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Journal Entries

Last Updated: May 10, 2016 04:11PM CEST

 

Overview

Manual Journal Entries

Automatic Journal Entries

Entry ID vs Transaction ID

Reverting Journal Entries

Listing/ Reporting Journal Entries

 

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Overview

Journal Entries are the logs of all the transactions in your organization which have accounting implications.

Client account transactions will be logged automatically by Mambu after you link your products with GL Accounts.

Other transactions will need to be entered manually such as payroll or asset depreciation, for example.

Automatic journal entries are logged when customer transactions are posted, allowing you to generate accounting reports on real time data. To make the audit process easier, the journal entries are also linked to the correspondent customer account transaction.

 

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Manual Journal Entries

To enter a manual Journal Entry go to Accounting > click on Journal Entries > New Journal Entry



 

The following fields need to be completed with information about the new Journal Entry:

  • In Debit enter the amount to be debited to the account and the account number or name in the next field. As you start typing, you'll see the list of matching accounts in you Chart of Accounts so that you can choose the right one. 
  • In Credit enter the amount to be credited to the account and choose the correspondent account in the other field. 
  • Branch For both Credit and Debit options you can select a branch, if you leave this blank transactions will not be associated with a branch. If already filtering to view a specific branch the journal entry is automatically set to that branch.
  • Entry Date will be the current date by default, although you can back-date the Journal Entry, in case the transaction was actually made previously.
  • In Notes enter any comments you want to have associated with the transaction.
You can also attach up to 5 files to the manual Journal Entries, for example documents related to the amount needed for later audit or investigations.

After entering the information above click Log Journal Entry and it will be added to your list of Journal Entries.

 Mambu will validate that total Debit amounts are equal to total Credit amounts. If they are not, the Journal Entry cannot be saved and you will receive an error message.

 Notes are mandatory when posting or reversing manual Journal Entries.

 In case you want to log several consecutive Manual Journal Entries you can tick the “Create Another” checkbox and after the completion of the first Manual Journal Entry the window will remain open so you can log the next one 

 In case you need to log "many-to-many" accounts Journal Entries, you can click on the green "+" sign, which will add another account to be either Debited or Credited. You can add as many as needed.
 

 

 

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Automatic Journal Entries

After you link your products to GL Accounts by defining the Product Rules, Mambu will automatically log corresponding Journal Entries for each transaction posted in a customer account.

 

Deposit account transactions that will generate an automatic Journal Entry are:

  • Deposits
  • Deposit Adjustments (Reversals)
  • Withdrawals
  • Withdrawal Adjustments (Reversals)
  • Transfer
  • Transfer Adjustments (Reversals)
  • Fee Applied
  • Fees Adjustments (Reversals)
  • Interest Applied
  • Interest Applied Adjustments (Reversals)
  • Write-Off
  • Write-Off Adjustments (Reversals)

 

Loan accounts transactions that will generate an automatic Journal Entry are:

  • Disbursements
  • Disbursement Adjustments (Reversals)
  • Repayments
  • Repayment Adjustments (Reversals)
  • Interest Applied
  • Interest Applied Adjustments (Reversals)
  • Penalty Applied
  • Penalty Applied Adjustments (Reversals)
  • Fees Applied
  • Fees Applied Adjustments (Reversals)
  • Rescheduling
  • Write-Off
  • Write-Off Adjustments (Reversals)

 

In the case of automatically generated Journal Entries (based on transactions entered in customer accounts), the Journal Entry date will always be the same as the customer transaction's Entry Date. For example, if you back-date a repayment to 3 days ago, the corresponding Journal Entry will also be back dated to 3 days ago.

 

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Entry ID vs Transaction ID

The Entry ID is the Journal Entries' ID whereas the Transaction ID is cross-referencing it with the transaction on the loan/savings account.

So when you enter a repayment, for instance, it will generate two journal entries - debit and credit - with the same Transaction ID (of the repayment transaction) but with different Entry IDs, which are globally unique for journal entries.

If you make a manual journal entry, then one 'Transaction' ID will be created for that set of journal entries (which is not related to any client account transaction) and each individual entry will have its own Entry ID.

 

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Reversing Journal Entries

If a journal entry is logged by mistake and it needs to be reversed, find the journal entry using the appropriate filters > click on the reversal icon next to the journal entry  > Confirm the reversal. 

You can also add a comment on the reversal reason - the Notes field is mandatory and needs to be filled out in order for the journal entry to be reversed.

A Journal Entry is reversed by posting a new Journal Entry of the opposite nature (the account that was initially debited will be credited and the other way around).

 

 If you reversed a Journal Entry by mistake, you will need to reverse the new reversal entry, so that the account debits and credits will go back to the original state.
 

 You can only reverse manual journal entries. If you need to reverse a journal entry that was posted automatically for a customer account transaction, you need to reverse the original customer transaction.

 

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Listing / Reporting Journal Entries

Similar to client or accounts Custom Views, you can configure the columns visible in the Journal Entries view and define several "presets" that include different columns depending on the reporting needs.

Columns 

Include information about the Journal Entries (such as the ID, Creation Date, Debit and Credit), but can also contain information from the Client, Group or Account associated with the Journal Entry.

Filters

Mambu allows you to filter journal entries based on a various number of constraints. You can filter by any journal entry specific details (entry ID, date, branch GL Account, amount etc) or by any detail related to the transaction associated with it.

 
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