Setup for Journal Entries

This FYI describes the fields in the journal entry setup screen. It also shows examples of the ten most common journal entry type's setup.

Overview

Journal Entry (JE) Setup is important because it tells the system about the different kinds of JEs that you will create. The typical JE types are:

In the setup record, you may assign each type of JE a different JE numbering scheme, although it is optional. In addition, you'll tell the system whether or not to assign a JE number upon posting or simply upon entry, as well as whether an "out of balance" JE can be saved (not posted).

Special Considerations

After we describe each of the fields in the form, we will point out some elements of the setup that you should consider before implementing.

Journal Entry Setup Examples

Escape provides you with a few "standard" journal entry types that we believe most customers will use, such as general ledger, expenditure, encumbrances, etc. These are by no means the only journal entry types that you will want to set up. In addition, the "way" they are set up is meant to give you a start and they can be changed to meet the needs of your organization.

Specific Field Descriptions

The following are specific field descriptions of the fields that appear in the Journal Entry Setup record:

Record Keeping for These Journal Entries Section

How this Journal Entry Works

Special Considerations

Journal Entry Sequence Approach

In the Journal Entry Setup Record, you have the ability to specify a different JE numbering sequence for each type you create. There are two schools of thought on this issue. One is that all JEs, regardless of type will be numbered using the same sequence. So, an appropriation transfer and a PO encumbrance would use the same numbering sequence. The other is that each JE type be given its own numbering sequence. This decision is completely up to you. However, let's review some of the advantages to creating unique numbering sequences for each JE type:

Adding Journal Entry Types to Menus

After adding the journal entry types and sequences, you're ready to add these to the menus, using the Escape Screen Tool, ETMENU. For details on how to do this, please see the Escape System Manager's Guide.

Tip: For manually entered journal entries, you should consider turning on the Automatically Balance JE feature. This feature will automatically balance the journal entry.

Autobalancing Journal Entries

If Automatically Balance JE flag is on and a user creates a JE but saves it before completing the detail, Escape automatically marks the details lines that were added by the system to balance the JE. When the user calls up the JE again to edit it, they can continue to add lines. When they save again or post, Escape analyzes the JE again and adds or removes detail lines as appropriate. Escape may also adjust the dollar amounts of the offsetting accounts (manually or system entered) to balance the JE.

If the user creates a JE before creating the offsetting accounts needed for balancing the JE, Escape will set the out of balance JE flag to a "Y". This will keep the journal from posting. The user can then create the necessary accounts and edit the JE again to post.

The user should never enter a cash account manually in a journal entry that is "auto balanced." If you need to have a journal entry with manual entries to cash, you will need a JE type that does not have this flag set.

Guidelines for Specific Journal Entry Types

The following pop-down links give you detailed information about how to setup up specific types of journal entries.

Budget Adoption JE Setup

Budget Revision JE Setup

Encumbrances JE Setup

Expenditures JE Setup

Expenditure Transfer JE Setup

General Ledger JE Setup

Salary Encumbrance JE Setup

Starting Balance JE Setup

Warehouse Expenditure JE Setup

Year End Closing JE Setup