Warning
Product support for the ended on September 30, 2020.
- Write Up CS
- Payroll CS
- Engagement CS
- Client Bookkeeping Solution
- Financial Analysis CS
Help & How-To Center content for the Creative Solutions Accounting platform may be outdated and is used at your own risk.
Use the Adjusting Journal Entries window to add or edit adjusting journal entries in the trial balance journal.
Choose Adjusting Journal Entries from the Tasks menu, or click the Adjusting Journal Entries icon on the shortcut bar.
Note: The Adjusting Journal Entries Detail version allows additional information to be included in your adjustment entries. The expanded window has two extra columns within the AJE Detail grid to enter a description and Workpaper reference for each distribution. To turn this option on, choose Edit > Options when the Adjusting Journal Entries window is active, and then mark the Enter multiple descriptions and WP references for journal entries checkbox.
Special information
Fields & buttons
Lists the transactions already entered for this client in the Trial Balance journal.
- To edit an existing transaction, highlight it and then click the Edit button.
- To delete an existing transaction, highlight the transaction and click the Delete button. You will be prompted to confirm the deletion.
Enter the reference, date, and description for the journal entry.
- Reference (required field)
Enter a reference of up to 9 alphanumeric characters. You can add an optional decimal point and up to 7 characters after the decimal provided that the total number of characters including the decimal is no greater than 9.
Note: If both a GL and Trial Balance CS client, keep in mind that reference numbers of 100 or greater are reserved for checks (unless specified otherwise in the General Ledger tab of the File > Client Properties dialog).
- Date
Enter the date of the transaction in MMDDYY format. If you selected one of the date field options in the Adjusting Journal Entries Options dialog, the program will enter all or part of a date for you.
- Description
Enter a short description (up to 120 characters) in this field. If you selected one of the description field options in the Adjusting Journal Entries Options dialog, the program will enter a description automatically.
Enter the account and amount in the appropriate columns.
- Account (required field)
Enter the account number or choose it from the drop-down list. (In Edit mode, the description of the highlighted account is shown just below this grid, or the first account if there are none currently highlighted.)
- Tax Code (This is a required field when the Entry Type Tax Adjustment-Tax Code is selected.)
Enter the Tax Code or choose it from the drop-down list. (In Edit mode, the description of the highlighted tax code is shown just below this grid, or the first tax code if there are none currently highlighted.) .
- Valid Tax Codes: All valid, three-digit tax codes for the selected client's business type (1120, 1120S or 1065) are available in the drop-down list for the Tax Code field. Additional valid entries are as follows:
- Manually enter 1 or 2 prefix digits in the Tax Code field (xxxx or xxxxx) to designate the input screen location for multiple-unit entities. For example, assume you are transferring a farm's utilities expense amount to the UltraTax CS Farm input screen. If the proper tax code number for the first unit's utilities is 1632, you would transfer the second unit's utility amount with a tax code number of 2632.
- Manually enter five 8s (88888) as the memo tax code to balance the adjusting journal entry to a tax code that affects the tax net income. This code enables you to print the account in the Tax Code Report and does not transfer to the following tax products: UltraTax CS, ProSystem fx, or Lacerte.
- Manually enter five 9s (99999) as the memo tax code to balance the adjusting journal entry to a tax code that does not affect the tax net income. This code does not print on the Tax Code Report or transfer to the following tax products: UltraTax CS, ProSystem fx, or Lacerte.
- See also: Adjusting journal entries by tax code (examples)
Descriptions for tax codes that are greater than 3 digits default to the base tax (3 digit) code. For example, when the 1120 entry is used and 1100 is entered as a tax code, the description for it is Gross Receipts, which is the base tax code (Tax Code 100). Note that invalid tax codes are highlighted in red.
- Amount (required field)
Enter the positive or negative amount. Enter the decimal manually unless you have selected the Implied decimal on amounts option in the Setup > User Preferences dialog. The program automatically enters a balancing amount on the subsequent line.
Note: To expand this grid and enter additional information, select Options from the Edit menu or from the F3 or right-click context menu and mark the Enter multiple descriptions and WP references for journal entries checkbox.
