Journal Entry

A journal is a Entry Directly into the GL Accounts. The general journal is where double entry bookkeeping entries are recorded by debiting one or more accounts and crediting another one or more accounts with the same total amount. The total amount debited and the total amount credited should always be equal, thereby ensuring the accounting equation is maintained. These are used for a number of reasons, primarily to record transactions which are not associated to an invoice.

Header Areas

Description - When carrying out a Journal an entry must be made in Description at the top of the journal screen.

Notes - are used merely as a description so can be whatever the user wants.

Entered date - will always be the current date when the journal is being entered

Posted date Is the date you want the system to reference the journal for reporting and querying purposes.

GL Lines Entry

Note: Account numbers shown in the examples are samples only, check your General Ledger accounts for your actual GL codes.

Ac>> F4 to Select or Enter the GL Account Number you need to either debit or Credit then Tab

GL Account>> Will display the Name of the GL Account you have selected

Department Will show the GL Department

Franchise For Franchises Only - Will show the Franchise code if the GL you have selected is only available for a specific GL.

Control # Simply tab through this section as the GLs selected will have their Control # preset and it does not need to be entered again.

Debit/Credit Enter the Amount you wish to debit or Credit in the applicable column. Keep an eye out for the red text hints at the bottom which will guide you whether the Debit will increase or decrease dependant upon the GL Account you selected.

Stock #> For Dealerships Only - F4 to Select or Enter the Vehicle Stock Number if you are doing a Journal to a Vehicle Stock GL

Cost Type For Dealerships Only - Use the drop down to select what Cost Type your Journal is for.

GST Type Select the GST Type as applicable for your journal entry. NOTE: you can do an entry straight to the GST Collected or Paid GLs if the amounts are separate entries and not the normal division of 10%.

Account >> If you have chosen the Trade Debtors or Creditors Account, you will have to select the specific Debtor/Creditor Account the amount is for.

Payee When you do a Journal to the Cash in Bank account (1020) for a Credit, the Payee name can be entered.

Chq# Enter the specific Cheque number the journal is for if applicable. Important Note: When the Cash in Bank account (1020) is Credited the Payee and Cheque Number must be entered (from your Cheque book) by pressing Tab across the screen to the payee and Cheque number. This is important as the Cheque numbers will get out of sequence if this is not done.

Branch For Branches Only - as GLs are consistent across the Branches, enter the Branch ID will populate based on the branch you logged into Autosoft under. If the Journal is for a differing branch, log out and log into that branch before continuing your journal.

Buttons & Options

Abort Allows you to exit without saving your Journal Entry.

Post Finalises the Journal and will only be available if your Total Debits match your total Credits.

Change Post Date Allows you to Change the Post date of a Posted Journal.

Standing Journal Are Template Journals that you can setup for Journal entries you use regularly. These can be setup in the Standing Journals program.

Change GL Account Allows you to change the GL you have selected if the journal is still Open, saving you having to delete the whole line and reenter all the values.

Copy Journal Allows you to Copy a Posted Journal.

Print Audit trail- Run Report Allows you to run an Audit Trail report directly from the Journal screen to give you a summary report on the different entries on the journal.

GL Item Notes An extra Notes field for the transaction.

What were you trying to do?	Video/Knowledge base guide
Do a Journal	http://service.autosoft.com.au/entries/21692749-How-to-Do-a-Journal-
Journal says GL Account will not allow Journals	http://service.autosoft.com.au/entries/21791504-Allowing-Journals-to-GL-Control-Accounts
Setup Pre Filled Journals for Frequent use	http://service.autosoft.com.au/entries/22161060-How-to-Setup-Prefilled-Journals-For-Frequent-Use-as-Standing-Journals
Enter your Opening Balances of your GL Accounts	http://service.autosoft.com.au/entries/21506700-How-to-Do-Initial-Entry-Creditor-Debtor-and-General-Ledger-Opening-Balances-
Learn more about GL Accounts, Journals, Standing Journals and Maintenance	Go to your Client Portal Login - Training Lessons - General Ledger Series - General Ledger Basics Part 2

When a transaction is carried out in Autosoft various accounts in the General Ledger are updated. The general ledger accounts can be updated either manually through a Journal or automatically by; invoicing, paying creditors, receiving debtor receipts etc.

