General Ledger Accounting Journals

Accolent ERP posts transactions to the General Ledger (GL) through the following Accounting Journals: Sales Journal (SJ), Payment Receipts Journal (PR), PO Receipts/Manual Inventory Adjustments Journal (PO), Accounts Payable Journal (AP), Voucher Adjustments Journal (VA), Cash Disbursements Journal (CD) and the General Journal (GJ). The Accounting Journals are automatically posted to the GL immediately upon completion of the underlying transaction.

Overview

  • The forms of the GL posting transactions are defined for each Accounting Journal.
  • The specific GL Accounts that the Accounting Journals post to are defined on the Warehouse GL Account Defaults – these must be properly set up at the outset.
  • In most cases, the user may override the Warehouse GL Account Defaults with the appropriate permissions.
  • The purpose of each Accounting Journal is briefly summarized below.

Sales Journal

  • The Sales Journal records all sales transactions when revenue recognition criteria have been met.
  • The typical treatment of recording a sale transaction is to debit Accounts Receivable and credit Sales on the income side.
  • On the cost side the posting is to debit Cost of Goods Sold and credit Inventory.

Payment Receipts Journal

  • The Payment Receipts Journal records all transactions to collect payment on an Accounts Receivable item or to take a deposit or prepayment
  • The typical treatment of receipt of payments from a customer is to debit Cash and credit Accounts Receivable
  • For deposits or prepayments that don’t yet have an associated Accounts Receivable entry, the posting is to debit Cash and credit Customer Deposits

PO Receipts/Manual Inventory Adjustments Journal

  • The PO Receipts/Manual Inventory Adjustments Journal is used to receive Purchase Orders and record the goods as Inventory held for sale; the PO Receipts/Manual Inventory Adjustments Journal is also used for any inventory adjustments that may need to be made to record inventory shrinkage or damage.
  • For purchases of inventory, the typical treatment upon PO Receipt is to debit Inventory and credit Unconfirmed Accounts Payable.
  • Upon subsequent receipt and verification of the vendor’s invoice, the typical treatment is to debit Unconfirmed Accounts Payable and credit Accounts Payable.

Accounts Payable Journal

  • The Accounts Payable Journal records all purchases of goods or services that create an Accounts Payable entry.
  • Creation of a voucher for payment of a vendor’s invoice typically debits a period expense account and credits Accounts Payable.

Cash Disbursement Journal

  • The Cash Disbursement Journal records all transactions that relate to outflows of cash.
  • Creation of a check to pay an Accounts Payable item typically debits Accounts Payable and credits Cash.

Voucher Adjustments Journal

  • The Voucher Adjustments Journal records any changes or modifications to Accounts Payable items.
  • Used for adjustments to existing Accounts Payable entries.

General Journal

  • The General Journal is used to enter periodic entries such as booking annual depreciation.
  • There are 3 types of General Journal Adjustments: Standard, Recurring and Auto-Reversing entries.

 

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