Journal Types

Journal transactions can be entered and validated by the General Ledger module through either online conversations or batch programs.  The following types of journals can be entered online:

·     Manual journals.  These one-time journals are entered and posted for a single fiscal period.  Online manual journals can be entered for the current period or for a future period.  However, future period journals can be posted only in the period associated with the journal.  Online manual journals are entered and validated by the Journal Validation Conversation (GL010E).  Valid journals are immediately made available for inquiry and reporting purposes.  Journals that were accepted in error are added to an error correction file.  These journals can be reviewed and updated through the Journal Validation Conversation.

·     Recurring journals.  Accounts debited or credited for these transactions remain the same each period, but the individual transaction amounts of the journal are not fixed.  Each recurring journal is entered once and then selected and updated during each period the journal is required for posting.  Common examples of recurring journals include expenses for utilities and wages and inventory calculations.  Recurring journals are entered and validated by the Recurring/Standing Journal Validation Conversation (GL020E) and are stored on the Recurring/Standing Journal Transaction File.  They are selected for posting during each appropriate period by the Journal Validation Conversation (GL010E). 

·     Standing journals.  Both the accounts debited or credited for these journals and the individual transaction amounts remain the same each period.  Each standing journal is entered once and then selected for posting each period.  Common standing journals include expenses for rent and insurance and some depreciation calculations.  Standing journals are entered and validated by the Recurring/Standing Journal Validation Conversation (GL020E) and are stored on the Recurring/Standing Journal Transaction File.  They are selected for posting each period by the batch Standing Journal Selection Program (GL035P). 

·     Intercompany journals.  These are one-time journals entered and posted for a single fiscal period. These journals record transactions between legal entities.  Intercompany journals can be entered for the current or a future period.  However, future period intercompany journals can be posted only in the period associated with the journal.  Common intercompany journals include inventory transfers and initialized cash disbursements for expenses incurred by multiple locations.  Intercompany journals are entered and validated by the Intercompany Journal Validation Conversation (GL040E).  Valid intercompany journals are immediately made available for inquiry and reporting purposes.  Intercompany payable and receivable transactions are automatically generated for valid journals.  Intercompany journals that were accepted in error are added to an error correction file.  These journals can be reviewed and updated through the Intercompany Journal Validation Conversation.

·     Reversing journals.  Any online manual, recurring, or standing journal can be automatically reversed by specifying an R in the reversal code field of the Journal Header Screen.  A reversal code of R indicates that the system will generate a reversing journal in the next fiscal period to back out the journal entered and posted in the current period.  Reversing journals are typically used to ensure that only the correct portion of any expense accrued over more than one fiscal period is posted for each fiscal period.  Common expenses that may require reversing journals include wages and rent.

·     Adjustment journals.  These one-time journals are entered and posted in fiscal periods that were final posted prior to the current fiscal period.  Common types of adjustment journals include prior-year audit adjustments and actual period statistics that were not available prior to the final period close.  Adjustment journals are entered and validated by the Adjustment Journal Validation Conversation (GL050E) and are stored on the Adjustment Journal Transaction File.  They are posted to the General Ledger by the Adjustment Journal Post Program (GL230P). 

The following types of journals are processed in batch mode:

·     Subsidiary system (subsystem) journals.  These are one-time transactions generated and passed to the General Ledger module by a subsidiary accounting system (such as accounts payable, accounts receivable, or order entry).  Subsystem journals are validated and batch balanced by the Subsystem and Batch Journal Validation Request Program (GL030P).

·     Allocation journals.  These journals are generated during allocation processing.  Allocation journals are produced by the Allocation Distribution Program (GL120P).

·     Revaluation journals.  These journals are generated on request for entities carefully watching foreign currency exposure.  Revaluation can only be performed if foreign currency processing is available.  Account balances are updated for the current period to reflect current exchange rates.  These transactions are automatically reversed out in the next period.