Making a Journal Book Entry

Springly simplifies data entry for many types of entries — including expenditure and revenue entries, refund entries, internal transfers, cash deposits & withdrawals, deposit slips, and more.

However, some entries are too complex or too specific to be entered this way. The journal book entry feature lets you create these entries.

This article covers the following topics:

• How journal book entry works
• Creating an entry in journal book entry mode
• Special journal book entry cases

Journal book entry works like standard accounting software and requires advanced accounting knowledge. Before using it, make sure the entry is correct from an accounting standpoint.

How journal book entry works

Overview

This feature is useful when you need to affect multiple accounts of the same class, or when you need to freely choose the account to affect and it is not available in standard entry mode.

Applicable use cases

The main use cases for journal book entry are:

• Recording payroll;
• Reversals that are not generated automatically;
• Corrective entries, used to fix an error from a closed accounting period.

See this article for more information on recording a payroll entry.

Technical limitations

• Journal book entry should not be used to record a payment that settles an entry created through the expenditure/revenue module. Doing so may cause inconsistencies in the C/FWD balances generated at closing;

To make things easier, a new system has recently been introduced to automatically identify entries that belong to known account types (expenditures, revenues, payments, etc.), so they can be displayed on the payables/receivables page.

• Other entries created in journal book entry mode will not appear on the payables/receivables page, and will retain the specific format of journal book entries.

Creating an entry in journal book entry mode

Entering an entry

To create a journal book entry, go to Accounting > Entry > Journal Book Entry.

You will land on this page:

You can record one or more accounting records, each made up of multiple lines. Each line includes the following fields:

• Description
• Account
• Debit / Credit.

For each accounting record, the total debits must equal the total credits. This balancing requirement stems from a fundamental accounting principle: double-entry bookkeeping.

This is a fundamental accounting principle. For every transaction, the entry must be balanced: the total of the debit column must equal the total of the credit column.

Entering a group of entries linked to a third party

When you record an entry affecting a third party account (401 - Accounts payable; 411 - Accounts receivable; or 467 - Contacts), you must enter the full group of entries — that is, both the accrual and the payment — just as you would with a standard entry. If you only enter the accrual or only the payment, your third party account will be out of balance, which will generate a carried forward balance at the close of your accounting period.

For example: you use journal book entry to record a payment received from a member (account 467) for event attendance, which affects your bank account (account 512).

This entry corresponds to the payment. However, if no accrual entry was previously created, your third party account 467 will be out of balance because the credit entry will not be offset by a debit entry.

You can add the accrual entry at the time of entry by clicking "+ New record", or do it later. Enter the same amount in both debit and credit for account 467 to balance the account, then save.

Journal code used

The journal code is automatically determined by the software based on the account entered.

For example, if you enter account 512 (bank), the code will be BQ1 for account 512001, BQ2 for account 512002, and so on.

The main rules for assigning the journal code are:

• Sales: if a revenue entry is detected;
• Purchases: if an expenditure entry is detected;
• Bank: if an entry linked to a bank account is detected;
• Miscellaneous Operations: cases that do not fall under the other journals (e.g., 511200).

For more information on journal types and how they work, see this article.

If a single record contains accounts belonging to different journals, then:

• The BQ code takes priority if a 512-type account is used;
• If no 512 account is present but a 531 account is, the CA code applies;
• With neither 512 nor 531, the code depends on the presence of class accounts:
  • 6 → Journal AC
  • 7 → Journal VT
  • 89 → Journal AN
  • 86/87 → Journal CVN
    If multiple account types are used, the code of the account lowest on the list takes precedence;
• Finally, if none of the 512/531/6/7/89/86/87 accounts are used, the code will be OD (for Miscellaneous Operations).

You can therefore force a specific journal code (AC/VT/AN/CVN) by placing the corresponding account type at the bottom of the list when entering the record.

Adding a custom number

When a book entry is saved, the software automatically generates a unique ID for it, which you can use to find each entry.

However, if you use a separate identification system outside of the software, the "Custom number" feature lets you assign your own identifiers to each book entry, making it easier to find and match them.

To enable this option, go to Settings > Accounting, then scroll to the Advanced Settings section.

Check "Custom accounting record numbers" (toggle at the end of the row).

Then go back to the journal book entry module. The custom number field is located below the Date field.

This number is visible in the following accounting documents (including when exporting): Expenditures-Revenues, Journal, General Ledger.

You can add or edit a number at any time by editing an entry.

Special journal book entry cases

Recurring entries

If you make or receive regular payments (bank loans, payroll, grants, etc.), you can duplicate the previous month's entry and update the date and amount as needed.

Corrective entries

Purpose

If you discover a data entry error in your accounting after the accounting period has been closed, you can post a corrective entry to fix the discrepancy. If this feels complex, we strongly recommend consulting a certified public accountant (CPA).

You can also undo the closing, but this carries the risk of deleting entries.

Corrective entries are typically posted at the beginning of the following accounting period. Once posted, they correct the discrepancy while keeping a record of the adjustment.

Account 890000

Entries to account 890000 are blocked to prevent inconsistencies and the risk of throwing the statement of financial position out of balance.

To correct a prior-year payable/receivable that is no longer valid, use exceptional income and expense accounts. This entry can be made from the Expenditure/Revenue module and/or via a credit note entry.

If you are unsure which account to use, consult a CPA. That said, feel free to contact us if your question is about which feature to use to enter or correct the situation.