exch. Table” field, the exchange rate defaults from the exchange rate table record and the field is not editable.

Adding journal lines

By default, a new Accrue & Reverse journal entry record opens with five blank rows for data entry. Complete the data entry by entering the journal lines.

Required line item fields

  • Account Number: Select the GL account that will be used for the debit or credit side of the journal entry. The drop-down menu contains all active GL accounts configured in the system. This field is required.
  • Debit: Enter the debit amount of the line. When a debit amount is entered, the line’s credit field is disabled.
  • Credit: Enter the credit amount of the line. When a credit amount is entered, the line’s debit field is disabled.

If the journal entry is created in a foreign currency, the “Home Debit” and “Home Credit” fields populate based on the currency exchange details selected in the header section of the record. These fields are for informational use only and cannot be edited.

Optional line item fields

  • Project: Select a project associated to the journal entry. The drop-down menu contains all active projects configured in the system. When a journal entry is assigned to a project, the project’s revenue/expense transactions are updated accordingly.
  • Line Comment: This text field allows users to enter additional comments to the journal line.

Step 2: Finalizing the Accrue & Reverse Journal Entry in NorthScope

The journal entry record is editable until it is finalized. To finalize the record, the user will need to change the status to “Ready to Post”. In some companies, posting is a two-step process where journal entries are “Approved” by one person and posted by another.

Approving the Accrue & Reverse Journal Entry

This step is optional and is used for companies that required a two-step process where the person who approves the journal entry cannot be the same person that posts the transaction.

To approve the journal entry open it from the list view, change the status to “Approved”, and click the “Save” icon on the header toolbar. The following validations are performed when the status of the record is updated to “Approved”:

  • Ensures the Date resides within an open fiscal period.
  • Ensures that the journal entry is balanced.

Once the status has been successfully updated to “Approved”, all the editable fields, with the exception of Status, will be disabled.

Finalizing the Accrue & Reverse Journal Entry

When the journal entry is ready to be finalized, the user must open it and change the status to “Ready to Post” and save the record. Setting the journal entry to “Ready to Post” does the following:

  • Validates the same conditions as the approval status and locks down all editable fields including status.
  • Updates the record status to Ready to Post, if the outbound integration setup for Journal is set to immediate or timed.
  • Updates the record status to Posted, if the outbound integration setup for Journal is set to none.
  • Creates a reversing journal entry in the same date that was entered for the reversing date.  This journal contains the originating journal information and is the opposite of the journal details that were entered. The status is displayed as Posted, if the outbound integration setup for Journal is set to none.
  • Sends the journal entry to the Host system, if the outbound integration is set to immediate or timed.

Step 3: Posting the Accrue & Reverse Journal Entry in the host system

If the Company Integration Setup for “Journal” is set to immediate or timed, the journal entry is send to the Host system. The journal entry will appear in the Host system’s Financial module as an entry in the batch titled NS followed by the year, month and day with the following format NS: YY_MM_DD. For example, if the journal entry was integrated on January 1st, 2015, the Batch ID for the journal entry would be NS: 15_01_01.

The Host system displays the NorthScope journal entry ID in the reference field.

Once the journal entries have been reviewed in the Host system, the journal entry batch can be posted in the Host system.

Note: Although this step is required, it does not need to be done for each journal entry. Posting can be done nightly or as needed.

Step 4: Reviewing in NorthScope

Once the journal entry batch has been posted in the Host system, the status of the journal entry record is updated from the “Ready to Post” to “Posted” and the journal entry record is no longer visible in the Journal Entries list view.

Note: The Journal Entries Inquiry displays Accrue & Reverse journal entries with all statuses and posted journal entry records can still be opened from the inquiry.