12.11. GL Journals

Unlike other similar applications, SocrateCloud automatically generates and posts the accounting records for each processed document. Therefore, you do not need to enter General Ledger journals for stock movements (e.g. Internal Use Inventory) or product sales. Only certain instances require you to manually enter journals such as wage payments. In these situations you need to enter the corresponding journals manually or by using the import functionality.

Simple GL Journals

The GL Journal window, located in the Performance Analysis -> Accounting Rules menu can used to operate GL journals. The following fields are available:

• Accounting Schema, Transfer Type, GL Category - parameters used for posting the document;

• Document No, Document Type, Document Date - the GL journal is a document an has document specific properties;

• Account Date - the date used for the resulting accounting transactions;

• Period - the corresponding period from the accounting calendar. In most cases the period coincides with the document date;

• Accounting Schema Currency - currency used for the resulting accounting transactions;

• Currency - currency used for the amounts on the document;

• Tax Declaration - is checked if the journal is a tax adjustment:

  • Sales Transaction - indicates whether the tax is adjusted for a sales or purchase transaction;

  • Business Partner, Address - corresponding business partner;

Status section:

• Control Amount - if not 0, in order to process the GL document: Total Credit = Total Debit = Control Amount;

• Approved - indicates whether the document was or was not approved. Details in Workflows;

• Total Debit, Total Credit, etc. - total amount for debit an respectively , credit on the journal lines, in both document and accounting schema currencies;

• Document Status - indicates the current document status;

  • Document Action button:

    • "Complete" - select to complete the journal. Only completed journals can generate accounting transactions. Completed journals can no longer be edited or deleted;

  • Once the journal has been completed, you can change its status by using one of the following Document Actions:

    • • "Close" -> no other process can affect the journal;

      • "Reverse - Correct" -> a new journal will be created with the same lines (debit/credit accounts) and the same amounts with reversed sign. The Document Date and the Account Date will not be changed;

      • "Reverse - Accrual" -> a new journal (or multiple journals) will be created with the same accounting combinations, but with debit and credit accounts interchanged. The amounts are not modified, a The Document Date and the Account Date will not be changed (not recommended because it affects the account debit and credit movement amounts);

      • "Void" -> voids the journal by setting the debit and credit amounts to 0 and deleting the corresponding accounting transactions;

  • Posted/ Not Posted button - is used to generate or view the corresponding accounting transactions;

    • Note: The Posted/Not Posted button will only be visible if you have selected the Show Accounting Tabs in User Preferences.

  • Copy Details button - is used to copy the debit/credit transaction from another GL Journal;

The Line tab is used to enter the GL Journal lines through which represent debit and credit transactions. The following fields are available:

• Line No, Description

• Transferred (system maintained) - indicates that the journal line has been successfully posted;

Reference section:

• Account Alias, Combination

• Base Tax Amount:

  • "checked" - for the lines that represent the base amount;

  • "not checked" - for the line that represent the tax amount;

• Tax - the corresponding VAT rate used when displaying the journal line in the VAT Journal;

Amounts section:

• Source Debit, Source Credit - debit or credit amount, in the document currency;

• Accounted Debit, Accounted Credit - debit or credit amount in the accounting schema currency;

Quantities section:

• UM, Quantity - if applicable, the corresponding quantity can be specified for the accounting element combination;

  • • Note: SocrateCloud registers both credit/debit amounts for operational transactional and their corresponding quantity. As a result, through the accounting reports available, you can obtain both amounts and quantities.

Note: For the romanian report "Fisa Cont Sintetic" to work it is mandatory that each journal contains only 2 lines, one for the Debit account and one for the Credit account! In order to restrict departures from this rule, you can select, in the Document Type window, the Two equality limitation checkbox for the GL Journal document type.

Batch GL Journals

The GL Journal Batch window is used to enter batch GL journals, through which multiple journals are grouped. The following fields are available:

• Document No, Document Type

• Transfer Type, GL Category, Document Date, Account Date, Period, Currency - will be applied as default values to the journals entered in the Journal tab, but can be edited afterwards;

Status section:

• Control Amount - if not 0, in order to process the GL document: Total Credit = Total Debit = Control Amount;

• Approved - indicates whether he document was approved or not. Details in Workflows;

• Total Debit, Total Credit - total amount for the debit amount and respectively credit amount, totaled for the GL journals in the Journal tab.

• Document Status - indicates the current document status;

• Document Action button - the action selected here will be applied to all the GL Journals included in the batch;

• Copy Details button

The Journal tab is used to enter the corresponding GL journals. The available fields are the same as the GL Journal window which is described above.

GL Document

The GL Document window located in Performance Management can be used to enter GL Journals and eliminates the possibility to enter accounting transactions without correspondence between the debit and credit accounts. The following fields are available:

• • Accounting Schema - the schema for which the GL document will be posted;

• Acct Schema Currency - the currency used for the resulting accounting transactions, when posting the GL Document (regardless of the GL Document Currency);

• Document No, Description, Document Type - the GL document has document specific properties;

• Posting Type - determines the ledger that will be used to register the accounting transactions. The posting type used for accounting transactions resulting from operational documents is "Actual";

• Gl Category - document grouping category used for reporting;

• Document Date - date used to register the GL document;

• Account Date - date used to register the accounting transactions that will result when posting the GL document;

• Period - corresponding accounting calendar period for the GL document;

• Currency - currency used for the amounts on the GL document;

• Tax Declaration - is checked if the journal is a tax adjustment:

  • Sales Transaction - indicates whether the tax is adjusted for a sales or purchase transaction;

  • Business Partner, Address - corresponding business partner;

• Control Amount - if not 0, in order to process the GL document: Total Credit = Total Debit = Control Amount;

