SECTION 188.8.131.52 - GENERAL LEDGER JOURNALS (REVERSING)
USAGE: To enter shift balances from one accounting period to another. Normally, HiFinance will not let you enter Journals in mixed periods. This is required, so that the Trial Balance will balance in each period. If, however, you wish to shift a balance to another accounting period, eg to apportion large bills to the date they are due rather than the date they were paid, you would have to enter a NORMAL JOURNAL (see SECTION 184.108.40.206) removing the balance from the current period and then enter another identical (but reversed) NORMAL JOURNAL in the new period. This is tedious and can lead to data entry errors. The REVERSING JOURNALS PROGRAM allows you to enter the first part, as if you were entering a NORMAL JORNAL, but you are also asked for the date of the revering entry. When you choose to update, HiFinance will update both the reversal and re-entry for you, at the appropriate dates.
Batch type systems, that require an end-of-month procedure would normally update the first half of the transaction and set a flag to update the second half (the reversal) when the end-of-month is run. Because HiFinance is an “instant update” system, with no formal end-of-month procedure, the whole transaction proceeds immediately. So, a two line reversing journal would automatically generate all four transactions, at once.
DISCUSSION: When you start the REVERSING JOURNALS program, the computer will initially ask:
POST JOURNALS FROM [13/04/2011] APRIL 2011
This is the date you wish to apply the journal. Enter a valid date and press <Enter> or <F10>.
Next you will be asked:
TO [13/03/2011] MARCH 2011
This is the date you wish to reverse to. The date must also be a valid date and must be in a different accounting period to the first date. Neither date may be in Last-Year (as these periods are always closed).
The procedure for entering transactions is the same as NORMAL JOURNAL (see SECTION 220.127.116.11) except that no dates are asked for, because you have already entered it, above.
As with NORMAL JOURNALS, you cannot exit the sequence until the total of the journal is zero.
At each point you may press <ESC> to abort the line or the whole transaction.
If you have entered at least one line of a dissected transaction, you may press <F5> (at the ACCOUNT field) to enter the REVIEW function. This function allows you to view your entries, and if necessary change or delete a line. To move between lines use <CsrUp>, <CsrDn>, <PgUp>, <PageDn>, <Home> and <End>. If there are a particularly large number of lines, you can also use <F9> to go to a specific line number. To modify a line, make sure it is displayed in full in the bottom window and press <F3>. You can then re-enter any of the details. To leave the REVIEW function, press <ESC> or <F10>, once.
To finally update your transaction, press <F10>. <F10> will not be available unless there is at least one line entered and the BALANCE is zero.
Files updated by the General Ledger Journal program:
General Ledger master-file: Each account balance is updated in the chosen period with the value of each line.
General Ledger transaction-file: A transaction is posted for each transaction line with the POST JOURNALS FROM date.
Then the whole process is repeated with exactly the reversed values applied to the same accounts at the TO date, effectively shifting balances from the FROM period to the TO period.