Journal Entries

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 to General Ledger (GL) accounts.

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

Automatic journal entries are logged when client 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 client account transaction.

Manual journal entries

To enter a manual journal entry:

1. On the main menu, go to Accounting > Journal Entries.
2. On the right-hand side of the screen, select New Journal Entry.

3. Fill in the following information:

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 your Chart of Accounts so that you can choose the right one.

Credit: enter the amount to be credited to the account and choose the correspondent account in the next field.

Branch: for both credit and debit, you can select a branch. If you leave this field blank, transactions will not be associated with a branch. If you are already filtering to view a specific branch, the journal entry is automatically set to that branch.

Booking Date (Entry Date): will be the current date by default, although you can backdate the journal entry, if the transaction was actually made previously.

Notes: enter any comments you want to have associated with the transaction. Notes are mandatory when posting or reversing manual journal entries.

Attach File: you can also attach up to five files to the manual journal entries, such as documents related to the amount needed for later audit or investigations. You must have the permission to manage documents in order for this option to be available. For more information, see Permissions - Documents.

4. Select Log Journal Entry and the new journal entry will be added to your list of journal entries.

If you want to log several consecutive manual journal entries, select 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. If you need to log "many-to-many" accounts journal entries, select the green plus sign, which will add another account to be either debited or credited. Keep adding as many as you need.

Accounting in multicurrency

You can post manual journal entries in a currency other than the base currency. The manual journal entry will use the accounting rate available at 00:00:00. Manual journal entries have only date stamps.

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 client account.

The deposit account transactions that generate automatic journal entries 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)

The loan accounts transactions that generate automatic journal entries 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)

Entry ID vs Transaction ID

Entry IDs refer to journal entry IDs. For example, when you enter a repayment, the repayment transaction will generate two journal entries—debit and credit—with the same transaction ID but with two different entry IDs, which are globally unique for journal entries.

Transaction IDs refer to a withdrawal, a repayment, a fee applied, and so on. They are used to cross-reference them with the transaction on the loan or deposit account.

Reversing journal entries

You can only reverse manual journal entries.
If a journal entry is logged by mistake and needs to be reversed:

1. Find the journal entry using the appropriate filters.
2. Select the reversal icon next to the journal entry.
3. Confirm.

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.

Listing and reporting journal entries

Similar to clients 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. For more information on setting and editing presets, see Customizing Columns.

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 and so on) or by any detail related to the transaction associated with it.