Below are samples of typical journal entries.

A Debtor Receipt has been entered twice by mistake, to reverse the entry carry out the following
GL Code	Description	Debit	Credit	Comments
1100	Debtor Account	$100.00		Select the Debtor at the Debtor/Creditor>> field.
102o	Bank Account		$100.00
When you process the journal above leave payee and Cheque number BLANK.

To carry out a reversal of a Creditor Payment entered twice carry out the following
GL Code	Description	Debit	Credit	Comments
1020	Bank Account	$100.00
2000	Creditor Account		$100.00	Select the Creditor at the Debtor/Creditor>> field

Below are examples of how transactions are updated:

Debtor Receipt

Below are examples of two debtor receipts, one includes settlement discount given
GL Code	Description	Debit	Credit
1100	Debtors - Trade and Vehicle		500.00
1020	Cash at call	500.00
The GL Accounts above have distributed the values by: reduced the amount in the Debtors account by $500.00 (balance sheet), added $500.00 to Cash at Call (balance sheet).

Debtor Receipt with Settlement Discount Given

Settlement discount of $50.00 was given to this debtor
GL Code	Description	Debit	Credit
1100	Debtors - Trade and Vehicle		550.00
2050	GST Collected	4.55
5330	Net Discounts	45.45
1020	Cash at call	500.00
The GL Accounts above have distributed the values by: reduced the amount in the Debtors account by $550.00 (balance sheet), reduced GST Collected by $4.55 (balance sheet), increased Discounts by $45.45 (Profit & Loss), added $500.00 to Cash at Call - Cheque Account (balance sheet). Note: Settlement Discount Given is basically a credit to a customer.

Creditor Payment

This is a normal creditor payment of $250.00
GL Code	Description	Debit	Credit
2000	Creditors - Trade	250.00
1020	Cash at call		250.00
The GL Accounts above have distributed the values by: reduced the amount in the Creditor account by $250.00 (balance sheet), reduced Cash at Call by $250.00 (balance sheet).

Creditor Payment with Settlement Discount Taken

Below is a creditor payment with Settlement Discount Taken of $20.00
GL Code	Description	Debit	Credit
2000	Creditors - Trade	320.00
1200	GST Paid		1.82
5330	Net Discounts		18.18
1020	Cash at call		300.00
The GL Accounts above have distributed the values by: reduced the amount in the Creditor account by $320.00 (balance sheet), reduced GST Paid by $1.82 (balance sheet), increased Net Discounts by $18.18 (Profit & Loss), reduced Cash at Call by $300.00 (balance sheet).

NOTE: The setup of separate Discounts Paid and Discounts Received GL accounts are up to the preference of the user and their Accounting advice. For this example, one Net Discounts (Expenses) account is being used (GL Account 5330), but a 3000-level account as a Discounts Taken GL Account and a 5000-level account as a Discounts Given GL Account is an acceptable way to divide these discounts accounts for separate reporting.

Manual Cheque Payments

Manual Cheque payment for an electricity account
GL Code	Description	Debit	Credit
1200	GST Paid	24.50
1020	Cash at call		269.50
5290	Light & Power	245.00
The GL Accounts above have distributed the values by: increase the amount in the GST Paid account by $24.50 (balance sheet), reduced Cash at Call by $269.50 (balance sheet), increase the amount in Light & Power by $245.00 (Profit & Loss).

Parts Invoice

This is a parts invoice to a debtor. The invoice amount of $275 includes freight and GST
GL Code	Description	Debit	Credit
1100	Debtors - Trade and Vehicle	275.00
2050	GST Collected		25.00
1300	Parts Inventory Control		153.59
3740	Sales - Parts Counter		200.00
4740	C.O.S Parts Counter	153.59
3780	Freight Income		50.00
The GL Accounts above have distributed the values by: increasing the amount in the Debtors account by $275.00 (balance sheet), added $25.00 to GST Collected (balance sheet), reduced the Parts Inventory by $153.59 (balance sheet), added $200.00 to Sales Parts (Profit & Loss), added $153.39 to C.O.S. Parts (Profit & Loss), added $50.00 to Freight Income (Profit & Loss). Note: If the invoice above was a cash sale the only change would be that account 1100-Service & Parts Debtors would be 9999-Bank Undeposited Funds.

