5.6. Journal Entry
This option allows you to manipulate the debtors 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 Debtor 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 debtors. Once you have entered a debtors 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 debtor'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 debtor balance. A Debit will increase the balance (i.e. the debtor will owe you more) and a credit will decrease the balance (i.e. the debtor will owe you 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. If this journal pertains to a transaction in the previous month then use the arrow key to enter `30' etc. Press the [F3] key to check.
Reference
You can enter up to six numbers or letters here if you wish. e.g. a cheque number.
Default G/L accounts
When you post a debtor journal Equity posts amounts automatically to the following default General Ledger accounts.
Debtor Control Debtor Adjustments
If you don't use the General Ledger just accept the defaults. If you do use the General Ledger it is likely you will need to change these default accounts. Examples follow.
Example 1.
A debtor payment was posted twice. You will need to post a journal debit for the payment amount. The default accounts will be Debtor Control and Cash at Bank since the payment would have increased the bank balance.
Example 2.
Sales tax was not charged on an invoice that should have included sales tax. You will need to post a journal debit for the tax amount. The default accounts will be Debtor Control and Sales Tax Payable. Alternately raise a Credit Note for the incorrect Invoice and then re-Invoice the goods with Tax.
Note : You cannot issue a separate invoice for sales tax only.
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 accounts or any other fields press [Esc] and enter the change. If you wish to totally abandon the journal press [Ctrl][Esc]. Assuming you have pressed [Enter], posting will be immediate and automatic and cannot be un-posted.
If you are posting a Journal Credit to an Open Item debtor a screen will be displayed that allows you to allocate the Journal Credit to an invoice. For more information on allocating transactions refer to Cash Allocation in this section.
5.6.1. Entering Opening Balances
Debtor opening balances are entered using debtor journals. Opening balances are all amounts that are owed to you from your debtors 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 the debtor details must be in the system. Have a list detailing their aged balances in front of you and simply follow the steps outlined below.
Enter the first debtor's code.
Accept the default date.
Starting with the oldest balance, enter a DEBIT if they owe you money or a CREDIT if their 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] to change the default code from Debtor Adjustment to 4000 - Credit Sales.
Press [Enter] to save the journal.
If the debtor has another age balance repeat the above procedure.
When you have entered all the first debtors balances go on to the next.
When you have finished entering all opening journals print out an Aged Trial Balance. 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 debtors you can elect to post each outstanding transaction individually. If you do this change the journal date to correspond to the transaction date and follow the above procedure for each outstanding transaction.