Journal Entries
What You’ll Learn
In this module, you’ll explore journal entries - the behind-the-scenes records that track every financial transaction. You’ll see how most entries happen automatically, and how to make manual adjustments when needed.
Before You Begin: Key Terms Explained
| Term | What It Means |
|---|---|
| Journal Entry | A record of a financial transaction showing debits and credits |
| Debit | Left side of an entry - increases assets/expenses, decreases liabilities/income |
| Credit | Right side of an entry - decreases assets/expenses, increases liabilities/income |
| Auto Journal | Entry created automatically when you post an invoice, payment, etc. |
| Manual Journal | Entry created by hand for adjustments, corrections, accruals |
| Month 13 | Special period for year-end adjustments (auditor corrections) |
Understanding Debits and Credits (The Simple Version)
| Transaction Type | What Gets Debited | What Gets Credited |
|---|---|---|
| Customer pays you | Bank (goes up) | Accounts Receivable (goes down) |
| You pay supplier | Accounts Payable (goes down) | Bank (goes down) |
| Record expense | Expense account | Bank or AP |
| Record income | Bank or AR | Income account |
Why This Module Matters
Journals are the core accounting record - they:
- Create an audit trail of every transaction
- Ensure books balance (debits = credits)
- Allow corrections without deleting original entries
- Support month-end and year-end processes
Test Scenario 1: View Auto-Generated Journals
Objective: See how journals are created automatically from transactions
Time: 3 minutes
Step-by-Step Instructions
Navigate to: Finance → Ledger and Journal → Journal Transaction
Search for recent journals (leave filters blank, click Search)
Click on any journal entry to view details
What to Look For
When you view an auto-generated journal (e.g., from a sales invoice):
| Line | Account | Debit | Credit |
|---|---|---|---|
| 1 | Accounts Receivable | RM 5,300 | |
| 2 | Revenue | RM 5,000 | |
| 3 | SST Payable | RM 300 |
Notice:
- Total Debits = Total Credits (the entry is “balanced”)
- Source Document link takes you back to the original invoice
- Auto-Created badge shows it wasn’t manual
Test Scenario 2: Create a Manual Journal Entry
Objective: Make a manual adjustment entry
Time: 5 minutes
When You’d Do This
- Month-end accruals (expenses incurred but not yet invoiced)
- Corrections to previously posted entries
- Cost allocations between departments
- Year-end adjustments (Month 13)
Step-by-Step Instructions
Navigate to: Finance → Ledger and Journal → Journal Transaction → New
Fill in the header:
Field Example Reference ADJ-2025-001 Description Monthly rental accrual Period Current month Add journal lines:
Account Description Debit Credit 5100 (Rental Expense) Dec rental accrual RM 10,000 2300 (Accrued Expenses) Dec rental accrual RM 10,000 Verify: The totals must balance (Debit = Credit)
Save and Post
What to Notice
- System validates that debits equal credits
- You can add as many lines as needed
- Approval workflow may be required
- Audit trail records who created it and when
Test Scenario 3: Month 13 (Year-End) Journals
Objective: Understand how year-end adjustments work
Time: 3 minutes
What is Month 13?
Government accounting allows a special Period 13 after the fiscal year ends for:
- Auditor adjustments
- Corrections discovered after year-end
- Reclassifications
Step-by-Step Instructions
Navigate to: Finance → Ledger and Journal → Journal Transaction → New
In the Period dropdown, look for Period 13 (Year-End)
Observe that Period 13 is available but may require special permission
What to Verify
- Period 13 exists in the system
- Only authorized users can post to it
- Period 13 entries affect the previous year’s financial statements
Test Scenario 4: Reverse a Journal Entry
Objective: See how to correct a posted journal
Time: 3 minutes
Why Reverse Instead of Delete?
In accounting, you never delete transactions because:
- Audit trail must be complete
- Regulators require full history
- Errors should be visible and corrected, not hidden
Step-by-Step Instructions
Navigate to: Finance → Ledger and Journal → Journal Transaction
Find the journal you want to reverse
Click “Void (Reverse)”
Confirm the reversal
What Happens
- Original journal stays in the system (marked as “Reversed”)
- New journal is created with opposite entries
- Net effect on balances is zero
- Audit trail shows both transactions
Test Scenario 5: Import Journals from Excel
Objective: See how to bulk-load journals
Time: 3 minutes
When You’d Do This
- Importing data from another system (e.g., payroll)
- Bulk adjustments at month-end
- Migration of historical data
Step-by-Step Instructions
Navigate to: Finance → Ledger and Journal → Import Journal
Download the template
Review the template structure:
Column Description COMPANY_CODE Company identifier REFERENCE Journal reference GL_CODE Account code DEBIT Debit amount CREDIT Credit amount DESCRIPTION Line description Observe the import process:
- Upload your filled template
- System validates all rows
- Valid rows are posted
- Error report shows any issues
Your Progress Checklist
Mark off what you’ve completed:
| Scenario | Status |
|---|---|
| 1. Viewed auto-generated journals | ⬜ |
| 2. Created a manual journal entry | ⬜ |
| 3. Explored Month 13 journals | ⬜ |
| 4. Saw how to reverse a journal | ⬜ |
| 5. Reviewed journal import process | ⬜ |
Key Takeaways
After completing this module, you’ve seen that BigLedger:
| UTM Requirement | How BigLedger Meets It |
|---|---|
| 9.21 Auto Journal | Automatic entries from all modules (AR, AP, etc.) |
| 9.21b External Integration | Import from HR, payroll, research systems |
| 9.22 Manual Journal | Flexible entry for adjustments and corrections |
| 9.22a Period 13 | Year-end adjustment period supported |
Quick Reference: Navigation
| What You Want to Do | Where to Find It |
|---|---|
| View all journals | Finance → Ledger and Journal → Journal Transaction |
| Create manual journal | Finance → Ledger and Journal → Journal Transaction → New |
| Import journals | Finance → Ledger and Journal → Import Journal |
| View ledger | Finance → Ledger and Journal → Ledger |
What’s Next?
You’ve completed the Journal Module evaluation. Choose your next module:
Questions?
If anything wasn’t clear or you’d like a live demonstration:
- Demo Coordinator: fatimah@bigledger.com
- Technical Support: support@bigledger.com