|
8.5 GENERAL LEDGER JOURNAL ENTRIES
SELECT GENERAL LEDGER THEN SELECT POST JOURNAL
ENTRIES
This screen found in
ADVANTAGE Salon Software
and Spa Software
is where you would enter journal entries that are not
automatically created by the accounts payable or payroll functions.
You will notice that the General Journal is the
default journal to enter journal entries. You can select another
journal that you setup to enter transactions in if you want. There is a
selection for accounting method type to select either this is a cash or
accrual type of accounting transaction. The accrual transaction will go
into the GL transactions database while the cash type transactions will
go into the GL cash transactions database.
The date of the GL transaction will default to the
current date. You can change the date to any date in the future or you
can back date the transaction to the last time you closed the general
ledger module. The closed date is also displayed on this screen.
You chose to enter a standard journal entry or a
recurring entry. If you select a recurring entry you can select from a
list of previously setup journal entries. To add line items to your
journal entry just select the account you want to post to and enter the
appropriate debit or credit.
All journal entries must balance out to zero. That
means that the debits must equal the credits. Select the post button to
save the transaction or you can choose the save as recurring button to
use this transaction again.
CASH Basis vs. ACCRUAL Basis
This accounting
software can report on both cash and
accrual basis for its accounting reports. Essentially, you can run
either type of report at anytime. The tax regulations let businesses
figure their taxable income on a cash basis, rather than on the accrual
basis. Cash basis accounting can result in the postponing the payment
of income tax, although it ordinarily does not reduce the total amount
of income tax over a period of years. Cash basis means that you
recognize revenue the time you receive the revenue or the time when you
pay the expense. Accrual basis means that you recognize the expense
when you actual receive the bill not when you pay it or recognize the
revenue when you bill for your services not when you get paid for them.
|
