About the GL Auto Journal Entry Setup Form
Use the GL Auto Journal Entry Setup form to set up recurring journal entries that may be run monthly in GL Auto Journal Entry.
Recurring entries may be set up to post fixed amounts, to post amounts calculated based on percentage or ratios of other amounts, or to post calculated totals. Multiple sequences may be used to calculate interim totals to be used in later sequences as the basis. Journal entries may be based on monthly or year-to-date totals and balances.
You can use auto journal entries to post depreciation, expense monthly prepaids, or automatically allocate overhead expenses.
To expense prepaids monthly, calculate the monthly expense and set up the journal entry to debit the expense account and credit the prepaid account for a specified amount and length of time.
Set up entries to automatically allocate overhead expenses based on a calculation of other accounts, such as sales by region.
Entry and Sequence Numbers
An entry number should be thought of as a specific journal entry made up of balanced debit and credit transactions.
The sequence is the order in which the computer will process these items. Interim totals may be accumulated and the sequence may be significant in that totals must be accumulated before allocations or journal postings are made.
Allocation types allow you to identify how to allocate the transaction.
You may allocate by percent, ratio, or a fixed amount.
Percent - Use this option to post a percentage of an account or total.
Ratio - Use this option to post a percentage of an account or total, based on the ratio between two accounts and/or totals.
Fixed Amount - Use this option to post a fixed amount.
You can use these allocation types either singly or combined to accommodate both simple and intricate entries. You can base the entry on fixed amounts, account balances, and/or previous totals in the entry.
Using Total #s
Total #s are uniquely identified by numbers from 1 to 255 and may be referenced by more than one entry/sequence.
You can set up various total #s to use within a posting period.
To accumulate amounts to a total #, define the Allocation Type and value (percent, ratio, or fixed amount), the accumulation Source (GL Account), and the Post To Total number (1-255). Be aware that you can use the same Total # for all Entry/Sequences until you validate and post the batch, so if you do not wish to accumulate totals in this manner, use a numbering system for Total #s that keeps them separate. The total number can then be referenced in later sequences.
Using this feature, you can create complex sequences to calculate journal entries if you desire.
Intercompany Journal Entries
If you allow posting intercompany journal entries (flag in GL Company Parameters), you can set up recurring cross-company transactions here.
You will need to set up one entry designating the posting company as the ‘to’ GL Co#, and then set up the offsetting entry for the ‘post to’ company.
The journal specified for the intercompany entries must be the same in all referenced companies. Although you can post to any journal, a suggestion would be to set up a separate intercompany journal in each company for which you will be posting intercompany journal entries. The reference code must also be the same for the intercompany journal entries.
Do not enter offsetting intercompany payables and receivables entries; the posting program (GL Auto Journal Entry) will make these entries automatically when you post the batch. In addition, all intercompany entries must balance to zero, regardless of how you have set the Allow Unbalanced Entries option in GL Company Parameters.
Intercompany journal entries will be assigned a source of GL JrnlXCo in GLDT (Transaction Detail). Once posted, you cannot edit or delete these entries. If corrections are needed, you will need to make additional compensating entries.