21st Century Accounting Tutorials - Checklists

General Journal
and Custom Journals

You enter both sides of each transaction. Debit and credit entries must balance. Enter debits in the debit column and credits in the credit column as positive amounts.

The system posts debits and credits you enter to the accounts you specify.

Deposits

For each deposit, you enter the bank account ID and the deposit number with the first entry in the batch, and the receipt amount for each entry.

How you indicate the credit side of the distribution for each entry depends on the type of receipt, below.

When you post a deposit batch, the system debits the deposits clearing account for the amount of each receipt in the batch and then credits the clearing account and debits the bank account for the deposit (batch) total. The result is that the deposit is posted to the bank account as a single entry and the clearing account activity sums to zero.

For deposits from customer receipts, select Customer as the Receipt Type, enter the customer account, the amount of each receipt, and select the invoices to which to apply the receipts.

The system credits the Receivables control account and the customer account for the amount of each receipt plus any discounts taken, and debits the Receivables discount account for the discounts taken. The system debits the deposits clearing account for the amount of each receipt, and then credits the clearing account and debits the bank account for the deposit (batch) total.

For deposits from customized cash receipts journals you configure debit and credit prompts for each journal beforehand, then select your journal as the Receipt Type, enter the receipt total, and the account distribution at your preconfigured prompts.

The system debits or credits the accounts for the amounts you specify, debits the deposits clearing account for the amount of each receipt, and then credits the clearing account and debits the bank account for the deposit (batch) total.

For deposits from other sources, you enter the bank account ID, the receipt total, and the account distribution.

The system debits or credits the accounts for the amounts you specify, debits the deposits clearing account for the amount of each receipt, and then credits the clearing account and debits the bank account for the deposit (batch) total.

Disbursements Checks

You enter the bank account ID, the check numbers for manual checks, the amount of the check, and the G/L accounts and amounts to debit.

The system credits the bank account for the amount of the check and debits the G/L accounts for the amounts you specify.

Void Checks

For Payables checks, you enter the bank account on which the check was written, a posting date for the void transaction, and the check number.



For disbursements checks, you enter the bank account on which the check was written, a posting date for the void transaction, and the check number.

For paychecks, you enter the bank account on which the check was written, a posting date for the void transaction, and the check number.
















For payroll tax remittance checks, you enter the bank account on which the check was written, a posting date for the void transaction, and the check number.

The system debits the bank account for the check total, credits the Payables control account and the vendor account for the check total and any discounts taken, and debits the Payables discount account for any discounts taken.

The system debits the bank account for the check total and credits the G/L accounts to which the original check was distributed.


The system debits the bank account for employee net pay.

The system credits the general ledger expense accounts for all income factors (which include salaries, wages, cash benefits, expense reimbursements, commissions, etc.) and for vacation and sick accrual amounts paid out.

For taxes (employee withholding and employer contribution), debits the configured liability accounts and updates the "Current liability" amounts in the Taxes windows. For employer contribution, credits the configured expense account.

For deductions (employee deduction and employer contribution), debits the configured liability accounts. For employer contribution, credits the configured expense account.

The system debits the bank account for the amount of each check, credits the displayed G/L distribution accounts, and updates the "Current liability" amounts in the Taxes windows.

Void Receipts

For all receipts, you enter a posting date for the void transaction and the receipt number. Customer receipts entered as deposits:








Other receipts entered as deposits:

The system debits the Receivables control account and the customer account for the amount of the voided receipt plus any discounts taken, and credits the Receivables discount account for the discounts taken. The system credits the deposits clearing account for the amount of the voided receipt, and then debits the clearing account and credits the bank account for the voided receipts (batch) total.

The system reverses entries to the accounts to which the receipt was distributed, credits the deposits clearing account for the amount of each voided receipt, and then debits the clearing account and credits the bank account for the voided receipts (batch) total.

Receipts entered as "Payment tendered" at the time you enter sales invoices:

The system debits the voided payment plus any discounts taken to the Receivables control account and the customer account, credits the Receivables discount account for discounts taken, and credits the voided payment to the Receivables cash receipts control account (for cash and check receipts) or the credit card account (for credit card receipts).

If you have already used the Deposits window to deposit cash or checks you received as payment tendered on an invoice, you also need to reverse the deposit. In Bank Accounts/Deposits or as an adjustment in Bank Accounts/Reconciliation, enter the voided receipt amount as a credit to the bank account and a debit to the Receivables cash receipts control account.

Transfers

You indicate the bank account from which funds are being transferred, the bank account to which funds are being transferred, and the amount of the transfer.

The amount of the transfer is credited to the "from" account and debited to the "to" account. The transfer amount appears as a withdrawal when you reconcile the bank account from which the funds were withdrawn. It appears as a deposit when you reconcile the bank account to which the funds were transferred.

Reconciliation

For adjustments, you enter the bank account ID, the amount of the adjustment, and the G/L account for the balancing entry. Enter debits (dividends or electronic fund transfers in, for example) to the bank account as positive amounts and enter credits (bank charges, EFTs out, for example) to the bank account as negative amounts.

The system debits or credits the bank account for the amount of the adjustment and debits or credits the G/L account you specify for the balancing entry.

Finance Charges

You apply finance charges to eligible customers.

The system calculates finance charges on the customer balance according to the customer’s finance charges configuration. The system debits the finance charge amount to the Receivables control account and the customer account and credits the FC amount to the finance charges account in the customer’s assigned control account set.

Recurring Charges

You apply recurring charges to eligible customers.

The system debits the Receivables control account and the customer account and credits the sales tax account(s). The system credits the income accounts specified in the configuration for each recurring charge.

