9.6. Creditor Journal Entry
This option allows you to manipulate creditor account balances. The purpose of journal entries is primarily to clear up previous errors, e.g. an invoice or payment posted twice, or to post opening balances.
When this option is selected you will need to enter the Creditor Code you want to post a journal to. You can do this by either typing it in or by pressing [F2] to pop-up a list of creditors. Once you have entered a creditors code, their Name, Address, Monthly balances and last payment amount will be displayed.
Note : If you don't wish to proceed with the journal press [Esc].
[F3] Allows you to view the creditor's transactions.
Descriptions of all the fields on this screen follows :
Type This is a multi-choice field that lets Equity know whether you wish to increase or decrease the creditor balance. A Debit will increase the balance (i.e. the creditor will be owed more) and a credit will decrease the balance (i.e. the creditor will be owed less). Use the arrow keys to select which type you are posting.
Date The date defaults to the date entered when you started up Equity. This can be overwritten by typing in a new date.
Amount This is the amount of adjustment being made.
Aging All journals must be aged. For example, if a journal pertains to a transaction in the previous month then you would use the arrow key to select `30'.
Reference You can enter up to six numbers or letters here if you wish. e.g. a cheque number.
Reason for Journal All journals are entered for a reason. Type in the reason so in the future you will be able to remember why this journal was posted. If you have trouble coming up with a reason maybe you should think about why you are entering this journal BEFORE you post it.
Default G/L accounts When you post a Creditor Journal Equity posts amounts automatically to the following default General Ledger accounts.
Creditor Control
Creditor's default G/L account set in their record.
If you don't use the General Ledger just accept the defaults. If you do use the General Ledger you may need to change the bottom account. An example follows.
Example A payment to a creditor was posted twice. You will need to post a journal debit for the payment amount. The default accounts will be Creditor Control and Cash at Bank since the payment would have decreased the bank balance.
A message will be displayed at the bottom of the screen - "Press Enter to Accept". If you wish to change either the default G/L account or any other fields press [Esc] and enter the change. If you wish to totally abandon the journal press [Ctrl][Esc] or [Alt][F4] if running under Microsoft Windows.
Assuming you have pressed [Enter], posting will be immediate and automatic and cannot be unposted.
9.6.1. Entering Opening Balances
Creditor opening balances are entered using creditor journals. Opening balances are all amounts that you owe your creditors from when you start using Equity . All balances will need to be entered in their correct age (i.e. Current, 30, 60, 90).
To post opening balances all your creditor details must be in the system using the Maintain Creditors Menu option. Have a list detailing their aged balances in front of you and simply follow the steps outlined below.
Enter the first creditor's code.
Accept the default date.
Starting with the oldest balance, enter a DEBIT if you owe them money or a CREDIT if your account is in credit.
Enter the oldest balance amount.
Select the appropriate age for this balance.
Enter O/BAL as the reference.
You don't need to enter a reason as the reference is self-explanatory.
Press [Esc] if you wish to change the default G/L code.
Press [Enter] to save the journal.
If the creditor has another age balance repeat the above procedure.
When you have entered all the first creditors balances go on to the next.
When you have finished entering all opening journals, print out a Creditor Aged Trial Balance from the Creditor Reports Menu. Make sure the balances on the report correlate to your list. If they don't start checking individual balances for errors.
Note : If you are running Open Item creditors you can elect to post each outstanding transaction individually. If you do this change the journal date to correspond to the transaction date.