Process journal entries
Journals are posted to adjust account balances.
In the Process Journal Entries screen, you will first enter the account that will increase in value. Enter the date and reference for the transaction and then enter an explanation for the journal. If the journal requires a corresponding decreasing account, you will enter the value in the by Affecting Acc column. You can select to include VAT on the journal if necessary.
- Select the Accountants Area…Journal Entries option.
- The following screen will be displayed:
You can select to show previous journal entries that have been made. This can assist you in processing journals because you can see how previous adjustments or transactions were done.
In the grid, you will enter the transaction’s details. On the left side, you will process one side of the transaction. On the right side, you will select the other account that will be affected, if required. On the right, the system will automatically fill in the amount for you. Each of the fields in the lines are explained below.
The following table explains the grid columns:
|Date||Enter the date on which you are processing the transaction.|
|Effect||In this field, you will select whether you want to enter a value to debit or credit the balance of the account.|
|Account||Here you will select the account that you need to adjust.|
|Reference||In this field, you will enter a reference for the transaction.|
|Description||In this field you will enter a description for the adjustment. Remember to enter a description that is meaningful when it appears on reports.|
|VAT Type||You are able to select whether the transaction has VAT on it or not.|
|Amount||Enter the VAT exclusive value of the adjustment here.|
|VAT||Enter the VAT amount only in this field.|
|Incl. VAT||Here the system will display the VAT inclusive amount. This is also the amount that will be added or taken away from the balancing account.|
|By Affecting Account||The “other” account affected when you post a transaction. The principle of accounting dictates that every debit should have a credit. In other words – every transaction affects at least two accounts. A main account and a contra account. The contra account in Sage One is referred to as the by affecting account. For example: If you do a journal entry for depreciation for your Motor Vehicles. You will affect the depreciation account in the profit and loss – however, you need to affect a contra account as well. The By affecting account in this example would be The Motor Vehicles account which is an asset. In the example of a Customer Adjustment you would affect the Customer (or Accounts Receivable) but the by affecting account would be the other ledger account affected by the adjustment for example Interest Received.|
User the or buttons to add or delete lines in the journal processing grid.
If you delete a transaction while you are processing or when you are viewing previous transactions, Sage One Accounting will not remove the deleted line immediately. The deleted lines will be displayed as deleted and an undo button will be available to un-delete the line. Once you click on the Process button, the transactions displayed as deleted will be deleted.