Record journal entries

Find this screen

Open: Nominal Ledger > Enter Transactions > Journal Entry.

How to

Enter a journal

1. Select New journal entry and Single entry.
2. Enter a Title and Date for the journal. The Title must be unique.
3. Enter the nominal account details and values in the Journal transactions section.
   • Code, CC, Dept: Select the required nominal account, including the cost centre and department.
   • Narrative: A description of the transaction. This defaults to the Journal title, but you can add a different description for each nominal account if you want to.
   • Type: You can choose posting accounts or memo accounts. If you choose a memo account, the value entered will not be included in the double entry totals. This enables you to analyse one journal entry in several ways without affecting the balance of the Nominal Ledger.

   • Transaction Analysis: Use this column to choose a transaction analysis code from the drop-down list (if transactional analysis is enabled in Nominal Ledger Settings).

     • The column shows the heading you've entered in the System Settings.
     • The list contains the transaction analysis codes you've set up.

   • Debit/Credit: Enter debit or a credit value (but not both) for each nominal account. In both cases, the value is positive, i.e. you do not need to enter a minus sign to indicate a credit item.

4. Select Post to save and post the journal.

Enter a journal with VAT

You should only use journals that include VAT for transactions that:

• Can't be entered using any other Sage 200 processes such as an invoices, credit notes, bank payments or receipts.
• Don't affect the bank account.
• Need to be included on the VAT Return.

When posting a journal with VAT, you must make sure the nominal account details contain separate lines for the net, VAT and gross values. This makes sure that the journal is included on your VAT Return correctly. In a single journal, you can have several lines representing each of these elements.

Note: For more information, see How a nominal journal affects your VAT return.

1. Select New journal entry and Single entry.
2. Enter a Date and Title for the journal.
3. Enter the nominal account details for the net amount plus the following:
   • VAT Type: Choose Input Goods or Output Goods depending on whether the journal represents a sale or a purchase.
   • VAT Code: Choose the VAT rate for the journal.
   • Debit / Credit: Enter the value excluding VAT.
4. Enter the nominal account details for the VAT amount plus the following:
   • Code: Choose the appropriate VAT Input or VAT output nominal account.
   • VAT Type: Choose Input VAT or Output VAT depending on whether the journal represents a sale or a purchase.
   • VAT Code: Choose the VAT rate for the journal.
   • Debit/Credit: Enter the VAT value.
5. Enter the nominal account details for the gross amount, pus the following:
   • VAT Type: Choose N/A.
   • Debit/Credit: Enter the gross value.
6. Click Post to save and post the journal.

Post a journal entry from a journal template

1. Select Use template.
2. Select the template from the Journal template drop-down list.
3. Enter a Title and Date for the journal.
4. Enter the nominal account details and values for the journal, where required.
5. Click Post to save and post the journal.

Note: If you can't see a journal template in the list, it may be restricted for use inside a certain date range.

Post a recurring journal entry

This lets you post the same journal several times on different dates. You enter the details of the journal and the number of times and dates that you want to post it.

Once you click Post, all the journals are posted. Those that are for Future periods are kept in the deferred posting file until the period is opened.

Note: You can't set recurring journals to reverse.

1. Select New journal entry and Recurring entry.
2. Enter a Title and Date for the journal.
3. Click Details.
   1. Enter the number of times you want to post the journal.
   2. Posting dates are set up for the same date in each month. Use the date picker to change the dates as required.
4. Enter the nominal account details and values for the journal.
5. Click Post to save and post the journal.

Post a reversing journal entry

You use a reversing journal to post a journal and its reverse on a future date. For example, you might to make an adjustment to the value of stock that needs to be reversed after the period end.

When you click Post the journal and the reverse are posted. If the reverse is in a Future period, these are kept in the deferred posting file until the period is opened.

Note: You can't set reversing journals to recur.

1. Select New journal entry and Reversing entry.
2. Enter a Reversing Date for the journal.
3. Enter a Title and Date for the journal.
4. Enter the nominal account details and values for the journal.
5. Click Post to save and post the journal and the reverse.