Choose a journal entry type from the available options.
- Adjusting
Posts entries to unadjusted balances so they become a part of the adjusted trial balance.
- Tax Adjustment
Modifies the presentation of account balances to comply with taxing authority regulations.
- Reclassifying
Not normally entered into the books and used for financial statement purposes.
- Potential
Entries that need to be recorded at a later date. A potential journal entry can easily be converted to any other type of journal entry.
- Other
If preparing a financial statement on another comprehensive basis of accounting, other journal entries combine with the adjusting trial balance to create the other basis trial balance.
- Budget
A budget journal entry affects only adjusted budget balances. The adjusted budget type cannot be modified to include other entry types.
- Tax Adjustment-Tax Code
Used to post an adjusting journal entry to a specific tax code. This option is available only for clients whose entry type is: 1120, 1120S, or 1065. Note that when this option is selected, the first column in the Journal Entry Detail grid changes from Account to Tax Code.
Notes
- When the entry type is changed to Tax Adjustment-Tax Code from a different entry type, and there are currently accounts entered in the Account column of the Journal Entry Detail grid, you are prompted to clear existing accounts. (Click Yes to clear all accounts from the Accounts column and change the column type to Tax Code, or No to leave the entry type unchanged.)
- When the entry type is changed from Tax Adjustment-Tax Code to a different entry type, and there are currently tax codes entered in the Tax Code column of the Journal Entry Detail grid, you are prompted to clear existing tax codes. (Click Yes to clear all tax codes from the Tax Code column and change the column type to Account, or No to leave the entry type unchanged.)
- Eliminating
Used to eliminate balances between subsidiary clients for consolidation purposes. Eliminating entries are only available when consolidating clients are using account balances only. Note that for Engagement CS users, the Eliminating entry type is available only to those who have access to the trial balance or when the Add all journal entry types privilege is marked on the Engagements tab of the Group Privileges dialog (accessed from the Setup > System Configuration > Administration > Groups tab) for the group in which they are assigned.
Choose a journal entry type from the available options.
- None (default)
- Recurring
The same entry will be repeated in each period until it is deleted. The transaction will appear as a recurring type with the period end date as the transaction date.
- Recurring Template
Functions in the same manner as a Recurring journal entry, but the entry will appear with no amount each period and you will be prompted to fill in amounts.
- Reversing
The exact opposite of the transaction that you enter in this period will be made in the next period. The reversing transaction will use the period end date as the transaction date and the reference will have a .1 added to it. Note that this type is only available when the Adjusting entry type is selected.
Reversing, recurring, and recurring template journal entries are available for selection only if you are currently in the latest GL processing period. The special type selection cannot be changed once it is saved to something other than None.
Schedule M-3 mapping is provided by the M-3 tax code assignment from the Chart of Accounts > Edit Schedule M-3 Tax Codes dialog.
For a Trial Balance CS client, further Schedule M-3 code mapping is provided when Tax Adjustment type adjusting journal entries are entered and posted. The Tax Adjustment transactions can be flagged as either permanent (default selection even if the adjustment does not affect a GL account coded with an M-3 tax code) or temporary.
- Tax Adjustment AJEs flagged as temporary are mapped to Schedule M-3, Column B.
- Tax Adjustment AJEs flagged as permanent are mapped to Schedule M-3, Column C.
This field is only available for a potential journal entry type.
Choose the type of potential journal entry by selecting it from the F4 drop-down list:
- Known Classification
- Known Misstatement
- Projected Classification
- Projected Misstatement
This field is only available for a 1120, 1120S, or 1065 client when the entry type of Tax Adjustment-Tax code is selected.
Choose to Include or Exclude journal entries by tax code in the following export files.
- UltraTax CS
- GoSystem Tax RS
- Lacerte
- ProSystem fx
Note: This option provides you with the ability to reconcile journal entries with the taxable income on a tax return based on the tax balances in CSA.
Enter a workpaper reference of up to 10 alphanumeric characters to supply an audit trail and represent where the journal entry originated. The workpaper reference will print on the Adjusting Journal Entry report.
Displays the effect of this current entry on the client's net income.