Journal Entry

Journal entries are financial postings that are either created automatically by the system when you record a transaction, or it can be manually created by a user. Journal entries are the reason why, the amount which you have traded or purchased are posted to its subsequent G/L Account. In this blog we are going to focus mainly on manual postings. For a better understanding let us look at all the forms the help you to post a manual journal entry.

 

Journal Entry, Journal Vouchers, Recurring Postings are the three forms that enable the user to post a manual journal entry.

1.      Journal Entry window’s function is to create entries for accounts and business partners. This window can also be used to display previous journal entries that were either manually or automatically posted.

2.      A journal voucher is a draft stage document that creates no values in the general ledger. At this stage, the journal voucher can be checked and completed, and then recorded. The input template is identical to that of the Journal Entry window.

3.      Recurring Postings window assists the user to record set of journal entries that recur monthly or weekly. (Example: recurring journal entries can be payroll orders or standing instructions that are paid to the bank every month.)

 

We’ve understood what Journal entries are and what are the windows in SAP Business One that help you to post a manual journal entry. Now let us look at some scenarios where manual journal entries necessary. Imagine your company trades wooden doors and that you have traded 10 pieces of wooden doors to your customer for $1000, later you find out that there was an internal costing error and that the actual cost of 10 doors were $1100. In this case, as a correction entry, you add a manual journal entry debiting the customer to cover you actual selling price of those 10 wooden doors.