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
| Setting | Options | Description |
|---|---|---|
| Frequency | Daily, Weekly, Monthly, Quarterly, Yearly | How often to create |
| Reminder | Email notification | Alert before posting |
| Auto-create | Yes/No | Automatic or manual creation |
| End Date | Date or Never | When to stop recurring |
| Next Date | Specific date | When next entry will create |
Creating a Memorized Transaction
- Create a standard journal entry
- Save the entry
- Go to Actions > Memorize
- Set schedule and options
- Save memorized transaction
Common Recurring Entries
| Entry | Frequency | Example |
|---|---|---|
| Depreciation | Monthly | Fixed asset depreciation |
| Rent accrual | Monthly | Accrue rent expense |
| Loan interest | Monthly | Accrue interest expense |
| Prepaid amortization | Monthly | Amortize prepaid insurance |
| Intercompany fees | Monthly | Management 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
| Scenario | Why Reverse? |
|---|---|
| Accruals | Reverse when actual bill received |
| Estimates | Reverse when actual known |
| Timing adjustments | Temporary period-end entries |
| Audit adjustments | Reverse 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
- Create journal entry
- Check Reversal Date field
- Enter date for reversal
- 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
- Go to Customization > Workflow
- Create workflow for Journal Entry record
- Add approval states and transitions
- Define approvers by role or amount
Best Practices
For Memorized Entries
| Practice | Benefit |
|---|---|
| Review amounts periodically | Catch changes |
| Set end dates when appropriate | Prevent stale entries |
| Use reminder emails | Manual review before posting |
| Group related entries | Easier management |
For Reversing Entries
| Practice | Benefit |
|---|---|
| Always use for accruals | Cleaner next period |
| Set reversal to 1st of next month | Consistent timing |
| Reference in memo | Easy to identify |
| Review reversed entries | Ensure actual recorded |
General Journal Entry Practices
| Practice | Benefit |
|---|---|
| Use descriptive memos | Easier audit trail |
| Reference source documents | Traceability |
| Review before posting | Prevent errors |
| Consistent naming | Searchability |
Next Steps
- Journal Entries Overview - All journal types
- Standard Journal Entry - Regular GL adjustments
- GL Flow Map - Complete GL reference