Thursday, 29 March 2007

Recurring Journals

Recurring journals are very useful in recording periodic transactions that have no or very few changes. To open Recurring Journals window, click on FINANCIAL MANAGEMENT --> GENERAL LEDGER --> PERIODIC ACTIVITIES --> RECURRING JOURNAL.

Data in the Recurring Journals are actually saved in the Gen. Journal Line table. Gen. Journal Line is the table used to keep General Journal entries.

There are 6 types of recurring methods:
  1. Fixed - amount on journal will remain after posting. Used if the amount is the same for every period.
  2. Variable - amount on journal will be deleted after posting. Used if the amount is not the same for every period.
  3. Balance - amount on the journal line will be allocated amount accouns specified in te Gen. Jnl. Allocation table.
  4. Reversing Fixed - same as number (1) plus a balancing entry posted with the following day as the posting date.
  5. Reversing Variable - same as number (2) plus a balancing entry posted with the following day as the posting date.
  6. Reversing Balance - same as number (3) plus a balancing entry posted with the following day as the posting date.
Methods (4), (5) and (6) are used to post monthly accruals that should be reversed at the following month. It must be posted at the last day of the month and the balancing entry to be posted at the first day of the following month.

The formula entered in the Recurring Frequency field is used to calculate the next posting date after the journal line has been posted. For example, if you enter 1M as the formula in the Recurring Frequency field and post the recurring journal at 30th Mar 2007, the new posting date after the posting will be 30th Apr 2007. Use 1D + 1M - 1D if you want to post at the end of every month. This is useful for methods (4), (5) and (6) above.

Please note that posting date in recurring journals cannot be later than work date.

Expiration Date, as its name suggested, is the last date that an entry will be repeated.

One special feature in Recurring Journals is that Recurring Journals do not have balancing account to offset the amounts. To offset the amounts, you hae 2 options here:
  1. Create a balancing line.
  2. Use LINE --> ALLOCATIONS to allocate the amount to other accounts.

1 comment:

Rajesh said...

we are in need to have recurring journal entry documentation, presenetation or vedioes.