• Approved - indicates whether the document was or was not approved. Details in Workflows;

• Total Debit, Total Credit, etc. - total amount for debit an respectively , credit on the journal lines, in both document and accounting schema currencies;

• Document Status - indicates the current document status;

  • Document Action button:

    • "Complete" - select to complete the journal. Only completed journals can generate accounting transactions. Completed journals can no longer be edited or deleted;

  • Once the journal has been completed, you can change its status by using one of the following Document Actions:

    • • "Close" -> no other process can affect the journal;

      • "Reverse - Correct" -> a new journal will be created with the same lines (debit/credit accounts) and the same amounts with reversed sign. The Document Date and the Account Date will not be changed;

      • "Reverse - Accrual" -> a new journal (or multiple journals) will be created with the same accounting combinations, but with debit and credit accounts interchanged. The amounts are not modified, and the current date will be used for Document Date and Account Date;

  • Posted/ Not Posted button - is used to generate or view the corresponding accounting transactions;

    • Note: The Posted/Not Posted button will only be visible if you have selected the Show Accounting Tabs in User Preferences.

The Document tab is used to enter accounting transactions for debit and credit accounts in correspondence. The following fields are available:

• Line No, Description

Reference section - contains two columns, one is used to define the debit account and the other the credit account:

• Base Tax Amount:

  • "checked" - for the lines that represent the base amount;

  • "not checked" - for the line that represent the tax amount;

• Tax - the corresponding VAT rate used when displaying the journal line in the VAT Journal;

• Debit Account Alias, Credit Account Alias - to define the accounts used, the corresponding aliases can be selected;

• Debit Combination, Credit Combination - the corresponding accounting accounting elements combination;

• Debit Account, Credit Account - account element used for credit and respectively, debit;

• Debit and Credit accounting schema elements - for both credit and debit accounts additional account elements can be specified: Campaign, Project, Employee, etc.

Amounts section:

• • Source Amount - the GL document amount, for both credit and debit;

• Currency - the currency used for the amount on the GL document;

• UOM, Quantity - if applicable, the corresponding quantity can be specified for the accounting element combination;

The Line tab displays, for each accounting transaction with credit-debit correspondence, the credit and debit journal lines as they would appear if defined using the GL Journal window, Lines tab.

Examples

VAT Journals

The GL Journal window can be used to manually enter GL Journals that need to be highlighted in the VAT Journals.

1.1 For GL Journals that need to be highlighted in the VAT Journals, you need to enter/select the following information in the GL Journal window:

• check the Tax Declaration checkbox;

• if applicable, check the Sales Transaction checkbox (if the GL Journal needs to appear on the Sales VAT Journal);

• select the Business Partner and the Partner Location;

1.2 Enter the lines corresponding to the GL Journal in the Line tab.

• For the line that represents the VAT basis, you need to:

  • check the Taxable Amount checkbox;

  • select the corresponding Tax (i.e. VAT rate).

• For the line that represents the VAT amount, you need to:

  • select the corresponding Tax (i.e. VAT rate).

Note: Source Debit needs to be equal to Source Credit.

(e.g. Debit- 120 lei, Credit- 120 lei

-or Debit- 120 lei, Credit- 100 lei and Credit- 20 lei,

-or Debit- 100 lei and Debit- 20 lei, Credit- 120 lei)

2. Complete the GL Journal in the GL Journal window.

• After entering all the lines, go back to the GL Journal window to verify that Total Debit is equal to Total Credit.

• Complete the journal, by pressing the Complete button. As such, the document status will also be changed from Drafted to Completed. Post the document, using the Post button.

GL Category

The GL Categories window can be used to register compounded GL Journals, (e.g. Salaries) that would subsequently be used as templates.

1.1 Enter/select the following information regarding the GL Category in the GL Journal Batch window:

1.2 Enter the lines corresponding to the GL Journals in the Journal tab.

1.3 Enter the lines corresponding to a certain GL Journal in the Line tab.

1.3.1 Enter the Debit Account;

1.3.2 Enter the Credit Account.

Note: Source Debit needs to be equal to Source Credit.

(e.g. Debit- 100 lei, Credit- 100 lei

-or Debit- 100 lei, Credit- 80 lei and Credit- 20 lei,

-or Debit- 80 lei and Debit- 20 lei, Credit- 100 lei)

Note: Similarly, enter all the GL Journals corresponding to a GL Category.

e.g. Journal tab - Description- Register Employee contributions.

Line tab -Line 10 - Debit 421 , Source Debit 15000

Line 20 - Credit 4312 , Source Credit 10000,

Line 30 - Credit 4314 - Source Credit 5000.

2. Complete the compounded GL Journal, in the GL Journal Batch window.

After entering all the lines, go back to the GL Journal (Batch) window to verify that Total Debit is equal to Total Credit.

Complete the GL Category by pressing the Complete button. As such, the document status will also be changed from Drafted to Completed.

In order for the GL Journal to immediately be reflected in the accounting reports, go to the Journal tab and press the Not Posted button. A new window will be displayed, where you will have to press the OK button to have the journal posted.

If you want to view the accounting record, press the Posted button. This way, all the journals corresponding to the GL Category will be posted.

Note: The journals corresponding to a GL Category can only be posted after the GL Category (Batch) has been completed.

For the recurrent GL Journals (e.g. Monthly Wages), the GL Category will be used as a template as such: click on the Copy Details button on the GL Journal Batch window and select the number of the GL Category that will be used as template. Thus, all the lines (simple GL Journals) will be copied to the new journal and these can subsequently be modified or erased.

Starting with version 2.6, the GL Journals can be printed by pressing the Print button on the main toolbar of the GL Journal Batch window.