Workshop Invoice

Below are the dissections for a workshop invoice for a debtor. The invoice of $230.00 has parts and sublet repairs
GL Code	Description	Debit	Credit
1100	Debtors - Trade and Vehicle	230.00
4630	C.O.S Other	.01
2050	GST Collected		20.91
3630	Sales Service - Other		89.10
4630	C.O.S. Service - Other	76.00
1380	Sublet Repairs Inventory		76.00
1300	Parts Inventory Control		86.36
3740	Sales - Parts Counter		120.00
4740	C.O.S. - Parts Counter	86.36
The GL Accounts above have distributed the values by: increasing the amount in the Debtors account by $230.00 (balance sheet), reduced the C.O.S Other account by .01 for Rounding (Profit & Loss), added $20.91 to GST Collected (balance sheet), added $89.10 to Sales Service - Other, for the Sublet Repairs (Profit & Loss), added $76.00 to C.O.S. Service - Other, for the Sublet (Profit & Loss), reduced the Sublet Repairs Inventory by $76.00 (balance sheet), reduced the Parts Inventory by $86.36 (balance sheet), added $120.00 to Sales Parts (Profit & Loss), added $86.36 to C.O.S. Parts (Profit & Loss).

NOTE: In the Workshop Invoice, various Sales, C.O.S and Inventory Accounts can be used depending on the sales-types that are setup in the Workshop Sale Types.

Car Sales GL Interaction

Below is outlined the interaction with the general ledger when a process is performed in the Car Sales areas of Autosoft. Each example uses Autosoft's standard GL chart of accounts.

1. Vehicle Acquisition

Used Car Vehicle Acquisition
GL Code	Description	Debit	Credit
1260	Stock - Used Cars	10,000.00
1200	GST Paid	1000.00
2000	Creditors - Trade		11,000.00
GST implications: Tax credit $1,000.

New vehicle acquired from manufacturer and placed on floor plan
GL Code	Description	Debit	Credit	Comment
1250	Stock - New Cars	10,000.00		Increase Inventory
1205	GST Floorplan Pending	1000.00		GST claim is made when the floor plan is paid out
2310	Floorplan Loan Account		11,000.00
GST implications: none. $1, 000 will be available as tax credit when floor plan is paid out.

Note: If an amount is entered into Warranty Provision and the option "Use Warranty Provision" is ticked in the system file, then the following will be updated in addition to those listed above:
GL Code	Description	Debit	Credit
2260	Provision for Warranty		500.00
4450	C.O.S Warranty Expenses	500.00

2. Allocation of Costs to Vehicle

A cost can be to a vehicle by either:

Creditor Invoice
Manual Cheque Payment
Journal Entry

When a cost is allocated to a vehicle, the system will check to make sure that the General Ledger account you have entered is the correct account. The account will be different based upon whether the vehicle is in stock or the vehicle is sold. If the account is incorrect, the prompt that will appear will be similar to: "The account selected is not the vehicle asset account. Change this account to the vehicle asset account?".

Costs for a vehicle in stock

If the vehicle is in stock, the vehicle asset account should be selected (e.g. Account 1260-Stock Used Cars).
When the vehicle is sold, the system will automatically credit the inventory account and debit Cost of Sales. (see section 3 - Selling a Vehicle).

Example cost: allocating a Green Slip for $310 for a vehicle in stock. Note that Green Slips, Rego Cost and Other GST Free costs - are all GST free.
GL Code	Description	Debit	Credit	Comment
2000	Creditors - Trade		310.00
1260	Stock - Used Cars	310.00		Vehicle inventory account as set-up in the vehicle Group File
GST implications: None. GST Free - will appear on BAS as GST Free Supplies.

If the vehicle is sold, the Cost of Sales account should be selected. (e.g. Account 441 - C.O.S. Vehicle Green Slips).

