Journal Entries

A Journal Entry, also referred to as an accounting entry, is a formal record that documents a transaction in a Journal. In Axanta ERP, journal entries are made by utilizing the double entry bookkeeping system.

Double Entry Bookkeeping Systems require you to make both a debit line and credit line for each entry. In addition, the credit side and the debit side of all entries, must be equal to each other. 

In Axanta ERP, these credit and debit lines that make up Journal Entries are called Journal Items.

Creating a Journal Entry

In Axanta ERP, there are numerous operations that can lead to the creation of a journal entry, such as customer invoices, payments, vendor bills, bank statements, stock moves, and payslips. However, sometimes it is necessary to create custom journal entries, like when setting up your initial account balances.

To get to your Journal Entries, Go to Axanta ERP → Finance → Journal Entries. You will see a list view of all journal entries.

You can refer to the below video to see how to create a Journal Entry in Axanta ERP.

 
 


Below is the Snapshot and the Table to help you understand how to create a Journal Entry.

Axanta CMS - a big picture
FieldsDescription

Date

This is the date that you want the entry to be shown as being done on. It is automatically set to the current date; but it can be changed, if needed.

Journal

Select the journal you'd like to add this entry to. All journal entries require a journal to be selected.

Reference

Enter a description of the journal entry's purpose; this will appear on the journal entry itself.

Account

Select the account from which you will be making the debit/credit from the drop down menu. This is required for all Journal Items.

Partner

In Axanta, a Partner can be a customer or a vendor. If a Partner is selected in a Journal Entry with "Receivable or Payable" account, then the balances of the Customer/Vendor will be updated and also reflect on the partner statement accordingly.


Narration

Narration for the entry. In Axanta, Narration is on every line and it reflects on the account statement accordingly.

Analytical Account

Analytical account to classify the transaction as per Cost/Profit center. Learn more about Analytical Account here.

Amount Currency

Amount to be specified in currency other than base currency. If amount is to be credited then enter it with negative sign(-). Not that if you are dealing in a currency other than base then only Amount Currency to be used else leave it blank

Currency

The currency in which you wish to make the journal entry. Leave blank if you are dealing in base Currency

Debit/Credit

Amount that needs to be debited or credited from the selected account

Note

Note pertaining to the journal entry. Note that this note will not be appearing in any financial statements

Total Debit/Credit

Showing the total Debit/Credit and Balance of the journal entry

When finished, make sure that the totals of the Debit and Credit amounts are equal. When ready, hit the Save button.

You will notice that the entry has not yet been posted, and is in the Unposted state. This adds another step of validation before actually posting the entry to your journal and gives you time to ensure that everything has been entered correctly.

When ready to save this entry to your journal, hit the Post button. Once, the journal entry is posted then it won't be editable until you cancel the entry.

Note: By Default system doesn't allow to cancel a Journal Entry.

Snapshot of the posted Journal Entry

Axanta CMS - a big picture


Once a Journal Entry is posted, system will generate a Journal Number as seen in above screenshot - MISC/2021/0001

Note: Journal numbers are generated based on the setup done on Journal.

Next Topics :

->How to Cancel a Posted Transfer Entry
Supplier Payment
Transfer Entries (Bank/Cash)