Automatic Journal Entry

The Auto Journal Entry feature allows you to set up recurring journal entries to be run automatically each month.

Entries can be set up as fixed amounts or calculated amounts based on percentages or ratios. They can be set up to be posted indefinitely or through a certain month. Once you have set up your auto journal entries, posting will be done for you by running GL Auto Journal Entry.

There are three types of allocations for auto journal entries:

  • Percent - Use to post a fixed percentage of an account or total.

  • Ratio - Use to post a percentage of an account or total, based on the ratio between two accounts and/or totals.

  • Fixed Amount - Use 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.

Possible Uses for This Feature

Auto journal entries can be used to expense prepaids monthly. Just set up a recurring entry to debit the expense account and credit the prepaid account for a set amount and a specified length of time.

You can also use them to auto allocate overhead expenses based on:

  • a percentage being applied to each profit center or,

  • a calculation of other accounts, such as sales or profits by region.

How to Implement This Feature

To use this feature, set up the recurring journal entries in the GL Auto Journal Entries maintenance program. Then each month, run the GL Auto Journal Entries program to post the entries.