Using Journal Entries in Sage X3

Mar 06 2015

Any transaction that impacts a company’s profit and loss needs to be recorded in their accounting system. A great feature in Sage X3 is that all documents such as Purchase Invoice, Sales Invoice, Shipment, etc. are coded to ‘automatic journals’, thus creating journal entries automatically when the documents are validated. Each document is coded to specific accounts in the ‘automatic journal’ setup, thereby posting the entries in the desired accounts during a transaction. However, these entries are posted in the ‘temporary’ mode which allows the user to modify the entry in terms of accounts, business partner, amount and description fields, before it is changed to ‘final’ during final validation.

Transactions related to areas other than the day to day business operations such as Rent, Miscellaneous expenses etc. are to be manually accounted for using the Journal Entry screen.

Let us walk through the steps of creating a manual Journal entry, a Recurring Journal entry and a Reversing Journal entry in Sage X3 v6.5

Creating a Manual Journal Entry

  • Open the Journal Entry screen from Financials > Journals > Journal Entry

  • Click the New button to open a blank entry

  • Select a Site (defined as a financial site)

  • Select an Entry Type from the list according to the nature of the transaction. Each type is loaded with its required settings.

  • The Number field will be automatically generated by X3 when the document is created.

  • Select the accounting Date of posting this entry.

  • Category is set to ‘Actual’ for manual entries

  • Status is set to ‘Temporary’ by default, allowing you to modify this transaction at a later stage before final validation.

  • Provide a description to this transaction at the Reference field. 

 

In the grid area, the mandatory fields to be filled will include Legal – to select the accounts concerned, Debit and Credit to record the amounts with respective descriptions for reference. Fields for analytical dimensions are also seen – select the appropriate Dimension, if any, against the line items.

Once these fields are filled, the Total Debit and Credit fields are populated at the footer. Make sure they are balanced, otherwise you get a warning message.

Click on Create button to create the entry in the system. When the Status is at ‘Temporary’, you can always make changes to the created entry.

Creating a Recurring Journal Entry

To generate the same transaction on a regular basis, say to pay Rent every month, you can create a recurring journal ‘template’ which could run every month or any period to generate the journal entry. This process removes the hassle of creating the line items with details each time.

Hence this process includes a two-step process

  1. To create a one-time ‘template’

  2. To run this template at every period desired to generate the journal entry

  • Follow the same steps as creating a manual entry except that the Category field is set to ‘Template’.

  • Click Create to create the Template. Make a note of the Number generated (GEN000004)

  • Next step is to complete the Setup of this recurring journal

  • Open the path Setup > Financials > Accounting forms > Recurring entries

  • Click New, give a Recurring Entry Code with a description

  • Select the Template Journal same as the Entry Type in the Journal Entry screen. Select the Template from the list, the one created from the Journal Entry screen (GEN000004)

  • Provide details of End date and the periodicity of generation of this journal entry 

  • Under Generation Tab, select the same Journal Type for Entry Type and Journal fields

  • Click Create to create the save the Setup of this recurring journal 

Now, to generate this recurring entry for every period,

  • Open the path Financials > Current Processings > Recurring entries > Recurring Entries

  • This screen would generate entries for multiple Recurring Journal Codes at once. For now, we will generate an entry only for one code ‘RENT’

  • Define the Until date, the date up to which the recurring journals are to be generated.

  • The generation type should be set to ‘Actual’

  • Click OK to generate entry(ies)

Creating a Reversal Journal Entry

  • Reversal entries can be created from an existing entry in two ways – Reversing individually, Mass Reversals

  • To reverse an entry individually, open the entry from Financials > Journals > Journal Entry

  • From the tool bar, click the Zooms menu to select Reversing

  • Set the appropriate Generation Type with the Reversing Date

  • Click OK to generate the Reversing Entry

 

To generate Mass Reversal of multiple entries, say at the beginning of the next Fiscal Year,

  • Change the Reversing field option to ‘To Reverse’ for the set of entries you wish to reverse at a later time

  • Define the Reversing Date of accounting the particular entry

  • Save the journal entries whichever changed to ‘To reverse’

Now, to mass run the reversing entries,

  • Open the path Financials > Current Processings > Reversals

  • Set the appropriate parameters as desired including the range of entries within a Start and End date

  • Click OK to generate reversal entries for all those entries which have been set to ‘To Reverse’ function

For any clarifications and support for , feel free to contact Mantralogix at 1-866-320-8922 and any of our Sage ERP Certified Consultants would be more than happy to assist you!


Recent posts