Journal Entries
  • 14 Sep 2022
  • 5 Minutes To Read
  • Dark
    Light
  • PDF

Journal Entries

  • Dark
    Light
  • PDF

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 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.

New Journal Entry view - Manual JE screen with fields like Debit/Credit, GL Account, Branch, Booking Date and Notes. The buttons found are Attach File, Cancel and Log Journal Entry.

  1. 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 you 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 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.

Booking Date (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.

Notes: enter any comments you want to have associated with the transaction.

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

  1. After entering the information above, click Log Journal Entry and the new journal entry will be added to your list of Journal Entries.
Please Note
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.
Please Note
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.
Please be Aware
Notes are mandatory when posting or reversing manual Journal Entries.

Accounting in Multicurrency

Early Access Feature
If you would like to request early access to this feature, please get in touch with your Mambu Customer Success Manager to discuss your requirements. For more information, see Mambu Release Cycle - Feature Release Status.

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 (manual Journal Entries have only date stamps).
Screen Shot 2021-02-08 at 8.09.00 AM.png


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.

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)
Please Note
In the case of automatically generated Journal Entries (based on transactions entered in client accounts), the Journal Entry date will always be the same as the client 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.

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.

Please Note

If you make a manual journal entry, a single transaction ID will be created for that set of journal entries which is not related to any client account transaction. Each individual entry will have its own entry ID.

Please be Aware

Transaction IDs are independently generated for loans and deposits. It is therefore possible to have the same transaction ID for a deposit transaction in a deposit account and an existing repayment transaction in a loan account.


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 (the account that was initially debited will be credited and the other way around).

Plase be Aware
You can only reverse Manual Journal Entries.
Please Note
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. If you need to reverse a journal entry that was posted automatically for a client account transaction, you need to reverse the original client transaction.

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. 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 etc) or by any detail related to the transaction associated with it.


Was this article helpful?