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JD Edwards World General Accounting I Guide
Release A9.3.x

E21540-03
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2 Overview to Journal Entry Processing

This chapter contains these topics:

2.1 Objectives

  • To understand the different types of journal entries

  • To create and revise a journal entry

  • To create journal entries using special formats

  • To create and use model journal entries

  • To review and post journal entries

  • To revise and void a posted journal entry

2.2 About Journal Entry Processing

Use journal entries to add transactions to or adjust accounts in your general ledger. Effective journal entry processing is fundamental to the accuracy of your general ledger.

Journal entry processing consists of:

  • Working with batch control for journal entries

  • Working with basic journal entries

  • Entering journal entries in special formats

  • Working with other types of journal entries

  • Working with model journal entries

  • Entering journal entries with value-added tax (VAT)

  • Reviewing and approving journal entries

  • About the post process for journal entries

  • Posting journal entries

  • Revising and voiding posted journal entries

  • Printing general journals

All JD Edwards World systems use three-tier processing to manage batches of transactions. Journal entry processing is an example of three-tier processing. The term three-tier refers to three necessary steps that you perform.

The following graphic illustrates three-tier processing.

Figure 2-1 Three-Tier Processing

Description of Figure 2-1 follows
Description of "Figure 2-1 Three-Tier Processing"

2.2.1 Where Are Journal Entries Generated?

Journal entries are generated in two places:

  • You enter transactions manually through the General Accounting system, such as:

    • Accruals

    • Adjustments

    • Reclassification of transactions

  • The system generates journal entries based on transactions from another system, such as:

    • Accounts Payable

    • Accounts Receivable

    • Payroll

2.2.2 What Are the Types of Journal Entries?

You can adapt the journal entry process to meet your needs by using the following types of entries:

Journal Entries Description
Journal entries for multiple ledgers You can enter journal entries for the various ledgers you have set up for budgets, statistical information, units, and so on.
Reversing journal entries You can mark accrual journal entries to be reversed. After they are posted, the system creates and posts the reversing entries to the first day of the next period.
Percent journal entries You can allocate amounts to different accounts in your G/L distribution based on the percentage entered for each line item.
Model journal entries You can reduce data entry time by creating a set of templates for frequently used journal entries.
Recurring journal entries For transactions that recur on a regular basis, you can manage journal entries that are created using the Cost Allocations process. See Work with Cost Allocations in the JD Edwards World General Accounting II Guide.

2.2.3 When Do You Review and Approve Journal Entries?

After you enter journal entries, you can review and approve them at any time during the general ledger period before posting. Only approved batches of transactions are eligible to be posted. Use the review function to:

  • Review and approve a batch for posting

  • Place a batch in pending status so it cannot be posted until further analysis is completed

  • Review and change journal entries

2.2.4 What Happens When You Post a Journal Entry?

After you review and approve journal entries, you post them to the general ledger. The post program:

  • Selects unposted, approved batches of journal entries and edits each transaction against certain tables.

  • Posts accepted transactions to the Account Balances table (F0902)

  • Changes the status of the journal entry batch to indicate that it is posted

  • Marks the detail lines of the journal entry as posted in the Account Ledger table (F0911)

  • Produces a posting edit report, which lists any errors, and a posting journal report, which lists successfully posted batch details

2.2.5 How Are Balances Maintained?

You can process journal entries for different types of accounting information needs using different ledgers. The system uses ledger type codes to separate balance amounts and units for each ledger. The following shows some examples of ledger type codes and their corresponding ledgers:

Ledger Type Code Ledger
AA Actual amounts
BA Budget amounts
AU Actual units
BU Budget units
CA Foreign currency amounts

The following graphic illustrates how the system maintains various account balances.

Figure 2-2 Account Balance Maintenance

Description of Figure 2-2 follows
Description of "Figure 2-2 Account Balance Maintenance"

2.2.6 What Are the Types of General Journal Reports?

You can print a general journal report to examine journal entry transactions before you post them to the general ledger. Printed reports provide an alternative to reviewing the general journal online. They are especially helpful when you are researching out-of-balance conditions. You can select from three types of reports:

  • Unposted journal entries only,

  • Posted and unposted journal entries in batch number sequence,

  • Posted and unposted journal entries in account number sequence.