Recurring Journal: to post regular transactions with minimal or no changes.
The following are some features, conditions or settings for recurring journal.
• Feature for allocating single entry to multiple general ledger accounts when posting based on quantity, fixed rate or allocation percentage
• Reversing journal can also be created using recurring journals such as accrual journals that are reversed in the following month
• Contains special fields for managing recurring entries
• Balancing field not available on journal line
• Journal lines remains after posting
• Not allow future date posting
In a recurring journal, you only need to enter the variable data, such as posting date, amounts, and accounts to be used for posting. Also, information to state how frequent to post the transaction.
The Recurring Method field determine how the amount on the journal line is treated after posting. Six options of the recurring method that you can define in NAV.
|Balance of the account on the lone is allocated among the account specified for the line on the Allocation page.
For example, periodic allocation of an expenses account across departments.
|Use when journal amount is same each period. The amount in the journal line remain unchanged after posting.
For example, monthly fixed expenses such as rental.
|Use when journal amount is different each period. The amount on the journal line is deleted after posting.
For example, monthly variable expense such as salary.
|Balance of the account on the line is allocated amount the accounts specified for the line on the Allocation page. The balance on the account is set to zero and a reversing entry posts on the following day.
Same example as Balance method but the allocation only provisional (i.e. temporary allocation because they are only an estimate for periodic reporting).
|Amount of the journal line remains unchanged after posting and a reversing entry posts on the following day.
For example, monthly accrual of a fixed amount invoice not received until the following month.
|Amount on the journal line is deleted after posting and a reversing entry is posted the next day.
Monthly accrual of an invoice (i.e. utilities bill) not received until the following month.
The posting date recurrence is defined in the Recurring Frequency field. This field contains a formula that determine how regular the entry will be posted.
For example, if the formula 1M is entered with a posting date of 1/9/18, after the journal is posted the date change to 1/10/18.
To post the first entry on the last day of a month, enter the formula 1D+1M-1D (1 day + 1 month -1 day). With this formula NAV calculates the date correctly regardless of how many days are in the month.
Document Number Formulas
NAV provides an option to enter formula to create a number series for each posted entry instead of using a number series to determine the value in the Document No. fields. This fields support up to 20 alphanumeric characters so consider this limitation when you are creating formulas.
For example, if you want the document number for the current month rent (i.e. September Rent) then enter R%4 in the field.
Simple text can be combined with the following text code to from a number series.
• %1 – current day number
• %2 – current week number
• %3 – current month number
• %4 – current month name
• %5 – current accounting name
Allocations are used to allocate the amount on the recurring journal line to several G/L accounts and dimensions. Due to balancing field not available in recurring journal line, the allocation itself is the balancing account line to the recurring journal line.
An allocation is only one-time setup just like recurring journal. It remains in the allocation journal after posting.
You can setup up Expiration Dates on the recurring journal lines. This field is uses to limit the posting period by specifying the last date of the repetitive entries and the line will not be posted after the date entered in the field.
Benefit of using this field is that the line will not be deleted from the journal instantly and the present expiration date can be replaced with a later one.
Processing Recurring Journals
Process a Recurring Journal with Allocations
Scenario: Set up a recurring general journal (as shown in Figure 1) for monthly expenses to Cleaning expenses (G/L 8110) with a fixed amount $400.00 due on 15th of each month and allocate to the department as below.
• Administration – 50%
• Production – 25%
• Sales – 25%
This post was written by Katrine Ng, Solution Specialist at Evolution Business Systems.
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