Journals

Overview

A journal entry in Accounting is a logging of transaction into accounting journal items. In Surf Accounts, a Journal module allows you to adjust account balances through a single streamlined option. Surf Accounts allows Journal entries for rounding off nominal accounts, opening balance adjustments, advance payments received or advance payments to be made through its Journal. In Surf Accounts the journals is being categorized into 4 types as Journal, Opening Balance, and Accrual and Pre payment. User needs to choose the nominal code from the “Type” drop down menu. .

The default selection will be as “Journal”, for “Accrual” the nominal code will be 881 and “Prepayments” will be as 751.

To enter a journal entries choose Accounts» General Ledger» Journals.

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Add Journal 

Add: To add journals choose the “ADD” option.

Date: Enter the date of the journal in to the Date Field. The system will populate the current date of transaction. If you wish to change the date select the date from the calendar by selecting the calendar option.

Ref. No.: Enter a reference no. for the transaction. If “Reference No” is being selected then it will appear in the “Journal” browse under the Ref. No. column. This is not a mandatory field.

Notes: Enter the notes in the header field. The header notes can be copied into all the lines of the journal entries by choosing the “Enter” (Return) key. In absence of the header notes individual notes will appear in each line. If you wish to over write the notes of the journal row delete the text from the notes column from the journal row and rewrite. This is not a mandatory field.

Type: Choose the type of the journal entry. The “Type” of the entry has been classified into 4 categories. The type of the entry has been classified into “Journal"; “Opening Balance”; “Accrual” and “Pre-payment”. The entry type is very important for the chart of accounts and bank reconciliation. This transition type will also be reflected in the “Journal” browse.

Code: Choose the nominal code of the transaction. This nominal code is very important for the transaction. If the nominal code exists, choose from the lookup button. The nominal code has been classified into different nominal groups for e.g. Sales, Cost of Sales, Administrative Expenses, Other Income, Profit & Loss Suspense, Tangible Fixed Asset, Stock, Asset etc. Each nominal group is consisting of different nominal code. User can choose the nominal code as per the type of the journal. These nominal groups and the nominal codes are system defined.

 If you are entering a Prepayment transaction the nominal code must be 751 and if it is an Accrual transaction the nominal code has to be 881, else an error message will appear and system will not allow to save the transaction.

Description: Description column is an auto populated filed. By choosing the nominal code from the nominal group the description will auto populate into the description field. This column is system defined and user can not over write the description against the nominal code.

Notes: Enter the notes of the transaction in the note split field. If you wish to copy the “Header” notes of the transaction in the notes split press the “Enter” button, it will auto populate. In case if you want to rewrite the notes in the transaction split. This is not a mandatory field.

Debit: Enter the debit amount of the transaction in this column.

Credit: Enter the credit amount of the transaction in this column.

Please note: in a journal line entry, you can add either a debit value or a credit value. For example, if you post a debit balance of 50 in "cost of sales' and Credit value split across two sales account Sales1 and Sales2 with value 20 and 30, the journal will appear as below.

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There should be three lines of entry, one showing the debit value, here 50 for nominal code 110, the next two lines will be 20 for 001, and 30 for 002. Please note if you enter a debit nominal code, system will focus to debit cell by default, and automatically balances a debit balance with a credit balance in the next line, provided the nominal code you select in the next line, is a credit code.

Add: By choosing the “ADD” option you can add the Journal line. By default Journal the browse will give 10 lines to enter the transaction. To enter more transaction choose the “ADD” option in the transaction entry browse.

Delete: To delete the transaction lines choose the delete option. Before you delete the transaction line a confirmation browse will appear.

Copy a Journal:  You can copy a journal by choosing the copy button from the toolbar. This feature has been provided to make a duplicate journal to reduce the effort of the user. If you wish to create a similar kind of journal you can use the feature of “Copy” from the browse. To access “Copy Journal” choose Accounts » General Ledger» Journals » Copy.  The following screen will appear. 

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Before you copy a journal choose the journal you want to copy. After choosing the copy option a pop up will appear on the screen. By choosing “Yes” option from the pop up box system will create a duplicate journal. If you wish to edit the duplicate journal by posting more transaction choose the nominal code and create transaction. You can edit the existing Header notes, Line notes, nominal code. If the Bank Reconciliation is being performed for the business the copy journal feature will be disable as the transaction is locked for the period.  System will not allow the user to change or edit the transaction type (Journal, Pre payment, Accrual and Opening Balance). 

Retrieving the Unsaved Journals:

Surf Accounts provides a facility to retrieve the unsaved journals to make sure that your entries does not get lost due to any kind of inconvenience (for e.g. improper shut down due to system failure or logging off from Surf Accounts or moving into different browse without saving the journal entry).

You can move to a different browse from the journal browse without saving the journal if required. But the transaction will be in Surf Accounts so that you do not have to reenter the transaction even if your system shuts down. The transaction will be in an unsaved status and it will not appear in your “Chart of Accounts”.  You can modify the unsaved (Temporary) journals if you wish to. To save the “Unsaved (Temporary)” journal, just open the journal save click on “Save”.

 To differentiate the saved and unsaved journal Surf Accounts provides a visual change in the Journal browse. All the unsaved transaction will be in marked “Red colour”. This feature has been provided by Surf Accounts to identify the unsaved transaction. Once you save the transaction the red mark will disappear and will change into black.    

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