Use the Journal Entry subsystem to manually enter and correct any entries to the GL journal file. This includes both manual entries and system entries that have been posted automatically from other modules.
The Journal Entry program allows entries and corrections to be made in the current or next GL period. Any journal entries to the current or next fiscal period not entered through this program must post automatically from other modules or from the recurring/reversing entry subsystem. Once a journal entry is made, it appears on the next Journal Print or Trial Balance/Detail Ledger printed for that period. If the Allow Journal Correction flag is selected or set to Y in the GL Static Control F/M, then journal entries may be corrected by entering the journal entry number.
The Prior Period Journal Entry program allows entries to any closed period within the last 10 periods, (assuming a 12 period year) (# of periods as set in the company control record) or two periods less than the number of periods per year.
You cannot end journal entry processing or prior year journal entry processing until debits and credits balance. Therefore, out-of-balance entries are not permitted.
Using Journal Print, print the prior period journals you enter before updating the Prior Period Update. The Journal Print program entries are the audit trail for the Prior Period Update.
After printing, run the Prior Period Update program to update the General Ledger account ending balances. The program updates all accounts from the prior period through the current GL period from the entries that were made manually in the Prior Period Journal Entry program. The update program updates the ending balances only for the account numbers entered through this program. The ending balances are updated forward through the current period, from the prior period where the entry was made. Any entries affecting an expense or revenue type GL account also cause the retained earnings ending balance to be modified. The system runs the update process only for the prior period you enter. Updating involves adjusting the affected account ending balances according to the transaction amounts in the journal file. The periods affected are: the selected period, all closed periods between the selected and current periods, and the current period. The journal records for this period are then removed (updated to journal history file if journal history is stored). Since the only hard copy of the journal entries involved in the update is a journal print, the update does not run until you respond affirmatively to the question: Has a journal print for this period been printed? You must print the journal entries for the prior period before updating.
Journals, which are set up in Journal F/M, can be divided into sub-journals. For example, in addition to assigning journal number 1000 to Sales in SO to GL Posting F/M, you could also expense payables to post to journal number 2000 and disburse payables to post to 2500 through AP Static Control F/M and assign receivables to post to journal number 3000 in AR Static Control F/M.
As the system runs, it posts the proper entries to the appropriate journals. All the GL account entries are then divided into the categories specified. In this case, when you post the entries to the GL account number; for example, cash on hand is broken down by receivables and sales (instead of the one lump sum from all aspects of the business). This lends to increased accuracy in the audit trail for each GL account number.
All journal entries must be balanced, in other words debits = credits. If an entry is out of balance, you cannot exit the program until the entry does balance. You can correct entries in the Journal Entry program and the Prior Period Journal Entry program.
You can set the system so it will not allow journal entry corrections. To do so, deselect the Allow Journal Correction flag in GL Static Control F/M (in character, set the flag to N).