Introduction
For any business, keeping track of transactions is crucial. That’s where the Journal Entry feature in Empress comes in handy. This feature allows you to register and manage business transactions in a clear and organized manner. You can also keep track of various accounts affected by these transactions.
The Journal Entry feature is used for almost all accounting entries that are not Sales and Purchase transactions. It allows you to make multi-account entries, ensuring that the sum of the debits is equal to the sum of the credits. This feature is versatile and can be used for a range of purposes, such as entering expenses, managing bank payments, and adjusting invoice amounts.
To access the Journal Entry list, navigate to: Home > Accounting > General Ledger > Journal Entry
How to Create a Journal Entry
- Navigate to the Journal Entry list and click on ‘New’.
- The default Entry Type will be ‘Journal Entry’. If you need to change this, see the section on Journal Entry Types.
- Modify the Posting Date if needed.
- Select an Account that the amount will be debited from.
- If desired, you can use a Journal Entry Template by selecting it in the ‘From Template’ field.
- If it’s a Debtor entry, select the Party Type and Party.
- Add a row where the amount will be credited.
- Ensure that the total debit and credit amounts are equal.
- Click Save and then Submit.
For a simpler process, use the Quick Entry button. Simply enter the amount, select the accounts, and add a remark to quickly create a Journal Entry.
Key Features of the Journal Entry
Accounting Entries
- Accounting Dimensions: Link a Project or Cost Center to track the costing separately.
- Bank Account No: If a Bank Account is added, the associated number will be displayed.
- Reference Type: Link this entry to another transaction. For example, if it’s related to a specific Sales Invoice, link it to the invoice.
Reverse Journal Entry
This function allows you to reverse a submitted Journal Entry. By clicking the ‘Reverse Journal Entry’ button, a new Journal Entry is created that reverses debit and credit amounts against the respective accounts.
Difference Entry
The “Difference” is the remaining amount after summing all debit and credit amounts. If this number is not zero, click on “Make Difference Entry” to automatically add a new row with the amount needed to balance the total.
Referencing
Add a Reference Number and set a Reference Date to keep track of offline transactions or bills that aren’t recorded in the Empress system.
Multi-Currency Entries
If the accounts selected operate in different currencies, check the ‘Multi Currency’ checkbox. This will show the different currency and fetch the ‘Exchange Rate’.
Journal Entry Template
By selecting a template in the From Template field, you can load details from a pre-existing Journal Entry Template.
Print Settings
Journal Entries can be printed with customized headings on your company’s letterhead. The Pay To / Recd From field is useful for printing cheques.
Conclusion
The Journal Entry feature in Empress is a versatile and crucial tool for managing your business’s transactions and accounts. Its user-friendly interface and range of functions ensure that keeping track of business operations is simple and efficient.
For more information on the different types of entries that can be done via Journal Entry in Empress, see the section on Journal Entry Types. If you require further assistance, do not hesitate to reach out to Empress support, or refer to our comprehensive user guides and resources.