Introduction

What is Journal Entry in General?

Manual Journal Entry module is used to automate the entire month-end journal process: create, review, and approve journals, then electronically certify and store them with all supporting documentation. Automation rules allow JE to be created and posted automatically. It provides a permanent audit trail and helps eliminate error-prone journal entries.

Types of Journal Entry

There are mainly two types of Journal Entries:

Automated Journal Entry
Manual Journal Entry

Automated / Calculated Journal Entry

In an automated Journal Entry, the Journal Entries are automatically calculated by the system without requiring a user to input Journal information. In this case, the Journal Entry job knows where to fetch all the necessary data to calculate and post the journals. However, These Journal Entries can go through the same approval process as manually added Journal Entries. For example, the Leave Accrual Process A process is a Process Definition that is submitted into a queue. When users request the execution of a chain, a process server creates a record in the Job table, calculates the start time and sets the status to Assigned. job automatically fetches employee leaves and payment information from the HR system, calculates the Journal vouchers and posts them to SAP after manager approval.

Calculated Journal Entries in FA:

Calculate AMEX Accrual and Post Journal
Calculate Leave Accrual And Post Journal
Calculate Leave Accrual And Post Journal

Manual Journal Entry

Manual Journal Entries are added by an FA user (Preparer) on an ad-hoc basis. User provides all information related to the Journal and submits them for Approval. These entries are posted to SAP after approval from the manager.

For example, users may add a Journal Entry for business expenses reported by an Employee.

Why is Journal Entry Important?

The Manual Journal Entry module of Redwood provides several benefits, including increased productivity and efficiency through automatically created, validated, and posted journals from multiple sources. It automatically detects errors and can rule out postings, hence reducing both the time spent on JE and possible errors. It also offers real-time visibility to monitor progress, reducing the risk of reporting delays and neglected activities. The centralized journals management ensure transparency and oversight on status of close period.

Journal Entry Detailed Functionality

The Manual Journal Entry module offers a wide range of features and functionality that allow for end-to-end automation of the entire month-end journal process. This section provides a detailed breakdown of the various capabilities of Redwood's Manual Journal Entry module:

Technical features

Functional coverage

User experience

Configurable JE-template – Excel based or forms
Mandatory requirement e.g. evidence upload
Automated JE creation
Automated retrieval of data & calculation for Journal Entry (accruals engine)
Account assignment based on mapping table
Flexible Approval Matrix
Criteria based multi-level approval
Delegation of approval & new tasks
Validation against ERP Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. A complete ERP suite also includes enterprise performance management, software that helps plan, budget, predict, and report on an organization’s financial results. metadata
Custom validation rules
Full audit trail & archiving

Automated Journal Entry creation
Automated retrieval of data & calculation for Journal Entry (accruals engine)
LDAP & SAP integration for roles & responsibilities
Automatic or mass reversal
Flexible workflow
Error & exception handling
Test posting

SAP error messaging back to Requester
Uploading of evidence in SAP
Integrated to your email
Ability to link audit trail to customer’s archive systems e.g. SharePoint
Ability to call Journal Entry from other pillars/modules

Table An object used to store values; much like a table in a database or a spreadsheet in Microsoft Excel. 1 Manual Journal Entry detailed functionality

Journal Entry Users

This section identifies the roles that can be assigned to a user in the Manual Journal Entry module. A user can have multiple roles.

User Roles	Responsibility
Preparer	Prepares entries Attaches comments and supporting items Validates journal entries Submits entries for approval (if any) Requests new entries
Approver	Provides first level review of entries Review supporting documents and comments (if any) Certifies entries with electronic signature Decertifies entries and pushes entries back to preparer (if needed)