The Post Journal function in the nominal ledger is used for creating new postings or reallocating existing postings to different nominal codes. This guide provides a detailed step-by-step process for using the Post Journal function, including creating, balancing, and adjusting journal entries.

Steps to Post a Journal

1. Access the Post Journal Function

  • Navigate to:
    Accounts > Nominal Ledger > Journals Tab.
  • Click the Post Journal button at the top of the window.

2. Batch Details

  • Set the Posting Date:

    • This is the nominal date for the batch and is applied to all entries in the batch.

  • Enter a Reference:

    • Add a descriptive reference for the journal. This will appear alongside the posting in the Nominal Transaction Report.

  • Print Option:

    • Select whether to print the batch upon completion.

3. Current Journal Line

  • Enter the Nominal Code:

    • If known, type the nominal code directly.
    • If unknown or if using a Nominal Shortcut, click the Lookupbutton.
      • Shortcut Filtering: Filter the list by entering part of the shortcut name under "Description" or by line number under "Line No."

  • Build Nominal Code:

    • Use the Build Nominal Code tab to construct a code from available options (e.g., Branches, Departments, Nominal Code Types).

  • Add Journal Line Details:

    • Amount: Enter the value for the journal line. Use a minus sign for credit postings.
    • Quantity: Optional. Add quantities such as parts sold or hours logged if applicable.
    • Notes: Include any notes relevant to the journal entry; these will display in the Nominal Transaction Report.

  • Linking to Accounts:

    • For postings to scheduled accounts (e.g., Vehicle Stock, Debtors):
      • Include the stock number (e.g., 123.1), Sales or Purchase ledger account number (prefixed by company number, e.g., 010001), or job number (formatted similarly to the stock number).

4. Add and Balance the Journal

  • Click Add to create the journal line. The system will return to the Nominal Code field to allow entry of the next line.
  • Deleting a Line:
    • Double-click the transaction and select Yes to delete.
  • Balancing the Journal:
    • The journal must balance (i.e., the Balance field at the bottom right must be zero). The Post Journal button becomes active only when this condition is met.

Additional Features

Reverse Journals

  • To create an accrual or prepayment, tick the Reverse Journalcheckbox.
    • This posts the journal for the selected date and automatically reverses it on the first day of the following period.

Adjustments to VAT Return

  • If posting to VAT balance sheet codes (e.g., 0.0.70.3 or 0.0.60.4), a pop-up will prompt you to add entries to the VAT return:
    • Cancel: Skips adding an entry to the VAT return.
    • Enter Turnover Figure: Includes a turnover figure on the VAT return for the journaled amount.
      • If no turnover figure is entered, the entry will appear on the VAT return without turnover data.

Key Notes

  • Balancing Requirement: Journals cannot be posted unless they are balanced (Balance = 0).
  • Flexible Code Building: Use the Build Nominal Code feature for customising codes.
  • VAT Compliance: Ensure VAT-related entries are accurately reflected in the VAT return.

Scenarios Where This Process is Useful

  • Adjusting incorrect nominal ledger postings.
  • Reallocating expenses or income between accounts.
  • Recording accruals, prepayments, or other adjustments for accurate financial reporting.