How to Create a Journal Entry in Tagrit ERP Accounting Module

Introduction

Journal entries are essential for tracking transactions that involve both debits and credits. In Tagrit ERP, creating a journal entry allows you to transfer funds between accounts, log asset purchases, and more. This guide walks you through creating a basic journal entry with one debit and one credit transaction, along with accessing the related reports.

1. Understanding Journal Entry Scenarios

In Tagrit ERP, journal entries can be used in various scenarios:

• Scenario 1: Transfer money between income and expense accounts.
• Scenario 2: Transfer money between an asset, liability, or equity account to an income or expense account.
• Scenario 3: Traditional accounting entries that require a general ledger or journal.

2. Steps to Create a Journal Entry

1. Go to the Journal Entry Section:

   • Navigate to Journal Entries and select Add to create a new journal entry.

2. Set Up Basic Details:

   • Enter the journal date and journal number at the top.

3. Choose Accounts and Amounts:

   • In this example, we’ll create a journal entry for monthly depreciation of a fixed asset.

   • Line 1 - Debit:

     • Select an expense account, such as Reconciliation Discrepancies.
     • In the Debit column, enter the amount, e.g., 500.
     • Provide a description (e.g., "Monthly Depreciation") to note the purpose.

   • Line 2 - Credit:

     • Select an asset account such as Property, Plant, and Equipment.
     • Enter the same amount in the Credit column (e.g., 500).
     • Add the same description for consistency.

4. Save the Entry:

   • Once all information is entered, click Save. The journal entry will now be recorded and viewable on the Journal Entry Management screen.

3. Reviewing the Journal Entry in Reports

1. View in Journal Report:

   • To see the recorded entry, navigate to Reports and choose the Journal Report.
   • Filter the report by the journal entry date to locate your recent entry.
   • The details, including the debit and credit accounts, will be displayed.

2. Locate in Account Registers:

   • The journal entry is also available in the register screens of the relevant accounts.
   • For example:
     • The Property, Plant, and Equipment account will display the journal entry with a credit of 500.
     • The Reconciliation Discrepancies account will show a corresponding debit of 500.

Conclusion

Creating a journal entry in Tagrit ERP is straightforward, allowing you to maintain accurate financial records. By recording both debits and credits, you can ensure that your accounts remain balanced and are ready for reconciliation and reporting.