Example Cost: fitting 2 tyre's $275 for a vehicle that has been sold.
GL Code	Description	Debit	Credit	Comment
2000	Creditor		275.00
4510	C.O.S. New Vehicles	250.00		Cost of sales account as set-up in the vehicle Group File.
1200	GST Paid	25.00
GST implications:Tax credit $25

3. Sell Vehicle

Description	Value
Sold Vehicle for	13,990.00
Vehicle Purchase cost (including GST)	11,000.00
Reconditioning Costs (Tyre's Panel Beating)	385.00
Trade In Allowance	5500.00
Overall owing on Trade-In	1000.00
Finance Company Payout	4000.00

Sell Vehicle
GL Code	Description	Debit	Credit	Comment
3540	Sales - Used Vehicles		12,718.19	Sale of vehicle (less GST)
1110	Vehicle Debtors	12,490.00		Changeover price. ($13,990 less $5,500 trade-in plus $4000 Payout).
4510	C.O.S. New Vehicles	350.00		Reconditioning costs allocated to vehicle while in stock.
1250	New Vehicle Inventory		350.00	Reconditioning costs allocated to vehicle while in stock.
4540	C.O.S. Used Vehicles	10,000.00
1260	Stock - Used Vehicles		10,000.00
2050	GST Collected		1271.81	GST on purchase price, 1/11 of $13,990
1260	Stock - Used Cars	4000.00		Value of trade in (exclusive of GST and over allowance).
4420	C.O.S. Vehicle Over allowance	1000.00
2070	Payout Pending on Vehicles		4000.00
2050-1	GST Pending on trade-in's	500.00		Holding account for GST collected n trade-in, claimable when the traded vehicle is sold.
GST implication: Tax owing $1271.81. $500 available when traded vehicle is sold.

The traded vehicle above was wholesaled at cost.

The following General Ledger accounts are updated:
GL Code	Description	Debit	Credit	Comments
3540	Sales - Used Vehicles		5000.00	Sale of vehicle (less GST.)
1100	Trade & Vehicle Debtors	5500.00		Wholesale company owes this amount.
4540	C.O.S. Used Vehicle	4000.00		Purchase price of vehicle (less over allowance).
1260	Stock - Used Vehicles	1000.00		Value of over allowance
1260	Stock - Used Vehicles		5000.00
2050	GST Collected		500.00	GST collected on sale of vehicle.
2050-1	GST Pending on trade-in's		500.00	Reverse GST pending when the vehicle was traded.
1200	GST Paid	500.00		Claim GST from when the vehicle was originally traded.
GST implication: None. (Tax owing of $500 from sale of vehicle. Tax credit of $500 from when vehicle was originally traded).

4. Floor plan

Add vehicle to floor plan.

If vehicle is added to floor plan during acquisition, refer to "1. Vehicle Acquisition".
The following table shows the general ledger accounts updated when a vehicle is added to floor plan after acquisition.

Vehicle purchased for $8,800. Total value floor planned 1 week after acquisition.
GL Code	Description	Debit	Credit	Comments
218	Accrued Floor plan		8800.00	Floor plan owing account
1020	Bank Account	8800.00		Finance company pays you the value of floor plan.
2050	GST Collected		800.00	The GST paid when the vehicle was acquired is reversed. (i.e. cannot claim GST at this time).
2040	Floor plan GST Pending	800.00		The GST paid is placed in a holding account until the floor plan is paid out.
GST implication: None. $800 will be available as tax credit when floor plan is paid out.

Pay Vehicle Floor plan

After the vehicle is sold, the floor plan needs to be paid out.

The following accounts are updated:
GL Code	Description	Debit	Credit	Comments
2180	Accrued Floor plan	8800.00		Floor plan owing account
1020	Bank Account		8800.00	Cheque is drawn to the finance company.
1200	GST Paid	800.00		The GST paid can be claimed now that the floor plan is paid out.
2040	Floor plan GST Pending		800.00	The holding account is credited.
GST implication: Tax credit $800

General ledger codes used in the above examples are taken from Autosoft's standard set of GL account codes. Your GL account codes could be different to those represented above.

To check account dissections from a transaction; find the transaction number i.e. invoice number, at General Ledger Reports choose Transaction Report, select Individual Transaction, type the Reference number and run.

What were you trying to do?	Video/Knowledge base guide
Do a Journal	http://service.autosoft.com.au/entries/21692749-How-to-Do-a-Journal-
Allow Journals to specific GLs	http://service.autosoft.com.au/entries/21791504-Allowing-Journals-to-GL-Control-Accounts
Reverse a Journal	http://service.autosoft.com.au/entries/21422709-How-to-Reverse-Out-a-Journal-Entry