Journal entries FAQ

What are journal entries?

Adjustments are often required to ensure data complies with local accounting rules, to make corrections to loaded data, or account for timing differences. Journal entries allow you to adjust existing account data in a model. You make journal entries using Journals Manager.

Why are journal entries necessary?

There are many reasons for needing to adjust data, including the following:

  • to correct errors
  • to account for timing differences
  • to ensure data complies with local accounting rules

Why are journal entries important?

Journal entries make possible a complete audit trail of changes to the original data in a model. The original data is never directly altered by the adjustments as all changes are strictly segregated in the Classification dimension.

Why are debit/credit settings important?

When using journal entries to make adjustments to data in a model, you must ensure that the Account properties are set correctly. The Debit/Credit property of an account determines how the resulting value from the journal entry is posted to the model. For example, if an account has a debit setting, journals that include debit amounts will increase the existing value in the model. Using mismatched debit/credit settings results in the wrong adjustment values being posted to the model.

The treatment of debits and credits can be summarized as follows:

Journal line column If account type is debit ... If account type is credit ...
If value is entered to Debit column ... Value is added to the account balance. Value is subtracted from the account balance.
If value is entered to Credit column ... Value is subtracted from the account balance. Value is added to the account balance.

Who sets up journals?

Someone assigned the Journals Manager Administrator role.

Who can make journal entries?

Users assigned the Journals Manager Contributor role or the Journals Manager Administrator role.

What types of journal entry can you make?

Any of the following types:

  • one time entries
  • fixed or standard entries
  • recurring
  • reversing/accrual

How should a model be set up for journals?

When creating a financial model, include the Classification dimension.

Can an existing model use journals?

To enable journals for an existing model, create additional members in the Organization/Geography/Version dimension to store journal entry values.