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Journal Entries ​

Journal entries are the foundation of double-entry accounting, recording all financial transactions in your general ledger. This guide covers comprehensive journal entry management in Angage ERP.

Understanding Journal Entries ​

Double-Entry Principles ​

Every transaction must:

  • Have at least one debit and one credit
  • Balance (total debits = total credits)
  • Include proper documentation
  • Follow accounting standards

Entry Types ​

Manual Journals ​

  • Adjustments
  • Accruals
  • Corrections
  • Allocations
  • Provisions

System-Generated ​

  • Sales invoices
  • Purchase bills
  • Payroll
  • Depreciation
  • Bank transactions

Recurring Entries ​

  • Rent
  • Insurance
  • Subscriptions
  • Allocations
  • Standard accruals

Creating Journal Entries ​

Manual Entry Process ​

  1. Navigate to Finance → Journal Entries
  2. Click New Entry
  3. Enter header information:
    • Date: Transaction date
    • Reference: Document number
    • Description: Clear explanation
    • Journal Type: General/Sales/Purchase

Adding Line Items ​

Debit Entry ​

Account: 5100 - Rent Expense
Debit: $5,000
Cost Center: Operations
Description: Monthly office rent

Credit Entry ​

Account: 2100 - Accounts Payable
Credit: $5,000
Vendor: ABC Properties
Description: Monthly office rent

How-To Guides ​

How to Create Standard Journal Entries ​

Basic Entry ​

  1. Select journal type
  2. Enter transaction date
  3. Add debit lines:
    • Select GL account
    • Enter amount
    • Add dimensions
    • Include description
  4. Add credit lines
  5. Verify balance
  6. Save and post

Quick Balance Check

The system shows running debit/credit totals. The difference must be zero before posting.

How to Handle Multi-Currency Entries ​

Foreign Currency Transaction ​

  1. Select currency for entry
  2. Enter foreign amounts
  3. System calculates:
    • Base currency equivalent
    • Exchange rate used
    • Conversion date
  4. Example:
    Dr: Purchases (EUR) €1,000
Cr: EUR Bank €1,000
(USD equivalent: $1,150 @ 1.15)

Exchange Differences ​

For payment at different rate:

Original Invoice: €1,000 @ 1.15 = $1,150
Payment: €1,000 @ 1.18 = $1,180
Difference: $30 loss

Dr: Accounts Payable $1,150
Dr: Exchange Loss $30
Cr: Bank $1,180

How to Create Recurring Entries ​

Setup Recurring Template ​

  1. Go to Recurring Entries
  2. Click New Template
  3. Define recurrence:
    • Frequency: Monthly
    • Start Date: 1st of month
    • End Date: After 12 occurrences
    • Auto-Post: Yes

Template Details ​

Add standard lines:

Dr: Insurance Expense $1,000
Cr: Prepaid Insurance $1,000

Execution Options ​

  • Auto-post on schedule
  • Email reminder
  • Manual review required
  • Variation allowed

How to Make Adjusting Entries ​

Period-End Adjustments ​

Accrued Expenses Record expenses incurred but not billed:

Dr: Utility Expense $500
Cr: Accrued Expenses $500

Prepaid Expenses Recognize portion used:

Dr: Insurance Expense $1,000
Cr: Prepaid Insurance $1,000

Depreciation Monthly depreciation:

Dr: Depreciation Expense $2,500
Cr: Accumulated Depreciation $2,500

How to Reverse Entries ​

Automatic Reversal ​

  1. Find original entry
  2. Click Reverse Entry
  3. Select reversal date
  4. Choose method:
    • Full Reversal: Exact opposite
    • Partial: Select lines
    • Modified: Change amounts
  5. System creates reversal

Manual Reversal ​

Create opposite entry:

Original:
Dr: Expense $1,000
Cr: Accrual $1,000

Reversal:
Dr: Accrual $1,000
Cr: Expense $1,000

How to Allocate Costs ​

Direct Allocation ​

Distribute costs to cost centers:

Total Rent: $10,000
- Sales (40%): $4,000
- Admin (35%): $3,500
- Operations (25%): $2,500

Entry Creation ​

Dr: Rent - Sales $4,000
Dr: Rent - Admin $3,500
Dr: Rent - Operations $2,500
Cr: Accounts Payable $10,000

How to Import Journal Entries ​

Bulk Import Process ​

  1. Download template
  2. Fill in data:
    • Date
    • Account codes
    • Amounts
    • Dimensions
    • Descriptions
  3. Validate data
  4. Upload file
  5. Review preview
  6. Process import

Import Validation ​

System checks:

  • Account validity
  • Debit/credit balance
  • Required fields
  • Dimension rules
  • Period status

Advanced Features ​

Approval Workflows ​

Setting Up Approvals ​

Configure based on:

  • Amount thresholds
  • Account types
  • Journal types
  • User levels

Approval Process ​

  1. Entry saved as draft
  2. Submitted for approval
  3. Reviewer notified
  4. Review and approve/reject
  5. Post if approved

Journal Entry Templates ​

Creating Templates ​

Save common entries:

  • Month-end accruals
  • Standard allocations
  • Recurring adjustments
  • Complex calculations

Using Templates ​

  1. Select template
  2. Update variable data:
    • Dates
    • Amounts
    • Descriptions
  3. Generate entry
  4. Review and post

Automated Entries ​

Rule-Based Generation ​

Configure automatic entries:

  • Bank fees
  • Interest calculations
  • Currency revaluation
  • Intercompany charges

Scheduling ​

Set up timing:

  • Daily processing
  • Month-end runs
  • Triggered events
  • Batch processing

Controls & Compliance ​

Entry Validation ​

System Controls ​

  • Balanced entries only
  • Valid account codes
  • Open period check
  • Dimension requirements
  • Approval limits

Audit Features ​

  • User tracking
  • Timestamp recording
  • Change history
  • Supporting documents
  • Review notes

Documentation Requirements ​

Supporting Documents ​

Attach evidence:

  • Invoices
  • Contracts
  • Calculations
  • Approvals
  • Correspondence

Document Management ​

  • Mandatory attachments
  • Document types
  • Retention rules
  • Access control

Reporting & Analysis ​

Journal Reports ​

Standard Reports ​

  • Journal entry listing
  • By period/date range
  • By journal type
  • By user
  • By account

Analysis Tools ​

  • Entry patterns
  • User activity
  • Error tracking
  • Processing time
  • Volume trends

Audit Reports ​

Track for compliance:

  • All manual entries
  • Modifications
  • Reversals
  • Unusual amounts
  • After-hours posting

Best Practices ​

Entry Standards ​

  • Clear descriptions
  • Proper documentation
  • Timely recording
  • Accurate coding
  • Complete dimensions

Period Management ​

  • Daily postings
  • Weekly reviews
  • Monthly reconciliation
  • Quarterly analysis
  • Year-end procedures

Quality Control ​

  • Peer review
  • Supervisor approval
  • Regular audits
  • Error correction
  • Training updates

Configuration ​

Journal Settings ​

Navigate to Settings → Finance → Journals:

  • Journal Types: Define categories
  • Number Sequences: Auto-numbering
  • Approval Rules: Workflow setup
  • Posting Controls: Restrictions
  • Document Requirements: Mandatory files

Integration Configuration ​

  • Sub-ledger links
  • Bank interfaces
  • Payroll systems
  • External sources
  • API connections

Troubleshooting ​

Common Issues ​

Cannot post entry

  • Check balance
  • Verify period open
  • Review account status
  • Check permissions

Approval pending

  • Review workflow
  • Check approver availability
  • Verify thresholds
  • Monitor notifications

Import failures

  • Validate format
  • Check account codes
  • Review amounts
  • Verify requirements

Next Steps

Learn about Cash Flow Management for liquidity planning and forecasting.

Angage ERP Documentation

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