Journal Entry Special Instructions

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UGLTRI1

Maintain Journal Entry Additional Information

2133

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This screen appears when you use F1=Special on the journal entry detail screen.

This screen is used to set up special instructions for a journal entry batch. For example, if you are setting up a daily template, this screen can be used to give the batch a specific descriptive name. It can also be used to set up reversing and recurring entries.

Once all information has been completed, use Enter to record the changes and return to the previous screen.

·     A batch can be reversing OR recurring, not both. Only use the field(s) necessary for the type of batch you wish to create. For reversing, use only the Reversal Date field. For recurring, use Recurring code, Recurring freq (appears after choosing a recurring code), Next recurring date, and Last day of month. Both types of batches can be named using the Default description field.

Reversing Journal Entries

A reversing journal entry is the exact opposite of the original journal entry—credit and debit amounts are reversed. These types of journal entries are useful when you must make an adjusting type of entry that will later be reversed.

·     For example, use reversing journal entries to handle accrued income on loans that are greater than 90-days delinquent. In these cases, when there are entries on the last day of the month, they can be set up to reverse on the first day of the next month.

Using reversing entries is a four step process:

1.   Create the original J/E batch as usual.

2.   On the maintenance screen, use F1=Special and enter a Reversal date. This date will become the J/E Date for the new reversing batch.

3.   Post the J/E. The system will post the original batch, then create a new batch with the opposite debit and credit data. The reversal date entered in step 2 will be assigned as the J/E date for the new batch.

4.   When ready, post the new batch.

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Recurring Journal Entries

A recurring journal entry is an exact duplicate of the original entry—with a different J/E date. Recurring journal entries are useful for systematic daily or monthly entries. Recurring entries can be set up so that they are created every month, every other month, or any monthly or daily frequency desired, and then are posted manually.

·     One example for a recurring entry might be a transfer into a reserve account over a short-term period.

IMPORTANT: This feature is not intended to handle fixed asset depreciation, investment income, expense accrual, or prepaid expense entries. There are special features available in CU*BASE to handle these types of entries automatically and much more efficiently. SEE ALSO: Subsidiary Processing: Overview and Step by Step Procedures and CU*BASE Investments: Overview and Step-by-Step Procedures.

If you wish to simply re-use a batch of entries already typed, you may find that is it easier and more efficient in most instances just to copy the batch, especially if the batch must be edited before posting.

·     To minimize errors and confusion, we recommend no more than one daily recurring entry batch.

Working with recurring entries is a four step process:

1.   Create the original J/E batch as usual.

2.   On the maintenance screen, use F1=Special and enter recurring information: Recurring code, Recurring freq, Next recurring date, and Last day of month. (See “Field Descriptions” below for more information on completing these fields.)

3.   Post the J/E. The system will post the original batch, then create a new batch with the same information. The next recurring date will be assigned as the J/E date for the new batch.

4.   When ready, post the new batch.

·     Remember—the system will not post the recurring batches automatically. You must manually post the new batch after it has been created by the system.

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Field Descriptions

Field Name

Description

Default description

This field can be used two ways:

1.   If a description is entered here before any journal entry descriptions are entered manually, this description will appear on every debit or credit line item you create. You may still enter a different description on each line as needed.

2.   If a description is entered here after all journal entries have been typed, this description will appear on the first journal entry screen as a description of the batch. Otherwise, the system shows the description from the first sequential item in the batch.

Reversal date

To use the reversing journal entries feature, enter a date here to indicate the date the entries should be reversed. The system will assign this date as the Effective Posting Date for the new reversing batch it will create.

Recurring code

Choose “D” to indicate daily recurring entries. Choose “M” to indicate the entries should recur monthly.

Recurring freq

(Appears after a Recurring code is chosen.) Enter a number to indicate the frequency with which the recurring entries should occur. For daily entries, use a number from 1 to 31. For monthly entries, use a number from 1 to 12.

·     For example, if you wish the system to create this recurring entry once a quarter, use a Recurring code of “M” and a Recurring freq of “03.”

Next recurring date

To use the recurring journal entries feature, enter a date here to indicate the date the entries should recur. The system will assign this date as the Effective Posting Date for the new batch it will create.

Last day of month

If the recurring entry should increment to the last day of the month—regardless of whether the date happens to be the 28th, the 29th, the 30th, or the 31st—choose Yes here.

If No is chosen, the system will increment the date to the same day number each month (i.e., always the 30th).

End of year closing

Only used to indicate end-of-year entries which zero out income and expense accounts.

SEE ALSO: Monthly and Yearly G/L Processing - "Closing the Books"

 

 

 

Link to ID: http://www.cuanswers.com/doc/gold/gold.htm#2133g.htm