Enter Transactions screen - Journal Entries

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Use Journal entry transactions to record journal entries for your client. You can enter journal entry transactions in the General journal or in any of journals that were set up in the Setup > Journals screen. Note that you must distribute the journal entry so that the sum of the distribution amounts equals zero.

When you create a journal entry, you must also select a journal entry subtype. Note that the Tax Adjustment, Reclassifying, Other, and Potential subtypes will impact only the balance types for which they are included. Use the Balance Definitions dialog to specify which journal entry subtypes to include in the calculation of each balance type.

  • Adjusting – to post entries to unadjusted balances so that they become part of the adjusted trial balance, to correct an error in recorded sales, or to set up prepaid expenses.

    For example, to record depreciation on a vehicle for the year.

  • Eliminating – to calculate adjusted balances for the client in a consolidated master client, similar to an Adjusting journal entry for a regular client.
  • Other – to prepare financial statements on another comprehensive basis of accounting to combine with the adjusting trial balance to create the other basis trial balance.

    For example, to record special state tax adjustments.

  • Potential – to record journal entries that may be needed at a later date. Potential journal entries can easily be converted to any other journal entry type.
  • Reclassifying – to change the classification for financial statement purposes. Many firms use reclassifying journal entries to move amounts from one GL account to another. However, in Accounting CS, you can use it for any purpose. By default, reclassifying journal entries affect only the Report, Tax, and Other balance. But you can change this in the Setup > Balance Definitions dialog.

    For example, to move a portion of long-term debt (a long-term liability) at the end of the year to the current portion of long-term debt (a current liability that must be paid within the next year).

  • Regular
  • Tax Adjustment – to modify the presentation of account balances to comply with taxing authority regulations. The tax adjustment subtype does not flow to the General Ledger and does not carry forward from one period to the next. The adjusted balance is carried forward each period and becomes the unadjusted balance for the next period. Example

    Period 1 account balances for an account: Unadjusted–10; Adjusted–30; Tax–50

    Period 2 account balances for an account: Unadjusted–30; Adjusted–30; Tax–30

Note that UltraTax CS will not import journal entries with Other or Potential subtypes, and if you choose to import Adjusted Trial Balances during import, UltraTax CS will not import journal entries with Reclassifying subtypes.

Choose Actions > Enter Transactions, select Journal entry from the Type drop-down list.

Tabbed pages in this screen

Distribute the journal entry to one or more accounts. The sum of the distribution amounts must equal zero.

Note that if you select a GL account that is associated with a bank account, the application will automatically create a corresponding proxy transaction.

Enter miscellaneous information about the journal entry that may be helpful when you are reviewing journal entry transactions. If you enter any information in this tab, the application displays an icon in the Notes Note icon column for the transaction.

This tab displays the date and time that the selected journal entry was added and includes the ID and name of the staff person who added it.

Fields & buttons

If you set up a transaction template for this type of journal entry, you can select that template from the drop-down list to have the application enter the default information that is included in the template. You can override any of the default information, as necessary.

Enter a reference for the journal entry.

Enter the journal entry date.

Enter a description for this journal entry.

For Adjusting, Other, Potential, Reclassifying, and Tax adjustment journal entries, enter a workpaper reference for this journal entry.

For Other, Reclassifying, and Tax adjustment journal entries, select the applicable difference type (permanent or temporary).

For Potential journal entries, select the applicable misstatement type (Known or Projected classification or misstatement).

Mark this checkbox to have the application reverse the journal entry when advancing to the next posting period.

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