PROCEDURE CHANGE ALERT: If you use recurring/reversing entries you will need to revise your procedures to take advantage of the new features. Please email us for assistance and mention that you are currently using recurring/reversing entries.

This document explains how to enter General Ledger journal entries with automatic reversals, along with normal recurring entries, such as weekly payroll, taxes, etc.. There are many variables in the processing of the entries, which will be explained, however for ease of explanation the following scenario will be used: payroll is accrued at the end of the month (with varying amounts each month) and reversed on the first day of the following month.

Note: all journal entries (obtained & manually) have a Transaction # Counter. This counter number is carried through to the posting registers, to the YTD Master files and the Trial Balance. See the very end of this document for an explanation of where the counter is set and how it can be used for ease in auditing.

SETUP TEMPLATE

Add a template, go to:

General Ledger (Module 4)
- Recurring Journal Entries (Task 18)
  - Enter (ADD) New Template (Sub-task 1)
  - Note: a template can also be added through Task 1; Sub-task 5; Option 3 – Enter (ADD) New Template
    - Field 1: Template Number (6 numeric characters). Enter your own number or press ENTER for the system to automatically assign a number.
    - Field 2: Template Name (30 alphanumeric characters). Enter a description of the template. As a suggestion: if there will be numerous templates, some weekly, bi-weekly and/or monthly, name them in a ‘range’ for ease in choosing the templates. For example, start all the weekly templates with a W (W-payroll, W-taxes); and start the monthly ones with an M (M-payroll accrual, M-tax accrual) and quarterly ones with a Q, etc.
    - Field 3: Start Date When should this template begin? Choices are: enter the date manually using a ‘mmddyy’ format; use the TAB key to pick from the list of your accounting period dates; or leave blank for ALWAYS, meaning the entries in this template will always be used.
    - Field 4: End Date When does this template end? Choices are: enter the date manually using a ‘mmddyy’ format; use the TAB key to pick from the list of your accounting period dates; or leave blank for ALWAYS, meaning there is no end date and the entries in this template will always be used.
    - Field 5: Day to Apply Which day of the accounting period should this template be repeating on? Enter any day (i.e. 1^ST, 2^ND, 10^TH); LAST day of the accounting period or ASK which means a date must be entered manually each time.
    - Field 6: Day to Reverse Which day of the accounting period should this template be reversed on? Enter any day (i.e. 1^ST, 2^ND, 15^TH); LAST day of the accounting period or ASK, which means a date must be entered manually each time; or NONE. NOTE: if NONE is entered, the template is treated as a normal Recurring Entry, not a Reversing Entry.
    - Field 7: Period to Reverse Which period should this template be reversed in? Enter SAME for in the same period; NEXT for the next accounting period; ASK which means a date must be entered each time; or NONE. NOTE: if NONE is entered, the template is treated as a Recurring Entry, not a Reversing Entry. Also if field 6 is NONE, then field 7 must also be NONE.
    - Field 8: On Hold? N-use this template; Y-don’t use this template

Second Screen: Enter the GL account numbers for this template. An amount must be entered into each GL number/line (a penny will suffice) if the amounts will change from month-to-month. The actual amounts can be entered once the template is obtained and the GL entries created.

Sample setup of a Template based on scenario described at the beginning of the document:

First Screen:

1. Template number: 000011

2. Template name: Payroll accrual/reversal

3. Start date: blank – meaning Always

4. End date: blank – meaning Always

5. Day to apply: LAST day of every period

6. Day to reverse: 1ST day of period

7. Period to reverse: NEXT period

8. On hold: N

Second Screen (note – amounts are entered as pennies, because the actual amount will vary each month):

ACT-NUM SRC ----DEBIT--- ---CREDIT--- REFERENCE

1 345-02-01 REC* 0.01 Payroll accrual/reversal

2 347-20-01 REC 0.01 Payroll accrual/reversal

3 345-01-01 REC 0.01 Payroll accrual/reversal

4 348-00-01 REC 0.01 Payroll accrual/reversal

5 830-00-01 REC 0.04 Payroll accrual/reversal

*Note: we suggest the source (SRC) be REC for the reversing entry setup, as the actual reversing entry will automatically be given a source of REV, thereby making it easy to determine what is the original entry and what is the reversing entry.

USING THE TEMPLATE:

To manually obtain the reversing templates (see section below titled: OBTAINING AND POSTING REVERSING ENTRIES for an explanation of manual versus automatic ‘obtaining’), go to Selection 6 found in any of the four places located in the GL module indicated below:

(1) Task 8 – Recur/Reverse TRX Maintenance; Selection 6

(2) Task 18; Sub-task 8 – Recurring Template Administration; Selection 6

(3) Task 1; Sub-task 5; Option 3; then Selection 8 – Recurring Templates Administration; Selection 6

(4) Task 1, Sub-task 5, Option 4 – Recurring Template Administration, Auto & Manual Options; Selection 6

Selection: #6 - Obtain Recurring Journal Entries: This will take you step-by-step through selecting the appropriate recurring templates.

Step 1, Screen 1: Enter ranges for recurring templates.

The next screen will ask for a range of recurring templates that will be used to create manual transactions in Manual TRX Entry and Editing (Task 1).
Subsequent screens will show the actual templates within a selected range and help narrow down the choices even further by picking or rejecting individual templates.

Step 1, Screen 2:

Select beginning and ending template names. Use the TAB key to get a list of templates. In the listbox there is a column for DATE, which lists if templates are an automatic or ASK template (a.k.a. Un-dated templates) and a column for REV to indicate which templates are reversing.
- Un-dated templates: templates with ASK (for date of posting) are found in the following fields: field #5 - Day to Apply; field #6 – Day to Reverse; and field #7 - Period to Reverse
NOTE: To turn off the help screens answer "N" to the "Show help screens" question.

Step 2, Screen 1: Information on what will occur on the following screen

The next screen will list all the recurring templates selected, within the range entered, on the previous screen.

Step 2, Screen 2:

The system will automatically select all the templates in the list. Reject a template by keying an "N" on its row and pressing ENTER.
The F7 and F8 keys will select or un-select all templates.
Only the selected rows (templates) will be used.
Press the LEFT ARROW key when ready to continue

Step 2, Screen 3:

Enter G/L Posting Date
- Un-dated templates (with ASK dates) will post to this date and the reversing entry date that is also displayed
- Dated templates (with 1^ST, LAST, NEXT, etc dates) will post to the same period as this date.

Step 2, Screen 4:

Press the ENTER key to add manual entries for the selected templates.
Left arrow to cancel.

Step 3, Screen 1: Edit, print, and post the new recurring entries.

The system will indicate how many new recurring entries were added to G/L task #1. "Manual TRX Entry & Editing".
Use the LEFT ARROW key to end/cancel or the ENTER key to continue:.

The system brings you back to select another or group of templates. If there are more templates to select, repeat from Step 1, Screen 1. If no more templates need to be selected, use the LEFT ARROW key to exit. The selected templates are in Task #1 – Manual TRX Entry and Editing, waiting for any editing that may need to be done.

OBTAINING AND POSTING REVERSING ENTRIES:

We suggest that reversing/recurring entries be in their own batch for ease in auditing. The templates may be obtained automatically or manually based on the setup in Selection #7: Set Options for Automatically Obtaining Recurring Entries, which is found below in Template Administration.

IF the system is set to automatically add the reversing (and recurring) journal entries, they will be in Task #1 (Manual TRX Entry and Editing), based on the dates they should be automatically ‘obtained’, waiting for the accounting personnel to edit and post the journal entries.

IF the system is configured so that the entries must be manually created, that task must be performed through one of the 4 menus that show the program “Create Manual Entries from Recurring Templates” (mentioned in TEMPLATE ADMINISTRATION under #6 "Obtain Recurring Journal Entries" below). Once the entries are created, they will be in Task #1 (Manual TRX Entry and Editing) waiting for the accounting personnel to edit and post the journal entries.

IMPORTANT NOTE: When the system creates the original entry, it automatically creates the reversing entry (with a source of REV) for the date designated in the template. Using the scenario described at the beginning of this document:payroll is accrued at the end of the month and reversed on the first day of the following month, the following will occur on the June 30^th posting, as an example: there will the entry for the payroll accrual dated June 30 PLUS there will the reversing entries dated July 1 on the same posting. Thereby affecting the June 30^th Trial Balance and Financial with the accrual figures, but the reversing amounts won’t be on those reports until July 31^st.

TEMPLATE ADMINISTRATION

Maintenance on the reversing templates can be found in four places:

(1) Task 8 – Recur/Reverse TRX Maintenance

(2) Task 18; Sub-task 8 – Recurring Template Administration

(3) Task 1; Sub-task 5; Option 3; then Selection 8 – Recurring Templates Administration

(4) Task 1, Sub-task 5, Option 4 – Recurring Template Administration, Auto & Manual Options

There are 7 programs available in the 4 areas mentioned above and all are identical.

Copy Reversing Entries: Create new reversing entries by changing the start/end dates on existing reversing entries already created in Task 18. Selection includes debit/credit reference, plus allows for the edit of the dollar amount and description on the entries.
Purge Expired Rec/Rev Entries: Remove expired entries from Task 18 by keying in a cutoff date. Note: we recommend leaving 2 years of entries in Task #18 in case they are needed to re-do an old period in the GL.
Rev/Rec JE Listing by DR or CR Account: Prints a report of recurring or reversing entries created in Task #18. Ranges are Debit or Credit account, source and start date The report can print in credit account, debit account, or template number order.
Change recurring entry dates: This program allows you to change the ending date for a group of recurring entries (and being reversing entries are also recurring entries, they will also be affected). Selection is by template name and end date.
Remove Start/End Dates from all Reversing Entries: This is a one-time only program that removes the start and end dates for all reversing templates. Recurring templates are ignored. Prior to April 2005, reversing entries applied the original entry on the start date and reversed it on the end date. By removing the start/end dates on reversing entries it now makes them easier to maintain because you will no longer need to make copies for each new period and purge the ones for the old periods. NOTE: If you want to continue using start/end dates for reversing entries, you can still save a lot of work/time by changing the entries to span a full year instead of a single period. Use subtask "Change Recurring Entry Dates" to extend the end dates for the reversing entries.
Obtain Recurring Journal Entries: Information for this selection is found above in Using the Templates.
Set Options for Automatically Obtaining Recurring Entries:
- Option 1. Automatically obtain daily recurring entries? Y/N
  - Y = The system will create new transactions in G/L task #1 "Manual TRX Entry & Editing" from recurring templates automatically every day, based on how the templates were set up. I.e. if today is the LAST day of the month, all templates with a “Day to Apply” of LAST will automatically be obtained and will appear in Task #1.
  - N = Turn off the automatic recurring entries feature. Recurring entries must be obtained manually using: “#6 – Obtain Recurring Journal Entries” found in 4 different places – (1) Task 8; (2) Task 18, Sub-task 8; (3) Task 1, Sub-task 5, Option 4; and (4) Task 1, Sub-task 5, Option 3, Selection 8.
- Option 2. Automatic daily recurring templates become due after 06/22/xx. This only has meaning if #1 above = Y. Automatic recurring entries will not be created on or before this due date. This date is set once.
- Option 3. The next recurring template transaction number should be: 000009. Which number should the system generated template numbers begin?
- Option 4. For testing only, make TODAY be: 06/21/xx. For TESTING only, use this date as the TODAY date; leave blank for actual TODAY to be used.

TRANACTION COUNTER (a.k.a. Transaction ID):

The transaction counter is setup in the

G/L module (Module 4)
- System Management Functions (Task 32)
  - Set Values for Counters (Sub-task 28)
    - GL Transaction # (field 1).

As each obtained or manually entry is made, a GL Transaction ID number is assigned. A practical use for the transaction number is: you are looking at the Trial Balance and see an entry in a GL account, but you have no idea what is the ‘corresponding’ entry. You can make note of the Transaction # and go to the YTD Master (Task 20) using Sub-task 4 (Print Selected YTD Records) print or view a report limited to the Transaction # in question. All G/L account records with the Transaction # in question will appear on the report.

Task 18 - Reversing & Recurring Journal Entries

SETUP TEMPLATE

TEMPLATE ADMINISTRATION