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About journal entries

Journal entries are used to make transfers between nominal accounts. They follow double-entry bookkeeping principles. The journalA record that holds one or more transactions for posting. Synonymous with batch in batch processing. must balance (debit and credit amounts must equal) before it can be posted. If not, you cannot complete the postings. Journal entries are always entered in a batch. A journal can be held for authorisation, if required.

The ledger applies a URNThe unique reference number assigned to a complete transaction to assist in tracing the progress of the transaction through Sage 200. This number is 12 digits long and comprises of: 3 digits for the user number, 2 digits for the source module in which the transaction was created, and a 7 digit sequential reference number. (unique reference number) to each journal. You can use the URN to find out information about the journal such as, who created it, and the entries involved.

You can use journal templates to create a library of journals. This is useful when you have regular postings that can be incorporated into a journal as required.

You can also enter a taxable journal that will update your VAT Return as well as the nominal accounts. Taxable journals are usually required for special VAT schemes or to process fuel scale charges.

Note: A nominal taxable journal should not be used to replace the usual invoice, credit note and taxable payment or receipt routines found in other modules.

When you post a journal, if you have set the ledger to update journals on posting (Update the Nominal Ledger immediately journal entries are posted) then the entries immediately affect the account balances, provided they are for an open period. If you have decided not to activate this setting, then the entries are held in the waiting postings file to be updated later using the Update Waiting Postings option.

Note: You cannot post journal entries to a nominal account that is set to reject manual journal entries (the Allow manual journal entries setting is not activated on the account).

When entering journals you can do the following:

When making journal transfers that require analysis by cost centres and/or departments, you can assign a nominal code with a cost centre and/or department code for each transaction line of the journal.

You can set up a journal template, when using journal entries, to distribute an expense across cost centre or department codes.

Note: If you include a memorandum account in the journal, the value of the posting to the memorandum account is not included in the batch totals.


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