Invoices

For normal customer invoices, you enter amounts for sales of product list items associated with income accounts, amounts to distribute to income accounts for sales of other items, and any purchase discounts. Depending on how your company is set up, you directly or indirectly enter tax amounts.

For After the Fact customer invoices, you enter sales amounts, distributions to income accounts, and any purchase discounts. Depending on how your company is set up, you directly or indirectly enter tax amounts.

For invoices that are paid or partially paid when you enter them, you enter invoice payment amounts (cash, check, credit card, unattached receipt, or unattached credit memo).

For account distribution of a return or credit memo, you enter entries with the opposite sign from those on an invoice or debit memo.

The system debits the Receivables control account and the customer account, debits the Receivables discount account, and credits the sales tax account(s). The system credits the income accounts specified indirectly through the Product List item or directly in the G/L distributions tab.

The system credits all payments to the Receivables control account and the customer account. The system debits cash payments to the Receivables cash receipts account and debits credit card payments to the credit card accounts. Any invoice amount still due is debited to the Receivables control account, the customer account, and the Receivables discount account and credited to the sales tax accounts. Credit applied to the sale from previous transactions (a credit memo, for example) has already been posted to the general ledger; its effect is to reduce the invoice amount debited to the Receivables control account and the customer account. For cash payments in full, there is no net effect on the Receivables control account and the customer account.

The system posts the entries with the opposite sense (credits become debits and vice versa) from those on an invoice or debit memo.

Invoice Updates

You void an invoice.

The system reverses the invoice’s entries to the Receivables control accounts, the customer’s account, and the G/L distribution accounts.

Vendor Invoices

For all purchases, you enter a purchase amount that you distribute to one or more expense accounts.

For cash purchases, you enter the amount of cash payment.

For manual check purchases, you enter the bank account, check number, and amount of check payment.

For account distribution of a credit memo, you make entries with the opposite sign from those on an invoice or debit memo.

The system credits the invoice total to the Payables control account and to the vendor account and debits the specified expense accounts.

The system debits the Payables control account and the vendor account for the amount of cash tendered and any discounts taken, credits the Payables cash purchases account for the cash tendered, and credits the Payables discount account for any discounts taken. For cash payments in full, there is no net effect on the Payables control account and the vendor account.

The system debits the Payables control account and the vendor account for the check total and any discounts taken, credits the checkbook account for the check total, and credits the Payables discount account for any discounts taken.

The system makes entries with the opposite sense (debits become credits and vice versa) from those on an invoice or debit memo.

Quick Checks

You enter a purchase amount that you distribute to one or more expense accounts. You enter a bank (checking) account ID and the payment amount.

You print and approve the check.

The system credits the invoice total to the Payables control account and to the vendor account, and debits the specified expense accounts.

The system debits the Payables control account and the vendor account for the check total and any discounts taken, credits the checkbook account for the check total, and credits the Payables discount account for any discounts taken.

Create Payments

You select for payment vendor invoices previously created with the Payables Vendor Invoices command.

You review check selection, print the checks, and approve printed checks.

The system temporarily stores the check information until you print and approve the checks.

The system debits the Payables control account and the vendor account for the check total and any discounts taken, credits the checkbook account for the check total, and credits the Payables discount account for any discounts taken.

Manual Payments

You enter manual checks for on-account payment of vendor invoices previously created with the Payables Vendor Invoices command. You enter the checkbook number, vendor ID, and amount of the check. You apply the payment to one or more open invoices.

The system debits the Payables control account and the vendor account for the check total and any discounts taken, credits the checkbook account for the check total, and credits the Payables discount account for any discounts taken.

Invoice Updates

You void an invoice.

The system reverses the invoice’s entries to the Payables control accounts, the vendor’s account, and the G/L distribution accounts.

Calculate Payroll

For normal payroll, you run payroll and print and approve paychecks.

For after-the-fact payroll, you enter and post checks.

The system debits the general ledger expense accounts for all income factors (which include salaries, wages, cash benefits, expense reimbursements, commissions, etc.) and for vacation and sick accrual amounts paid out.

For taxes (employee withholding and employer contribution), credits the configured liability accounts. For employer contribution, debits the configured expense account.

For deductions (employee deduction and employer contribution), credits the configured liability accounts. For employer contribution, debits the configured expense account.

Credits the payroll bank account configured for employee net pay.

Payroll departmentalized by G/L account segment

For departmentalized factors, the system substitutes the segment value(s) that correspond to the department name(s) you assign each employee for the department segment value in the factor's default account and posts the payroll factor for each employee to the accounts that are based on the employee's assigned departments.

Reviewing Timecard distributions

Using the manual pay distribution option or distributing earnings on Timecards

Timecard distribution can be viewed but not edited in the Calculate Payroll Distribution window, whether or not Payroll is configured to allow manual distribution.

The explicit G/L distribution accounts for the pay factors on Timecards in a given pay run override any explicit or implicit accounts that would result for distribution by any other method in Payroll configuration.

For manual pay or Timecard distribution, the system debits earnings for each employee to the accounts you specify in the proportions you specify in the distribution window (in Calculate Payroll or After the Fact Payroll) or on the Timecard. If you select the option to allow manual distribution of vacation and sick pay amounts (no Timecards), manual pay distribution includes those amounts in the distributable total earnings amount.

Employee Adjustments

You enter debits or credits as appropriate. Then debit or credit G/L accounts (expense, liability, bank, and so forth) as appropriate.

The system posts adjustments to the specified accounts. Also adjusts employee to-date earnings records.

Remittance Checks

You select remittance vendors for payment and verify that payment amounts and G/L distributions are correct and in balance.

The system credits the selected bank account for the amount of each check, debits the displayed G/L distribution accounts, and updates the "Current liability" amounts in the Taxes windows.