Suspend or hold a journal

If you want to enter the details of a journal but not post it straight away, you can put it on hold. This allows you to come back to it later to change or delete or post it.

1. Enter the details of the journal.
2. Click Hold to suspend or hold the journal.

Print a journal

If you want to keep a record of the journal entries before you post them, select Print.

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Useful info

About journal entries

Journal entries are used to post transactions directly to your nominal accounts or to transfer values between nominal accounts. Use journals for transactions that can't be entered using other Sage 200 screens or for making corrections when transactions have been posted to the wrong nominal account.

Each journal entry must follow double-entry bookkeeping principles and balance (the debit and credit amounts must equal) before it can be posted.

Using journal templates

Journal templates enable you to create a library of reusable journals.

For example, you transfer set amounts between nominal accounts on a regular basis so you create and use a template to hold the details of the nominal accounts posted to and the amounts involved.

Each journal template can be amended or deleted when required. Once you have created the template, you can select it and use its details as the base for a new journal.

Taxable journals

You can use taxable journals for special VAT schemes, or to process fuel scale charges.

Note: You should not use a nominal taxable journal to replace the usual invoice, credit note and taxable payment or receipt features.

Only use journals that include VAT for transactions that:

• Can't be entered using any other Sage 200 processes such as an invoices, credit notes, bank payments or receipts.
• Don't affect the bank account.
• Need to be included on the VAT return.

When posting a journal with VAT, you must make sure the nominal account details contain separate lines for the net, VAT and gross. This makes sure that the journal is included on your VAT return correctly. In a single journal, you can have several lines representing each of these elements:

• The gross element lines will use the tax type N/A.
• The net element lines will have the tax type Input goods or Output Goods. They represent the value of the entry excluding VAT.
• The tax element lines will have the tax type Input VAT or Output VAT. They represent the value of the VAT on the entry. The tax element will almost always be posted to the nominal account used as the VAT control account.

How a journal affects your VAT return

The VAT Type that you select for each line of the journal affects how it is recorded on your VAT return.

N/A – Not applicable	The value will not be included on the VAT return.
Input Goods	The value will increase or decrease the amount in box 7 of the VAT return.
Input VAT	The value will increase or decrease the amount in box 4 of the VAT return.
Output Goods	The value will increase or decrease the amount in box 6 of the VAT return.
Output VAT	The value will increase or decrease the amount in box 1 of the VAT return.

	Journal type
Box 1	Journal credit or debit to the Default Output VAT nominal account, with the VAT Type set to Output VAT, and a VAT Code of 0 – Exempt, 1 – Standard Rate or 2 – Zero rated. A journal credit will increase the value in this box, and a journal debit will decrease the value.
Box 4	Journal debit or credit to the Default Input VAT nominal account, with the VAT Type set to Input VAT, and a VAT Code of 0 – Exempt, 1 – Standard Rate or 2 – Zero rated. A journal debit will increase the value in this box, and a journal credit will decrease the value.
Box 6	Journal credit or debit to any nominal account, with the VAT Type set to Output Goods, and a VAT Code of 0 – Exempt, 1 – Standard Rate or 2 – Zero rated. A journal credit will increase the value in this box, and a journal debit will decrease the value.
Box 7	Journal debit or credit to any nominal account, with the VAT Type set to Input Goods, and a VAT Code of 0 – Exempt, 1 – Standard Rate or 2 – Zero rated. A journal debit will increase the value in this box, and a journal credit will decrease the value.
Box 8 or 9	It is not possible to affect boxes 8 and 9 on the VAT return using journal transactions.

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What happens

What happens when I post a journal?

When you click Post:

• Transactions are posted to the relevant nominal accounts.

  Have you enabled the setting Update the Nominal Ledger immediately journal entries are posted in the Nominal Ledger Settings?

  • If you have enabled this setting, postings are applied immediately to the nominal accounts
  • If you have not enabled the setting, postings are added to the waiting posting file (current or deferred).
• For a recurring journal, a transaction is posted for each date specified in the recurring journal record.
• For a reversing journal, a reverse transaction is also posted for the date specified.
• For a journal with VAT, the transaction is included when a VAT return or VAT reports are run.