Tag Archives: journal

Journals

Journal; the book of original entry.

The computerised accounting system has eliminated most of the tedious double-entry work. Gone are the days where the bookkeeper requires to prepare the sales and purchase journals, and update the sub-ledgers and ledgers, etc. 

Although accounting processes have simplified, the general journal is available for the accountant to adjust the book. The accountant may use a general journal to reduce the net book value of the fixed assets or to reclassifying from one account to another, etc. during the month-end or year-end closing. 

General Journal

Besides the general journal, MoneyWorks also have stock journals cater to the user to adjust the stock quantity and value on hand. The stock journals available are:

  • Make Journal
  • Break Journal
  • Writeoff Journal
  • Create Journal
  • Revalue Journal
  • Transfer Journal

Make and Break Journals.

Use a Make Journal for assembly items and a Break Journal for disassembling.

Stock Journal

A Make Journal created automatically with today’s date when you hit the build an assembly item button on the Items list; it shows the quantity built and the parts used for the assembly.

You may consider using the Make Journal instead of clicking the build button to have an assembly item built with a specific date of your choice. Sometimes, you may use a Make Journal when there is a slight difference in the component. Instead of amending the BOM (Bill of Materials) within an assembly item, a journal is better if it is a one-off order.

A Break Journal, on the other hand, is to disassemble a finished product. You cannot undo or cancel a Make Journal, but you can consider using a Break Journal to reverse the wrongly built item.

The second-hand dealer uses the Break Journal to strip down old machinery into multiple usable parts. Old parts are often recycled to the workshop to service out-of-date machinery. And, the scrap metal obtained is a big business to some.

Writeoff and Create Journals.

A Writeoff or a Create Journal recorded when you committed a stocktake. It will show as a Create Journal when there is an increase in stock quantity on hand. The Writeoff Journal, on the other hand, capture the decrease in stock.

You may, occasionally, use the Writeoff Journal or a Create Journal to adjust the stock on hand quantity instead of a full stocktake if the adjustment affects only a few products.

A stock journal is still a journal, which requires a double-entry to balance. You have to specify the expense account in the contra account field given. It debits or credits the inventory assets account and credits or debits the expense account when the stock journal posted.

Revalue Journal.

You use a revalue journal when there is a revaluation to the old or obsoleted inventory. Of course, stock revaluation is very subjective and depending on the company or audit policy. 

Transfer Journal.

Transfer Journal, as the name suggested, is to transfer the product from one place to another. This feature comes in handy when you have multiple warehouses. The product cost and quantity moved when the journal posted.

You cannot cancel a Journal transaction, but you can duplicate and reverse the journal, or change the stock journal type after duplicate.

Import journals into accounting software

Software: MoneyWorks accounting software

You need to have type, date, reference, account, description, and amount field in the spreadsheet when preparing an import file for journal transaction.

For journal transaction, use “Jn” for type field. You can either have the type field in the spreadsheet or preset it in the import MAP. The Date is the date of the journal transaction, which you can either have it in the import file or set it in the import MAP as the date of import.

The account field captured the account code, which has to be the same code you used in MoneyWorks. You do not need to have the account name as it will pick up from the system automatically. The journal memo map to the description field of the detail line and the amount field contains both debit and credit value (with a negative for credit).

Import Journal into accounting software

Import the file from the File menu once you have prepared the spreadsheet. Alternatively, you can save the import MAP if you require to import frequently.

Besides importing journals, you can also import transaction such as Invoices, order, payment or receipt transactions. MoneyWorks is a powerful system which helps an accountant ease the daily accounting task. Book a demo today to find out more about how MoneyWorks helps in managing your business finance.

The Create Journal

Software: MoneyWorks accounting software

Create Journal is a stock related journal in MoneyWorks accounting system, which uses to increase the stock quantity such as manufactured or the existing product. For example, you discovered that Product_123 has ten pieces instead of nine, you may use a Create Journal to increase the stock on hand of Product_123 instead of a full stocktake process. Use a relevant Cost of Sales or Expense account as a contra account if you are using a Create Journal instead of inventory assembly feature to increase the stock on hand of the manufactured product.

Create journal

Change the contra account to SETUP if you are using the Create Journal instead of a stocktake to record the ‘opening stock’. The SETUP account is an account used in MoneyWorks to store all the opening balances of your file.

MoneyWorks is a powerful accounting system at an affordable price. Download a trial to test drive or sign up a free demo to find out how MoneyWorks works for your business.