Manage journal entries

 

Updated: November 1, 2016

Applies To: Dynamics Marketing

System_CAPS_importantImportant

Microsoft Dynamics Marketing is scheduled to be retired on May 15, 2018. After that date the service will no longer be available. Please plan accordingly. For details, see the blog post Microsoft Dynamics Marketing service will be discontinued, and learn what’s coming next.

Journal entries are accounting transactions that are made directly into general ledger accounts, rather than via invoices, posting expenses or paying bills. Journal entries are usually recorded in chronological order, and using the double-entry method of bookkeeping.  Journal entries are commonly used to adjust the balances in general ledger accounts.

Journal entries must balance. Microsoft Dynamics Marketing displays the variance - the difference between the credits and debits. If the variance is not zero, i.e. if the debits and credits aren't equal, Microsoft Dynamics Marketing will display a warning message and you won’t be able to save the journal entry until it is in balance - i.e. the credits and debits are equal. The rules of double entry book-keeping are as follow:

  • Debits increase the balances of Expense accounts; credits decrease their balances.

  • Debits decrease the balances of Revenue accounts; credits increase their balances.

  • Debits decrease the balances of Liability accounts; credits increase their balances.

  • Debits increase the balances of Asset accounts; credits decrease their balances.

To view journal entries, go to Budgeting > Reconciliation > Journal Entries.

  1. On the Journal Entries page, choose the New  New button button. Microsoft Dynamics Marketing opens the new journal entry page.

  2. Enter the information as follows:

    Field

    Description

    ID

    Microsoft Dynamics Marketing assigns a unique ID number to each journal entry.

    Date

    Enter the date of the journal entry.

    Type

    Specify the type of journal entry. (Optional.)

    More information: Create custom drop-down values and folders

    Created by

    Select a contact.

    Description

    Enter a description. (Optional.)

    Currency

    Select a currency from the pull-down menu. (Required.)

  3. Choose Save. Microsoft Dynamics Marketing displays the Journal Entry grid.

Journal entries can include two or more items or rows.

  1. Enter the item data as follows:

    Field

    Description

    Date

    Enter the accrual date of the journal entry item. The date of the first row is defaulted from the date of the journal entry, then the date for each row defaults from the date of the preceding row. (Required.)

    System_CAPS_noteNote

    The item date is the date that is used to post the journal entry to the general ledger.

    Account

    Select a general ledger account from the pull-down menu. (Required.)

    Description

    Enter a description. The description of the first row is defaulted from the description of the journal entry, then the description for each row defaults from the description of the preceding row. (Optional.)

    Budget Category

    Select the budget category for the row. (Optional.)

    Company

    Specify a company. (Optional.)

    System_CAPS_noteNote

    The job and company specified do not need to correspond.

    Job

    Specify a job. (Optional.)

    System_CAPS_noteNote

    The job and company specified do not need to correspond.

    Debit

    Enter the amount you want to debit from the account. (Required.)

    Credit

    Enter the amount you want to credit to the account. (Required.)

  2. Choose Submit.

Reversing entries are an optional accounting procedure which may prove useful in simplifying record keeping. A reversing entry is a journal entry to "undo" an adjusting entry. To create a reversing entry, enter the first journal entry as usual. Then add a second entry that is the reverse of the first entry in the appropriate accounting period. For example, an adjusting entry was made to record 2,000 of accrued salaries at the end of 2003. The next payday occurred on January 15, 2004, when 5,000 was paid to employees. The entry on that date required a debit to salaries payable (for the 2,000 accrued at the end of 2003) and salaries expense (for 3,000 earned by employees during 2004).

Date

Account

Debit

Credit

12/31/2003

Salary Expense

2,000

12/31/2003

Salaries Payable

2,000

Using Reversing Entries create a pair of entries that reverses the adjusting entry. On the following payday, January 15, 2004, the entire payment of 5,000 is recorded as expense:

Date

Account

Debit

Credit

12/31/2003

Salary Expense

2,000

12/31/2003

Salaries Payable

2,000

1/1/2004

Salary Expense

2,000

1/1/2004

Salaries Payable

2,000

1/15/2004

Salary Expense

5,000

1/15/2004

Cash

5,000

Financial and general ledger accounts are designed for marketing budget management only. Financial features are restricted to the limits stated in the Security and Financial Disclaimer. Microsoft Dynamics Marketing is not designed to comply with country/region-specific laws, regulations, or common business practices.

Show: