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Recurring & Reversing Entries

Templates for recurring entries and entries that automatically reverse.


Memorized (Recurring) Journal Entries

Templates that can be scheduled to create journal entries automatically.

Setup Options

SettingOptionsDescription
FrequencyDaily, Weekly, Monthly, Quarterly, YearlyHow often to create
ReminderEmail notificationAlert before posting
Auto-createYes/NoAutomatic or manual creation
End DateDate or NeverWhen to stop recurring
Next DateSpecific dateWhen next entry will create

Creating a Memorized Transaction

  1. Create a standard journal entry
  2. Save the entry
  3. Go to Actions > Memorize
  4. Set schedule and options
  5. Save memorized transaction

Common Recurring Entries

EntryFrequencyExample
DepreciationMonthlyFixed asset depreciation
Rent accrualMonthlyAccrue rent expense
Loan interestMonthlyAccrue interest expense
Prepaid amortizationMonthlyAmortize prepaid insurance
Intercompany feesMonthlyManagement fee charges

GL Example: Memorized Depreciation

MEMORIZED DEPRECIATION ENTRY
═══════════════════════════════════════════════════════════════════════════════

Template Entry:
┌────────────────────────────────────┬────────────┬────────────┐
│ Account │ Debit │ Credit │
├────────────────────────────────────┼────────────┼────────────┤
│ Depreciation Expense - Equipment │ $5,000.00 │ │
│ Depreciation Expense - Vehicles │ $2,000.00 │ │
│ Depreciation Expense - Furniture │ $500.00 │ │
│ Accumulated Depreciation - Equip │ │ $5,000.00 │
│ Accumulated Depreciation - Veh │ │ $2,000.00 │
│ Accumulated Depreciation - Furn │ │ $500.00 │
├────────────────────────────────────┼────────────┼────────────┤
│ TOTAL │ $7,500.00 │ $7,500.00 │
└────────────────────────────────────┴────────────┴────────────┘

Memo: Monthly depreciation - [Month Year]

Schedule:
Frequency: Monthly
Next Date: 1st of each month
End Date: Never (until assets fully depreciated)
Auto-create: Yes

Reversing Journal Entries

Entries that automatically reverse in the next period.

When to Use

ScenarioWhy Reverse?
AccrualsReverse when actual bill received
EstimatesReverse when actual known
Timing adjustmentsTemporary period-end entries
Audit adjustmentsReverse after audit complete

How It Works

REVERSING JOURNAL ENTRY FLOW
═══════════════════════════════════════════════════════════════════════════════

DECEMBER 31


┌─────────────────────┐
│ Original Accrual │
│ Entry Created │
│ │
│ ☑ Reversal Date: │
│ January 1 │
└──────────┬──────────┘

┌──────────────┼──────────────┐
│ │ │
▼ │ ▼
DECEMBER 31 │ JANUARY 1
P&L includes │ Reversal entry
accrued expense │ auto-created
│ │
│ ▼
│ JANUARY 15
│ Actual bill
│ recorded
│ │
└──────────────┘


Net expense in
January = variance
from estimate

GL Example: Reversing Accrual

REVERSING JOURNAL ENTRY
═══════════════════════════════════════════════════════════════════════════════

December 31, 2024 - Original Accrual (marked for reversal):
┌────────────────────────────────────┬────────────┬────────────┐
│ Account │ Debit │ Credit │
├────────────────────────────────────┼────────────┼────────────┤
│ 6200 Utilities Expense │ $3,000.00 │ │
│ 2150 Accrued Expenses │ │ $3,000.00 │
└────────────────────────────────────┴────────────┴────────────┘
☑ Reversal Date: January 1, 2025


January 1, 2025 - Auto-Generated Reversal:
┌────────────────────────────────────┬────────────┬────────────┐
│ Account │ Debit │ Credit │
├────────────────────────────────────┼────────────┼────────────┤
│ 2150 Accrued Expenses │ $3,000.00 │ │
│ 6200 Utilities Expense │ │ $3,000.00 │
└────────────────────────────────────┴────────────┴────────────┘

January 15, 2025 - Actual Bill Received ($3,200):
┌────────────────────────────────────┬────────────┬────────────┐
│ Account │ Debit │ Credit │
├────────────────────────────────────┼────────────┼────────────┤
│ 6200 Utilities Expense │ $3,200.00 │ │
│ 2000 Accounts Payable │ │ $3,200.00 │
└────────────────────────────────────┴────────────┴────────────┘

Net January Expense: $3,200 - $3,000 = $200 (variance from estimate)

Setting Up Reversing Entries

Checkbox Method

  1. Create journal entry
  2. Check Reversal Date field
  3. Enter date for reversal
  4. Save

What Gets Reversed

  • All debit/credit lines are swapped
  • Same accounts, opposite direction
  • Same memo with "Reversal of" prefix
  • Linked to original entry

Journal Entry Approval Workflow

Optional approval process for journal entries.

Approval Configuration

JOURNAL ENTRY APPROVAL WORKFLOW
═══════════════════════════════════════════════════════════════════════════════

┌─────────────────────┐
│ Journal Entry │
│ Created │
│ Status: Pending │
└──────────┬──────────┘


┌─────────────────────┐
│ Submit for │
│ Approval │
└──────────┬──────────┘

┌────────────────┼────────────────┐
│ │ │
▼ ▼ ▼
┌─────────────┐ ┌─────────────┐ ┌─────────────┐
│ < $1,000 │ │ $1K - $10K │ │ > $10K │
│ │ │ │ │ │
│ Supervisor │ │ Controller │ │ CFO │
│ Approval │ │ Approval │ │ Approval │
└──────┬──────┘ └──────┬──────┘ └──────┬──────┘
│ │ │
└────────────────┼────────────────┘

┌─────────┴─────────┐
│ │
▼ ▼
┌─────────────┐ ┌─────────────┐
│ APPROVED │ │ REJECTED │
│ │ │ │
│ GL Posted │ │ Returned │
│ Status: App │ │ for Edit │
└─────────────┘ └─────────────┘

Setting Up Approval

  1. Go to Customization > Workflow
  2. Create workflow for Journal Entry record
  3. Add approval states and transitions
  4. Define approvers by role or amount

Best Practices

For Memorized Entries

PracticeBenefit
Review amounts periodicallyCatch changes
Set end dates when appropriatePrevent stale entries
Use reminder emailsManual review before posting
Group related entriesEasier management

For Reversing Entries

PracticeBenefit
Always use for accrualsCleaner next period
Set reversal to 1st of next monthConsistent timing
Reference in memoEasy to identify
Review reversed entriesEnsure actual recorded

General Journal Entry Practices

PracticeBenefit
Use descriptive memosEasier audit trail
Reference source documentsTraceability
Review before postingPrevent errors
Consistent namingSearchability

Next Steps