Plaza-i JNL Automatic Journal · • Thanks tothis control, since there will be no manual entry...

Managing Business and IT

User’s Guide

Plaza-i JNL Automatic Journal

Business Associates K.K.

This is an English translation version of the original Plaza-i user’s guide in Japanese as of December 2020. If there are any discrepancies between the information provided in the original version and this translated one, the Japanese original version shall govern. Any such discrepancies are not binding and are of no legal effect. Please be reminded that the translation may not be done on a timely basis and the translated version is only provided in the form of PDF.

User’s Guide Plaza-i Auto Journal System Plaza-i JNL Copyright ©1999-2020 All rights reserved Business Associates K.K.

No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the prior written permission of Business Associates K.K.

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Plaza-i Auto Journal

Plaza-i JNL

User ‘s Guide

Issued in August 1999

Updated in December 2020

©1999-2020 Business Associates K.K.

Business Associates K.K.

http://www.ba-net.co.jp We will replace the book if it has a manufacturing defect.

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Chapter 1 Outline

CHAPTER 1 OUTLINE ........................................................................................................................ 1-1

1. INTRODUCTION ................................................................................................................................ 1-2 2. MENU STRUCTURE AND FUNCTION ................................................................................................... 1-3 3. GENERAL ACCOUNTING AND SUB-MODULES ..................................................................................... 1-5 4. OPTION BY COMPANY .................................................................................................................... 1-15 5. TRICHOTOMY OR DIRECT COS METHOD ........................................................................................ 1-17

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1. Introduction

Outline

▲ Scope of Business Operations • Transfer the following journals to Plaza-i GLS: General Accounting Module

⇒ Sales Transaction (A / R / Sales)

⇒ Inventory Transaction (Expenses, etc. / Transfer to other accounts)

⇒ Purchase Transaction (Purchase / A/P): unless Payable Approval transfers journal

⇒ Trichotomy Journal

⇒ Cash Collection Transaction (Cash / Suspense Receipt)

⇒ Cash Collection Voucher (Cash or Suspense Receipt / A/R)

⇒ POS Cash Entry Approval (Cash or Credit Receivable / POS Suspense Receipt)

⇒ A/R Transaction (Bad Debts / A/R)

⇒ Notes Receivable or Payable Transaction

⇒ Project Transaction

⇒ Voucher Estimated Cost

• Transfer Tentative Journal Voucher to GLS

• Define each automatic journal

Characteristics

▲ Transfer Batch Journal Entry • This module converts various transaction data within the specified range to journal entries and

automatically transfers them to GLS.

▲ Summarize Journal in various ways based on the setting in Automatic Journal Master • While every journal is not supported, at time of the batch transfer, this module summarizes source

transactions as per the specified method into an easy-to-understand journal entry format and transfers it to GLS.

▲ Convert into Accounting Information • While this is supported only by sales transaction, etc., this module converts Customer Code of the

business level at each module into Client Company Code in terms of Accounting and transfers automatic journal entry.

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2. Menu Structure and Function

Explanatory note

▲ Menus that are not covered in this user’s guide • (*C): CMN Common System Volume

• (*P): PNS Note Management System

• (*S): POS Management System

▲ Other notes • 【O】: Menus become available based on Option By Company.

• V2: Menus available effective from Plaza-I version 2

File

Menu Function

(*C)Change processing object ①Select the default accounting period ②Change the company and branch to be processed when handling several companies.

Automatic Journal

Menu Function

Sales Transaction Entry Based on approved Sales Voucher of SOE, SVC, and PRJ, by referring to the settings of Automatic Journal Entry Master, the system creates GLS Journal Voucher (hereinafter called, transfer auto journal).

Inventory Transaction Entry【O】 From IVT Inventory Transaction, transfer auto journal.

Purchase Transaction Entry V2 From PUR Purchase Voucher, Purchase Related Expense, and Processing Acceptance Voucher, transfer auto journal.

Trichotomy Automatic Journal【O】V2

From IVT Inventory Balance F, transfer auto journal of transferring beginning and ending inventories. From IVT Inventory transaction, transfer auto journal of Transfer to other accounts.

Transfer auto journals of Cost of Sales based on Trichotomy (or Direct COS Method) by organization and Related Adjustment between organizations.

Cash Collection Transaction Entry From ARS Cash Collection transaction, transfer auto journal.

Cash Collection Voucher Entry From ARS Cash Collection Voucher, transfer auto journal.

(*S)POS Cash Collection Entry Approval

From POS Cash Collection Voucher, transfer auto journal.

A/R Transaction Entry From ARS A/R Transaction, transfer auto journal.

(*P) Notes Receivable Automatic Journal From ARS Notes Receivable, transfer auto journal.

(*P) Note Payable Automatic Journal From APS Notes Payable, transfer auto journal.

Project Transaction Automatic Journal From PRJ Project Transaction, transfer auto journal.

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Voucher Estimated Cost Automatic Journal

From SOE Sale Voucher and PUR Purchase Voucher, the system transfer auto journal of Estimated Cost / Accrued Expense.

(*C) Show Approval History Display a history of approval action, i.e., transferring auto journal.

Create Tentative Journal V2.01.05.00【O】

Transfer transactions subject to various auto journals but not auto-journalized to GLS as Tentative Journal.

Master

Menu Function

Automatic Journal Master Register user attributes such as Organization code for Automatic Journal Number and its detail number which are provided in advance by the system.

Automatic Journal Detail Line Attribute Determination Method Master

For each attribute of automatic journal line, you define how to set data.

Utility

Menu Function

(*C)Report Printer Setup Register the printer name and its paper size to be used for each Plaza-i report.

(*C) Excel Date Export Export a Plaza-i table to an Excel file.

(*C) Parameter Setup Specify the location, either local or server, to store such user information as print instructions parameter, how to display grid, where to show each form, and caption data, and download these information from the server.

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3. General Accounting and Sub-modules

Outline

▲ GLS as General Master • Under Plaza-i system, GLS functions as General (generalissimo or shogun) Ledger and controls

such accounting data as Sales Voucher or Purchase Voucher that each module (in Japanese, subsystem) of SOE or PUR creates.

• Specifically, each module provides transactional facts verifying the validity of journal entry for a specific account on GLS trial balance (T/B) in the form of the source or reference voucher while GLS fulfills a role to guarantee the integrity of Plaza-i system as a whole by assuring debit and credit agreement of all accounts on T/B which is further supported by balance reconciliation procedures.

• As such, sales, purchase, cash collection, cash disbursements, etc., that represent important transaction stream on T/B must be reconcilable with each module (to secure audit trail).

▲ How is JNL module positioned? • JNL module firstly plays a role to define how accounting data of each source vouchers should be

converted to a journal voucher so that it can be accepted by GLS.

⇒ You define it at Automatic Journal Master of JNL Master menu.

⇒ At the above master, you also define GLS automatic journals such as Consumption tax exclusion journal or Common expense distribution journal.

• Next JNL actually transfers certain transactions from the source voucher to the journal voucher.

⇒ At Automatic Journal menu, you create accounting journal vouchers from Sales Voucher, etc.

⇒ This is a so-to-speak batch-type automatic journal recording function.

⇒ As described later, however, each module often calls auto journal program at the same time of approving various transaction.

▲ Auto Journal not using Automatic Journal menu • There are many automatic journals as follows that are not generated by JNL Automatic Journal menu

which is the second function of JNL module.

• APS

⇒ Payable Approval

⇒ Payment Execution

• ARS

⇒ Cash Collection Voucher Approval; however, you can batch-transfer automatic journal by using Cash Collection Voucher Entry of this module, which is default as it is developed first.

• Automatic Journals within GLS

⇒ Journal Entry - External Data Acceptance

⇒ Standard Journal or Reversal of Accrual Entry, etc.

⇒ Split Journal Entry

⇒ FC Translation, Common Expense Distribution, etc.

• Except for several automatic journal entries within GLS, you have to basically register Automatic Journal Master for all auto journals.

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Reconciliation between GLS and sub-modules

▲ The goal is to fulfill the control objective that business data maintains its integrity as a whole. • One of the must processes of monthly closing is to reconcile GLS module with sub-modules to make

sure that data between both sides has no discrepancy.

• At the same time, whether reconciliation is performed on an entire sub-module basis (macro) or on a transaction basis (micro) is also an important factor.

• In terms of control, you also need to pay attention to the type and volume of sub-module transactions that will be bundled into one journal voucher to be created, i.e., how the relationship of journal voucher and source voucher is defined.

• This paragraph addresses the reconciliation method and how to set it up.

▲ Make sure to set up Sub-system Accounts. • GLS module is able to set such a control to block Journal Voucher Entry from entering accounts

which are controlled by sub-modules with having them marked as Sub-system Account.

• Thanks to this control, since there will be no manual entry journals set with Sub-system Accounts, even if automatic journals are generated on a one-to-one basis, performing reconciliation will relatively be easy.

• In order to improve the control, as described at GLS Master (Chap), Account Master Setup Guide (Sec), you should set such Sub-system Accounts.

▲ Timely reconciliation is also possible. • Using Tentative Journal explained later, you can perform reconciliation as of this date and time even

before the month end.

Relationship between Journal Voucher and Source Voucher

▲ One-to-one on a real time basis • In Plaza-i, as cash and bank accounts (cash) are controlled by GLS, an automatic journal relating to

cash is generated one-to-one against its source voucher whenever it is approved without using this module.

• Namely, at each time of ARS Cash Collection Voucher Approval for cash collections and APS Payment Execution for cash disbursements, the system creates auto journal.

• Incidentally, APS Payable Approval also transfers auto journal on a one-to-one basis as the payment side creates it one-to-one on a real time basis

• This is another and additional information but Payment Execution basically creates auto journal per each payee as it is a unit of the execution; however, it can generate one payment journal considering the multiple bank transfer.

▲ JNL Automatic Journal can create many-to-one auto journal • As an auto journal created by JNL module is on a batch basis, in many cases, it has a capability to

summarize many source vouchers into one journal entry.

⇒ There are some auto journals, however, such as Cash Collection Voucher Entry, which support only one-to-one auto journal.

• For such enormous transactions as sales, purchase, and inventories, rather than journalizing them on a one-to-one against the source voucher, summarizing them per month, week, or a day into one journal is considered to have a merit when controlling them at GLS from the following viewpoints:

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⇒ It allows the accounting department to review the accounting data created by the business modules on a monthly basis, etc. including the analytical standpoint before creating the final accounting (journal) entry; in other words, it is considered to weaken the accounting controls if journal entries are being directly transferred unbeknownst to them; i.e., authorities cannot be transferred so far to the operational side or the accounting wants to place a buffer or a cushion.

⇒ Too many transactions make them hard to be reconciled; especially when adjustment entries are commingled, it becomes hard-to-review; as it is called, books become dirty.

⇒ When printing General Ledger (G/L), the pages become too many.

• In addition, some business practices do not allow adopting the real-time transfer method under the following situations.

⇒ You adopt such calculation methods as Purchase Related Expense Actual Distribution, Monthly Average Method, Depreciation Expense Entry, or Payroll that determine the results on a monthly basis or an after-the-fact basis, and thus, it cannot determine the amount on a real time basis.

⇒ As sales unit prices need to be changed after bill closing, you cannot transfer journal on a real time basis.

• If the above situation applies, you might use the batch transfer and summarization features provided by JNL module.

⇒ In general, after sub-modules side completes final closings, the accounting side checks them and transfers auto journal.

▲ JNL auto journal is capable of one-to-one transfer • It is basically possible even for JNL module to transfer auto journals by the unit of the voucher, i.e.,

on a one-to-one basis.

⇒ There are, however, some auto journals such as Purchase Transaction Entry and Trichotomy Automatic Journal that are only premised on a monthly summarized journal.

• Although it is not a real-time processing, by using JNL Automatic Journal menu, you can create one-to-one auto journal.

Journal Group

▲ Outline • GLS Journal Entry Number consists of a code within 3 bytes and a string within 11 bytes such as J-

08000154 or SOE-08000325.

• As explained at GLS Journal (Chap), Outline of Journal (Sec), this three-digit code is called Journal Group (Code), and you can assign different group code for each automatic journal entry (precisely speaking, per system function).

▲ Example of Journal Group • This journal group is optional but in many cases the codes like the following are generally used.

⇒ You can confirm which codes are actually assigned for your company at Automatic Numbering Group Relation Master by paying attention to records of which Automatic Numbering Object is Journal Voucher.

Code Source Voucher Sub-module Menu (System Function)

SOE Sales Voucher SOE SVC PRJ

Sales－Sales Voucher Sales－Sales Voucher N/A

ARR Cash Collection ARS Collection / Receivable－Cash Collection Voucher

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Voucher

ARZ A/R Transaction ARS Collection / Receivable－A/R Transaction Entry or FC Translation

APA Payable Voucher APS Payable－Payable Voucher (*1)

APP Payment Schedule APS Payment－Payment Method Inquiry

APZ A/P Transaction APS FC Translation

IVT Inventory Transaction DRS Inventory－Inventory Transaction－Inventory Transaction Entry

PUR

Purchase Voucher Purchase Related Expense Voucher Processing Acceptance Voucher

PUR Purchase－Purchase Voucher Entry Purchase－Purchase Related Expense Voucher Entry Purchase－Processing Acceptance

PIJ Inventory Balance DRS Inventory－Inventory Report－Inventory Balance List

J Journal Voucher GLS J or JIP is usually journal voucher manually entered.

JED omitted others

GLS Journal starting with J is usually automatic journal of GLS; e.g., JED is usually Journal Group assigned to automatic journal generated by Common Expense Distribution function.

• *1: Payable Vouchers are often transferred further from its sub-modules such as PUR, GPM, and EPS. Please look at APS Payable (Chap), Payable Entry Outline (Sec), A List of Sub-modules (Par).

▲ One-to-one vs. Many-to-one • If you are using Journal Group appropriately, as it is easy to distinguish automatic journal entries

clearly, it is expected to mitigate relatively such a negative factor that one-to-one automatic journal makes reconciliation difficult.

• Furthermore, at Account Analysis tab of Trial Balance Inquiry of GLS General Ledger menu, as you can see a total amount (and record count) by the journal group for a specific account, even if you adopted one-to-one automatic journal, you can easily confirm what types of journal group a specific account is comprised of and whether or not are there any journal of unexpected group such as those manually entered are commingled in that account (V2.00.35.9).

Reconciliation for Entire Sub-module

▲ Ensure sub-system account balances agree with corresponding balances in sub-modules. • This is one of the month-end close processes.

• Reconcile a balance of each sub-system account in GLS Trial Balance, etc. with a corresponding sub-system balance shown on a balance list provided by each sub-module at month end.

• For a reconciliation of the cost of sale that must be performed monthly, although this is not listed on the chart below, you should refer to, Trichotomy and Direct COS Method (Sec), Control (Par) of this chapter.

• Example of Sub-system Accounts

Account Transaction in sub-modules Menu items used for the purpose of reconciliation

A/R Advance received

ARS A/R Transaction ARS Collection / Receivable－A/R Balance List ARS Collection / Receivable－A/R Sub-ledger ARS Collection / Receivable－Detail Balance Report

Inventories DRS Inventory Transaction DRS Inventory－Inventory Balance List DRS Inventory－Inventory Ledger

Beginning DRS Inventory DRS Inventory－Inventory Balance List

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inventories Balance

Ending Inventories

DRS Inventory Balance

DRS Inventory－Inventory Balance List Beginning is a balance at a/c period while during the period and end, amounts are increase / decrease in inventory balances.

Transfer to other a/c’s

DRS Inventory Transaction DRS Inventory Transaction List

Work in progress Payments for uncompleted construction

PRJ Project Transaction

PRJ Purchase / Cost－Project Account Balance List PRJ Purchase / Cost－Project Ledger

Fixed Assets Depreciation

FAS F/A Transfer Transaction FAS Report－Summary of Depreciation Expense

A/P A/P-Other APS A/P Transaction

APS Reporting－Payable Balance List APS Reporting－Payable Detail Balance Report PUR Purchase Report－Purchase Summary by Payable Status

Sales SOE (SRP) Sales Voucher SOE / SVC / PRJ Sales－Sales Journal Listing

Purchase PUR Purchase Voucher PUR Purchase Report－Purchase Entry Journal Listing PUR Purchase－Purchase Related Expense List

Subcontractors’ Fee

PUR Processing Acceptance Voucher PUR Purchase－Processing Charge List

Collection Transaction*1

ARS Cash Collection Voucher

ARS Collection / Receivable－Cash Collection Voucher－List by Cash Collection Status

Disbursement Transaction*1

APS Payment Schedule

APS Payment－Payment Schedule List or Payment Journal List For data linkage, see History of Payment Execution

• *1: Although they are not Sub-system Accounts, as it can explain a relationship between important transaction stream and documents providing audit trail at sub-module side, they are included here.

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Reconciliation on a Transaction Basis

▲ When you wish to perform check on a transaction basis, drill down to source vouchers. • In case of transferring auto journal on one-to-one basis, however, apart from whether or not it is

always necessary and in addition to the above monthly reconciliation, you may occasionally need to verify reconciliation between GLS and sub-module on a transaction basis.

• In response, we illustrate here how you can trace GLS Journal Voucher back to such source record as Sales Voucher in order to check it with the accounting transaction maintained by the sub-module.

▲ Drill down from Sub-system Account at Trial Balance → General Ledger → Journal Entry → Source Voucher. • From T/B of GLS Ledger menu to G/L (General Ledger Inquiry) and to Journal Entry, for not only

automatic journal but all journal entries, you can trace back them by clicking button of each screen.

• Lastly, by clicking Source Voucher button from History of Journal tab of Journal Entry, you can open the source voucher form.

• As for the automatic journal that supports the function to open source vouchers, refer to GLS Journal (Chap), Journal Entry (Sec), Journal History tab (Par).

▲ Many-to-one journals are also supported. • In case of a journal voucher generated from multiple source vouchers, you can jump to a list style

form, such as Sales Detail Inquiry.

• Whether one-to-one or many-to-one is determined by the number of source vouches from which one journal voucher has been generated, not by whether source vouchers are collectively auto journalized.

▲ You can jump to source vouchers from the following forms as shown below.

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Sub-module Forms that are currently open Source voucher screen that will open

APS Payable Approval APS Payable Voucher Entry

ARS Cash Collection Transaction Suspense Received AJ ARS Cash Collection Transaction Data Edit (*1)

JNL

Accounts Receivable Transaction Entry ARS A/R Transaction Entry

Project Transaction Automatic Journal PRJ Project Transaction Entry (V2.01.37)

Voucher Estimated Cost Automatic Journal

In case of a one-to-one relationship, PUR Purchase Voucher Entry or SOE Sales Voucher Entry opens. In case of a many-to-one relationship, PUR Voucher Estimated Cost Inquiry opens.

Cash Collection Voucher Entry ARS Cash Collection Voucher Entry

Inventory Transaction Entry

In case of a one-to-one relationship, DRS Inventory Transaction Entry opens.

In case of a many-to-one relationship, DRS Inventory Transaction Detail Inquiry opens.

Sales Transaction Entry

In case of a one-to-one relationship, SOE Sales Voucher Entry (*2) or SVC Sales Voucher Entry (V2.01.60) opens.

In case of a many-to-one relationship, Sales Detail Inquiry (*3) opens.

PNS

Notes Payable Automatic Journal APS Notes Payable Entry

Notes Receivable Automatic Journal ARS Notes Receivable Entry

• (*1): In case of a many-to-one journal, the header search form opens with the corresponding journal specified for the search range.

• (*2): Currently, when the source voucher is PRJ Sales Voucher, it is shown in SOE Sales Voucher Entry.

• (*3): You need access authority to either SOE, SRP, or SVC Sales Detail Inquiry (V2.01.60).

⇒ As for the settings of form size and parameter saving function in inquiry screens, etc., the first priority is SRP, the second is SOE, and the third is SVC (V2.01.61).

▲ Restrictions when carrying out processing beyond company and branch (V2.01.61) • When Option by Company GLS Accounting Unit Process Option is set to [Process beyond company]

or [Process beyond branch], although it is possible to jump to a source voucher belonging to a company or branch different from the current processing object, please be aware of the following:

• Upon drilling down to a source voucher of another company or branch, the current processing object will stay changed in the form. If you wish to change it back to the previous one, conduct Change All Processing Objects or restart Plaza-i.

▲ 【Example】APS Payable Approval • Taking A/P-APS account as a typical example of sub-system accounts, we explain how you can

trace back with Source Voucher button from GLS Journal Voucher to APS Payable Voucher and to PUR Purchase Voucher.

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• GLS Journal Voucher

▲ APS Payable Voucher

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Tentative Journal Voucher (V2.01.05.00)

▲ Apart from Journal Voucher, Tentative Journal can be transferred to GLS • In case the amount cannot be fixed until the month end and thus auto journal cannot be transferred

▲ PUR Purchase Voucher

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on a real-time basis, there occurs a significant time difference between the accounting and the sub-modules.

• In this case, you can create tentative journals based on the source vouchers for which auto journal has not been transferred and can transfer them to GLS.

⇒ Normally, by using a night job scheduling, into a table called Tentative Journal separate from Journal Voucher, you can transfer Tentative Journal for the current month up to the day with replacing those transferred up to yesterday.

⇒ This feature, however, does not support all auto journals and those at GLS side that can count such tentative journals into account are limited to some menu items such as T/B.

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4. Option by Company

ARS Automatic Journal Client Code Process Status: AUTJNLCLTPRCST

▲ Purpose • By using this ARS option, for auto journal #140 Sales Transaction and #150 Cash Collection Voucher,

rather than Customer Code of Sales Voucher or Cash Collection Voucher, you can set Client Company Code to Journal Voucher by referring to Client Master via Customer Code.

• Refer to ARS Outline (Chap), Option by Company (Sec) for details.

• Note: This is not an option of JNL.

▲ Options • 1: Use customer code (default)

• 2: Use client company code

JNL Inventory Trichotomy - Cost of Sales Check Status: PURIVTJNLCOSCHK

▲ Purpose • In case COS (Cost of Sales) per Trichotomy by Organization does not agree with COS per Direct

COS Method, you specify how to notify it.

▲ Options • 1: No check (Default)

• 2: Warning if out-of-balance

• 3: Error if out-of-balance

JNL Inventory Trichotomy- Journal Creation Method Status: PURIVTJNLCRTMTD

▲ Purpose • You specify how to make a journal by Trichotomy Method.

• For details, see JNL Automatic Journal (Chap), Trichotomy Automatic Journal (Sec).

▲ Options • 1: No Trichotomy - Use Direct Cost of Sales Method

⇒ Default

⇒ Inventory Transaction Entry of JNL Automatic Journal menu becomes visible.

• 2: Mixed Trichotomy in a fixed Organization.

⇒ Using the organization code set in Automatic Journal Master, Trichotomy journal is made.

• 3: Trichotomy by Organization.

⇒ Using the organization code set in Company Warehouse Master, Trichotomy journal is made. If it is blank, the organization code set in Automatic Journal Master is used.

⇒ You can adopt this option when you manage warehouse (a place to hold inventory) by organization.

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⇒ You can use this option together with Option by Company JNL Inventory Trichotomy – Cost of Sales Check Status.

▲ Effect • When selecting 2 or 3, in JNL Automatic Journal menu, Trichotomy Automatic Journal is shown and

Inventory Transaction Entry disappears.

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5. Trichotomy or Direct COS Method

Outline

▲ Foreword • There are two methods in accounting as to how COS (Cost of Sales) should be journalized:

Trichotomy (or Inventory Method) and Direct COS Method. The Plaza-i system supports both methods.

• For Trichotomy, you will choose between the following two:

⇒ Mixed Trichotomy (This is Trichotomy by our original method) ∗ The system combines Trichotomy on the entire company (or common department) basis

with Direct COS for each organization

⇒ Trichotomy by Organization ∗ The system creates Trichotomy auto journal per Organization based on the inventory

balance by the warehouse. In addition, when items are sold from a warehouse of the other organization, the system automatically creates a transfer journal between the organizations.

∗ Also, Trichotomy auto journal can be generated per Project Organization (V2.01.28). ∗ For more information, please see JNL Automatic Journal (Chap), Trichotomy Automatic

Journal (Sec).

• The Plaza-i system supports Direct COS Method as an ordinary bookkeeping method of Direct COS Method.

• This section explains 1) Trichotomy in a pure accounting sense, 2) Direct COS Method, 3) Transfer to other accounts required to reclassify presentation on financial statements (F/S), and 4) Mixed Trichotomy which is a basic method when using Trichotomy in Plaza-i.

• As they are concepts covering JNL Sales Transaction Entry, Inventory Transaction Entry, Purchase Transaction Entry, and Trichotomy Automatic Journal, and PUR Payable Transfers for Purchase / Purchase Related Expense / Processing Acceptance, we explain them all together at this Outline (Chap).

▲ Trichotomy • You journalize COS using the following three accounts.

⇒ ① Beginning Inventories

⇒ ② Purchase for the current period

⇒ Sub-total ①＋②

⇒ ③ Ending Inventories

⇒ Net: COS (①＋②－③)

• For ①, at the beginning of FY, you make a following entry once a year.

⇒ ① Beginning Inventories (PL) / Merchandise (BS)

⇒ Plaza-i makes this FY beginning entry, as detailed later, as part of Trichotomy Automatic Journal of JNL Automatic Journal menu.

• For ②, it should be journalized based of Purchase data.

⇒ ②Purchase (PL) / Accounts Payable (A/P)

⇒ Plaza-i supports two methods: Journalize at A) APS Payable Approval: Purchase Voucher→Payable Transfer→APS→Payable Approval, and B) JNL Purchase Transaction Entry: it makes a journal entry not at Payable Approval but at Purchase Transaction Entry of JNL Automatic Journal menu.

• For ③, you must make a journal entry like the following at end of each month for the difference with

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the beginning of the month.

⇒ Merchandise (BS) / ③ Ending Inventories (PL)

⇒ At the end of the beginning month of FY, as there is no previous month, you journalize the amount at end of month as it is.

⇒ For the following months thereafter, if the merchandise increases you enter plus amount while if it decreases you enter minus amount.

⇒ Plaza-i also automatically journalizes the difference amount (in case of decreasing with negative amount) as part of Trichotomy Automatic Journal of JNL Automatic Journal menu.

⇒ If you would not like to use such negative or difference amount, you have to enter it manually by reversing the previous month end journal and entering the current month balance.

▲ Direct COS Method • Present COS with one line.

⇒ While Trichotomy shows COS with the format of ①＋②, sub-total, and net ③, Direct COS Method does not use such three accounts but use only one account of Cost of Sales (COS).

• For purchases for the current month of ② , you make a journal like Trichotomy but you use Merchandise account for the debit account.

⇒ Merchandise / A/P

• When a sale is made, the following entry is made.

⇒ COS / Merchandise

⇒ Plaza-i journalizes the above amount with the line of COS created by Sales Transaction Entry of JNL Automatic Journal menu.

• All the transaction of inventories other than Purchase and Sales must be journalized.

⇒ Physical Taking Loss / Merchandise ∗ When the physical inventory taking found any unknown losses, it means that only inventory

shipments occur without any sales.

⇒ Advertizing Expense / Merchandise ∗ When you shipped certain merchandise as a sample, it also means that only inventory

shipment occurs without any sales.

⇒ Plaza-i journalizes the above transaction with Inventory Transaction Entry of JNL Automatic Journal menu. ∗ As described later, even for Trichotomy, in case the inventory is transferred to such

accounts other than COS as advertisement, this entry is automatically journalized with the credit of Transfer to other accounts A/C.

Transfer to other accounts

▲ Outline • As noted above, under Trichotomy, as journalizing the ending inventories, COS is calculated just as

a difference.

• As a result, without doing nothing, not only shipments relating to the cost such as physical inventory-taking loss, but also other shipments for purposes other than sales such as sample shipments are commingled in COS.

▲ Transfer to other accounts A/C • In response, in order to reclassify such inventory increase or decrease (basically only decreases)

that cannot be included in COS as the following, to the other category in P/L (Income Statement), you need to make a journal entry using the account code called “Transfer to other accounts” which

Plaza-i JNL Outline

1-19

is one of detail accounts within COS.

⇒ Transfer shipments of sample items to Advertisement Expense which belongs to SGA (Selling, General, and Administrative Expenses) since it is to promote sales.

⇒ As an inventory-taking loss this time is unusual due to a natural disaster, it should be reclassified to Non-Operating Expense or Special Loss.

• Journal entries look like the following:

⇒ Advertisement Expense / Transfer to other accounts

⇒ Inventory-taking Difference (Non-operating Expense) / Transfer to other accounts

• In the above Trichotomy journal, some argue that the credit should be Purchase A/C and that the related amount should be presented only on P/L; however, this system uses actual account balance figure to present F/S, you must make a journal entry by using A/C called ‘Transfer to other accounts’.

▲ Direct COS Method • As Direct COS Method does not record, theoretically, any accounts other than COS, you do not need

such accounts as Transfer to other accounts.

• I may add that you are supposed to use a sub-account of COS for ordinary inventory-taking loss.

Mixed Trichotomy

▲ Outline • In case of managing P/L by department (by Organization in Plaza-i) and if you can manage

inventories by Organization, you can apply Trichotomy by Organization.

⇒ Relatively many trading companies take such management approach. ∗ JNL Trichotomy Automatic Journal supports Trichotomy journal by Organization.

• On the contrary, in case inventories are held commonly by sales departments, as sales are recorded by Organization but inventories cannot be divided into it, there are no choices but Direct COS Method.

• When presenting P/L, however, especially for Japanese corporations, Trichotomy is pretty common; therefore, in such a case you need to submit T/B monthly to your bank, while using Trichotomy accounts on the whole company basis, you use Direct COS Method for P/L by Organization, which we call Mixed Trichotomy that we recommend when using Plaza-i.

▲ Image of P/L by Organization

Dept A Dept B ………. Common Dept Company

Total Remarks

Sales 20,000 25,000 0 45,000

①Beg Inventories 1,000 1000

②Purchase 25,600 25,600 From Purchase Voucher

④COS 10,000 15,000 △25,000 From COS portion of Sales Journal Listing

⑤Trans to other △100 △100 From Inventory Transaction

③End Inventories 0 1,500 1,500

Net COS 10,000 15,000 0 25,000

Gross Margin 10,000 10,000 0 20,000

Direct COS Method

Plaza-i JNL Outline

1-20

• This is an image of P/L spreading departments (Organizations) horizontally.

• At Company Total column, it is Trichotomy.

• For the columns of revenue departments such as A and B, Direct COS Method is applied and proper gross profits are reported. Under Direct COS Method, amounts of Sales and COS accumulated from Sales Voucher Detail exactly agree with those of T/B.

▲ Explanation of Accounts and Setup Image • While ① through ③ are accounts used by Trichotomy, it is characterized by that all of them use

common department (Organization used for B/S).

• For ④, Plaza-i make a journal by using COS field of Sales Detail, and the same account (COS) is assigned for both debit and credit but the organization for the credit is always the common department.

⇒ In the above example, an entry is Debit: A Dept 10,000, B Dept 15,000 / Credit: Common Dept 25,000 with the same account of COS for both debit and credit.

• ⑤ As Trichotomy is used at the common department, you need to transfer such accounts as Advertisement Expense to the other category of P/L using Transfer to other accounts A/C.

⇒ Plaza-i uses the account code set for Item Control Status Master to assign the credit of COS recorded by ④ Sales Journal and the credit of a transfer transaction recorded by ⑤ specific Inventory Transaction; this time, paying attention to the part of ④, we use the account code of COS for the explanations thereafter.

⇒ As it is journalized from Inventory Transaction, the account code set for Inventory Transaction Code is used for the debit while the credit is COS as explained above.

⇒ While a normal physical inventory-taking loss should be normally included in COS rather than Transfer to other accounts, but pursuant to the above if you set COS for Inventory Transaction Code, an entry of Dr. COS / Cr. COS will be journalized; therefore, it may be considered one of the transfer transactions categorized as ⑤, especially from the system perspective.

⇒ As such, if the balance remains for COS account on F/S of the company total, it should be Transfer to other accounts, and so, you may be able to assign “Transfer to other accounts” as its presentation name for the account of COS when you define F/S format at Account Summary Group Master of GLS Setup menu.

Trichotomy: Trichotomy by Organization and Mixed Trichotomy

▲ The following explains Mixed Trichotomy instead of Trichotomy • As noted from the above explanation, as it is common to introduce GLS and record sales by

organization using JNL, unless you adopt Direct COS Method, you use Mixed Trichotomy or Trichotomy by Organization.

• As Trichotomy by Organization is a method of making auto journal for inventories by organization with associating each warehouse to a specific organization without using the common department, it is considered a simple Trichotomy but developed further by organization.

• To the contrary, Mixed Trichotomy becomes a little complicated in terms of its logic and control method, etc. since it uses the common department.

• Accordingly, we explain not Trichotomy but Mixed Trichotomy and Direct COS Method, and Trichotomy by Organization if necessary.

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1-21

Setup

▲ How to determine accounts

Dr/Cr How to determine account Auto Journal Mixed Trichotomy

Direct COS Method

Purchase for the month

Debit

A/C-Sales/Purchase of ① Sales/Purchase Account Related Master of MST Other, which is a multiplied combination of Item Transaction Status and Item Control Status.

PUR: ③Three kinds of Payable Transfer ＋ APS: Payable Approval

Purchase Import Purchase etc.

Inventories

Credit Supplier→② Payable Status of Payee M A/P

Processing charge incurred

Debit A/C of Processing Type Master of PUR Setup Processing Charge Inventories


Purchase Related Expense

Debit A/C of Purchasing Cost Transaction Master of PUR Setup Import Charge Inventories


Sales part of Sales Journal

Debit ② Receivable Status of Customer M and A/R/Adv Rec’d Status

JNL: ④ Sales Transaction Entry

A/R

Credit

A/C-Sales/Purchase of ① Sales/Purchase Account Related Master of MST Other, which is a multiplied combination of Item Transaction Status and Item Control Status.

Sales

COS part of Sales Journal

Debit

A/C-COS of ① Sales/Purchase Account Related Master of MST Other, which is a multiplied combination of Item Transaction Status and Item Control Status.

COS

COS

Credit A/C Code Inventory of Item Control Status Master of MST Item / Inventory menu COS

Inventories

Transfer to other accounts

Debit A/C of Inventory Transaction Code Master of DRS Setup menu JNL: ⑤Inventory Transaction Entry

Advertisement, etc.

Credit A/C Code Inventory of Item Control Status Master of MST Item / Inventory menu COS Inventories

• ①: The above Sales/Purchase Account Related Master determines account (A/C) code by the multiplied combination of Item Transaction Status and Item Control Status; further, if you take into account of Item Summary Code, you set Option by Company and register Sales/Purchase Item Summary Account Related Master. For details, please refer to Outline (Chap) of SOE and PUR, respectively, Option by Company (Sec).

• ②: For Payable or Receivable Statuses to determine the credit account for Payable Entry and the debit account for Receivable Entry, respectively, as there are some other options available such as using settings of Organization Master or Sale Type Master, you refer to CMN Administrator (Vol), Payable Status (Sec) or Receivable Status (Sec).

• ③: Three kinds of Payable Transfer represent the following three menu items belonging to PUR Purchase menu.

⇒ #110: Purchase Payable Transfer

⇒ #112: Processing Charge Payable Transfer

⇒ #111: Purchase Related Expense Payable Transfer

⇒ The above # represents Auto Journal Number of Automatic Journal Master.

⇒ For how to setup Automatic Journal Master, you should see Setup (Par) of the section corresponding to each menu item. Basically, as the account is determined based on the above sheet, you register only account codes for suspense paid consumption tax, etc.

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⇒ As described previously, since JNL Purchase Transaction Entry can create a journal of Purchase (Processing Charge / Related Expense) / A/P at month end collectively, you do not necessarily have to use the route of PUR Payable Transfer→APS Payable Approval.

• ④: While basic account codes are determined based on the above sheet, it is possible at Auto Journal #140 to make various setups including the summarization method. For details, see JNL Automatic Journal (Chap), Sales Transaction Entry (Sec).

• ⑤: For details such as the type of automatic journal (determination of debit and credit), please see JNL Automatic Journal (Chap), Inventory Transaction Entry (Sec).

▲ Inventory Transaction Code Master • Inventory Transaction Journal Necessary Status

⇒ For Transfer to other accounts in the above sheet, at Inventory Transaction Code Master of DRS Setup menu, you should certain to mark Inventory Transaction Necessary Status ON and set Account Code properly.

⇒ Whether you adopt Mixed Trichotomy or Direct COS Method, for the inventory transaction codes corresponding to ①Purchase for the month and ②COS part of Sales Journal, since auto journal are already generated, you should not mark this status ON.

⇒ For the other transaction codes, you should basically mark this status ON.

• Identify Inventory Transaction Code relating to ① Purchase for the month the necessary status of which should not be marked

⇒ For Purchase Voucher created by Stock-in/out Confirmation for Stock-in/out Voucher generated by P/O (Purchase Order) Voucher further created by Sales Order Approval, Inventory Transaction Code has been copied from Ship-To Inventory Transaction Code of Stock-In/out Type Master referenced by Stock-in/out Type posted from that registered in Procurement Facility Item Master further referenced from the purchase item code.

⇒ For Stock-in/out Voucher generated by P/O Confirmation for manually entered P/O, Stock-in/out Type is posted from Purchase Type Master referenced from P/O Type.

⇒ Normally, as these Stock-in/out Types are Domestic Purchase or Import Purchase, etc., you can confirm them at Inventory Transaction Codes registered in Stock-in/out Type Master of DRS Setup menu.

• Identify Inventory Transaction Code relating to ② COS the necessary status of which should not be marked

⇒ As Ship-From Inventory Transaction Code of Stock-in/out Type of Stock-in/out Voucher generated by Sales Order is posted to Inventory Transaction details of shipment type created by Stock-in/out Confirmation, you should confirm Stock-in/out Type registered for Sales Type Master referenced from Sales Order Type.

⇒ For Sales Voucher Approval, Stock-in/out Type is also taken from Sale Type Master.

• ③ Identify which Inventory Transaction Code should be for inventory transaction of transfer type

⇒ Except for the above ① and ②, for such Inventory Transaction codes of transfer type as Transfer Shipment or Transfer Receipt, you mark Inventory Transaction Journal Necessary Status ON.

⇒ In case of using Mixed Trichotomy, you should set such an independent account as COS-Stock-in/out Difference to Account Code as part of COS. ∗ As Plaza-i is principally designed to make the shipping amount of transfer shipment agree

with the receiving amount of transfer receipt, the balance of this account should become zero.

∗ If you noted the difference, as there is a possible error in processing or setup, you should examine the inventory transaction code by reviewing Inventory Transaction List of DRS

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Inventory menu.

⇒ In case of using Direct COS Method, you should set a single account such as Merchandise (Inventories). ∗ If you use different account codes per Item Control Status such as Merchandise / Finished

Goods (F/G) / Raw Material (R/M), etc., you cannot transfer accounts between them at Inventory Transaction Entry auto journal unless you separate Inventory Transaction Codes per Item Control Status, which is not considered practical especially when Item Control Status is many.

∗ In case of using Mixed Trichotomy, as ending Inventory amounts are directly journalized, this problem does not occur.

• ④ Other Inventory Transaction Code

⇒ For Inventory Transaction codes other than the above ①Purchase for the month type, ② COS type, ③ Transfer type, you must always set Inventory Transaction Journal Necessary Status ON and assign appropriate account code such as Advertise Expense or Inventory-taking Loss.

⇒ For Purchase Return, both for Mixed Trichotomy and Direct COS Method, normally, you should set such account as Purchase Return as part of COS. For details, see PUR Purchase (Chap), Input Example of Purchase Voucher Entry (Sec), Purchase Return.

Purchase Related Expense

▲ Outline • In case you use Purchase Related Expense Entry of PUR Purchase menu when handling import

charges, etc. and they are important for your business, for Mixed Trichotomy, you should register such accounts as Import Charges and Custom Duty to handle Purchase Related Expense as sub-account of COS (Purchase).

⇒ Depending on its materiality, you may register only one account like Import Charges.

▲ Journal at the accrual side • Mixed Trichotomy

⇒ Purchase Related Expense / A/P

• Direct COS Method

⇒ Merchandise / A/P

▲ COS Part of Sales Journal which is the absorption side • Mixed Trichotomy

⇒ COS / COS ∗ If you perform Purchase Related Expense Actual Distribution, Purchase Related Expense

portion becomes included in the above journal amount.

• Direct COS Method

⇒ COS / Merchandise ∗ Unless you perform Purchase Related Expense Actual Distribution, as nothing but the body

amount is included, accrued amount cannot be absorbed.

▲ Purchase Related Expense Actual Distribution • Mixed Trichotomy does not always require this Actual Distribution if you make a manual journal entry

in GLS allocating Purchase Related Expense incurred for the month between COS and ending inventories based on their ratio.

⇒ If Purchase Related Expense incurred for the period is not material, you may omit such allocation on a monthly basis but allocate it only at year-end for the purpose of tax.

• In case you adopt Direct COS Method and you wish to allocate Purchase Related Expense for month-end inventories, as long as you debit Merchandise at the accrual side, you must always

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1-24

perform Actual Distribution.

• Namely, as this system determines account code both for accrual and absorption side by using A/C Code set in Item Control Master, in case of adopting Direct COS Method, you must perform Purchase Related Expense Actual Distribution with paying attention to the accounting period.

• That is, you should establish ① operational procedures to absorb all Purchase Related Expense accrued for the current month and complete ② setup that you do not use Merchandise account for Purchasing Cost items not subject to the distribution are necessary.

Purchase Price Variance

▲ Outline • This paragraph explains how you can recognize Purchase Price Variance in case of using Standard

Cost Method in relation to Mixed Trichotomy and Direct COS Method.

• Incidentally, Purchase Price Variance (PPV) can be analyzed by Purchase Price Variance Report of PUR Purchase menu - Purchase Related Expense Report.

▲ Mixed Trichotomy

Actual Standard PPV Common Dept Remarks

Purchase 12,000 12,000 From Purchase Voucher

① COS 10,000 △10,000 From COS part of Sales Journal

PPV 2,000 2,000

② COS 9,000 △9,000

Ending Inventory 1,000 △1,000

PPV 2,000

• We use an example that Purchase for the month is actual 12,000 and standard 10,000, resulting in PPV 2,000.

• Purchase amount of 12,000 is always journalized by Purchase Voucher as actual and is recorded for Common Dept in case of Mixed Trichotomy.

• ① represents a case that all items were sold and ending inventories were zero: while COS is 10,000 at the standard cost and debited to various organizations, its credit is minus 10,000 at Common Dept. Therefore, a total of Common Dept agrees with PPV.

• ② represents a case that 10% of the purchase, which is 1,000, remained as inventories; similarly, COS and ending inventories are credited at Common Dept; as result, a sum of Common Dept becomes 12,000－9,000－1,000＝2,000, agreeing with PPV.

• As such, in case of using Mixed Trichotomy, in addition to Transfer to other accounts, Purchase Price Variance is included as an element of COS for Common Dept.

▲ Direct COS Method • As Standard Cost Method in this system is so-called single plan that assigns standard cost from at

time of purchase (receipt), it is not compatible with Direct COS Method which assumes recording actual purchase amount from Purchase Voucher by debiting Merchandize account.

• By setting PPV, however, for debit account to record actual amount of Purchase Voucher, and on the other hand, by setting Inventory Transaction Necessary Status ON for recording Inventory Purchase transaction and PPV for A/C Code, a journal entry of Merchandise / Purchase Price

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1-25

Variance will be recorded in the standard amount from Inventory Transaction Entry; as a result, there is a possibility that a net of 2,000 will be properly recorded for PPV (you should verify it before use if necessary).

Control

▲ Reconciliation between Sales and Gross Profit • Generally speaking, you should structure appropriate internal system so that the side of sales (or

operation to support sales) checks fully adequacy of sales and gross profit amount of Sales Voucher.

⇒ For example, comparing Sales or Gross profit with its budget

⇒ Reviewing Sales Detail List on a timely basis whether or nor any unusual gross profit is included

• Although this is not a main subject of this chapter, depending on the evaluation of the control environment such as a trading company, etc. where logistics function is not separated, you should consider strengthening such detective controls.

⇒ The above check of gross profit is done by staff capable of such review on a daily basis.

⇒ Physical inventory taking is stringently done under supervision of H/O (head office).

• Next, the accounting department should reconcile Sales and COS data which was operationally checked by the sales department using SOE with Trial Balance (T/B).

⇒ Sales amount must be definitely agreed.

⇒ COS must be agreed as well but as noted before Trichotomy does not normally match.

⇒ In case of Mixed Trichotomy, reconciliation by organization is easy but there could be differences in Common Dept.

⇒ If it does not agree, you should perform Reconciliation with Inventory Transaction, etc. (Par) next explained.

⇒ Furthermore, JNL Trichotomy Automatic Journal checks any disagreement in COS calculated by between Trichotomy and Direct COS Method. Please see JNL Automatic Journal (Chap), Trichotomy Automatic Journal (Sec).

▲ Reconciliation with Inventory Transaction, etc • Try to reconcile increase and decrease amounts for the month in the inventory transactions,

especially between amounts shipped and COS.

• If the amounts shipped include items other than the sale, you should determine whether they agree with Transfer to other accounts, etc.

• In case of Mixed Trichotomy, you should analyze and reconcile a total amount incurred at the common department, by using Inventory Transaction Detail Inquiry or Inventory Transaction List of DRS Inventory menu and determine any unusual transactions have not been included.

⇒ At Mixed Trichotomy, you should be careful if you set Inventory Transaction Journal Necessary Status OFF for such transactions as ③ Transfer type and ④ Other type as described at Setup (Par) and if there occurred any differences, it would become very difficult to analyze them as they would have been commingled in the total of the common department.

• In case of Direct COS Method, although you may tend to forget it as there occur no difference principally, you should never fail to perform the reconciliation between the amounts shipped and COS explained first.

• If you have any purchase returns, as documented at PUR Purchase (Chap), Input Example of Purchase Voucher Entry (Sec), by using Purchase Inventory Reconciliation Report of PUR Inventory menu, etc., you should determine there is no material difference caused by the purchase return.

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Which method should I adopt?

▲ Direct COS Method • In case foreign corporations where COS is presented on P/L in a single line such like Cost of Goods

Sold, i.e., not using Trichotomy, you should adopt Direct COS Method in general.

• In addition if your inventory account consists of only merchandise, by making all inventory transactions journalized, Direct COS Method could be adopted.

• If you cannot adopt Mixed Trichotomy but you want financial statement output in Trichotomy for operational specifications, you can enable output in Trichotomy by adopting Direct COS Method and making a transfer journal entry.

⇒ For more information, please see GLS Journal (Chap), Input Example of Journal Entry (Advanced) (Sec), Transfer Financial Statement Output from “Direct COS Method” to “Trichotomy” (Par).

▲ Trichotomy by Organization • At trading companies, etc., in case merchandises being handled are completely separated by the

organization and it is possible to separate the warehouse by the organization as well, you will adopt this method.

• In case inventories are rarely sold by a different department

• Further, in case you wish to adopt Trichotomy presentation even on Income Statement by Organization of GLS Reporting menu

▲ Mixed Trichotomy • Inventories are held by the entire company and the organization is established for each sales

channel or region, etc.

• Profit and loss by organization is managed at SOE (SRP) Sales Report menu, and analyzing gross profit by Item, by Customer, by Rep and Organization is fully performed.

• SGA expenses are also controlled by organization, and thus, GLS Income Statement by Organization is also important.

• Monthly T/B submitted to the bank must be presented in Trichotomy method judging from the past experience.

• In the above cases, you will adopt Mixed Trichotomy.

Plaza-i JNL File

2-1

Chapter 2 File

▲ Please refer to CMN Common System (Vol).


1

Chapter 3 Automatic Journal

CHAPTER 3 AUTOMATIC JOURNAL ................................................................................................... 1

1. OUTLINE ............................................................................................................................................ 2 2. COMMON OPERATIONS AND RESTRICTION ........................................................................................... 8 3. SALES TRANSACTION ENTRY ............................................................................................................ 19 4. INVENTORY TRANSACTION ENTRY ..................................................................................................... 26 5. PURCHASE TRANSACTION ENTRY ..................................................................................................... 32 6. TRICHOTOMY AUTOMATIC JOURNAL .................................................................................................. 47 7. CASH COLLECTION TRANSACTION ENTRY .......................................................................................... 69 8. CASH COLLECTION VOUCHER ENTRY ................................................................................................ 76 9. ACCOUNTS RECEIVABLE TRANSACTION ENTRY .................................................................................. 82 10. PROJECT TRANSACTION AUTOMATIC JOURNAL ................................................................................ 86 11. VOUCHER ESTIMATED COST AUTOMATIC JOURNAL .......................................................................... 92 12. CREATE TENTATIVE VOUCHER ........................................................................................................ 97

For the following menu item, please see POS Management (Chap).

POS Cash Collection Entry Approval For the following menu items, please refer to the corresponding section of PNS Notes Management.

Notes Receivable (NR) Automatic Journal PNS Notes Receivable (Vol), NR Entry (Chap), NR Automatic Journal (Sec)

Notes Payable (NP) Automatic Journal PNS Notes Payable (Vol), NP Entry (Chap), NP Automatic Journal (Sec)

For the following menu items, please refer to CMN Common System (Vol), Other (Chap).

Show Approval History


2

1. Outline

Foreword

▲ Automatic Journal menu • Operation method and Restriction on such forms as Sales Transaction Entry, Inventory Transaction

Entry, and Cash Collection Voucher Entry under Automatic Journal menu are quite similar.

• As you normally use several forms of Automatic Journal menu such as sales and inventory, by understanding them collectively in this or the next section, you will able to execute required processes without any error and very efficiently.

▲ Summarizing source vouchers into a one journal • As explained at JNL Outline (Chap), General Accounting and Sub-modules (Sec), this JNL module,

not all though, can summarize several source vouchers such as Sales Voucher into one journal entry.

• In order to summarize the header of source vouchers into one journal, you should specify Auto Journal Numbering Unit Code of Automatic Journal Master of JNL Master menu, and you should specify Detail Line Summarization Method Code in the detail section of the same Automatic Journal Master in order to summarize the detail lines of source vouchers.

▲ When it does not work • As usual, by confirming Setup (Par) of this section or the section corresponding to each menu item,

you should make sure you have completed proper setups.

• Please check common specification and restriction, and explanation for various errors presented at the next section of this chapter where mistakes often made are described together.

Setup

▲ Account Master • As explained at JNL Outline (Chap), General Accounting and Sub-modules (Sec), Reconciliation

between GLS and sub-modules (Par), at Account Master, you need to setup the following for accounts controlled by the sub-module.

• Set “Other system”, etc. for sub-system accounts.

⇒ Generally, sub-system accounts are A/R, Advance Received, Inventories, Fixed Assets, A/P, A/P-Other, Sale, COS, etc.

• At Detail Code group box, you set “Input not permitted” for detail statuses other than Organization.

⇒ Unless you perform such special analysis at GLS by Client Company Code explained later, this setup will make journal details for the sub-system account summarized into one line and make a journal entry simple.

⇒ At GLS, however, for example, as you use User Defined 3 as an analysis field for the segment, you need to have UD3 set on every journal entry or you want to make a project analysis including all the accounts; for these cases, you have to naturally set “Input compulsory” for such detail codes.

▲ Automatic Journal Master • After deciding the management level of account code at GLS side, you setup Automatic Journal

Master accordingly.

⇒ In order to perform Automatic Journal, you must setup Automatic Journal Master.


3

⇒ For how to operate Automatic Journal Master, you refer to JNL Master (Chap), Automatic Journal Master (Sec) and Automatic Journal Detail Line Attribute Determination Method Master (Sec).

• For how to setup each Automatic Journal Master, you should refer to Journal Image (Par) and Setup (Par) of each corresponding Automatic Journal section of this chapter.

⇒ Journal Image (Par) explains the record source.

⇒ This is because some automatic journals allow you at Automatic Journal Detail Line Attribute Determination Method Master to specify whether each attribute of journal details such as Organization Code should be taken from the record source or the setting of Automatic Journal Master.

• Considering the journal summarization level as described before, you should setup so as to keep consistency with the setting in Account Maser.

• For example, if you have decided that A/R and Sales should be left to the sub-module where they should be controlled, and therefore, you would perform Automatic Journal to create one summarized journal entry after executing Final Closing at sub-modules, you make the following setups.

⇒ At Account Master, for these accounts (A/R and Sales), you set “Input not permitted” to detail codes other than Organization.

⇒ At Automatic Journal Master, you set ‘100: Processing Unit’ for Auto Journal Numbering Unit Code on the header, and set ‘100: Minimum Level’ for Detail Line Summary Method Code in each detail line. At this 100: Minimum Level expects that no detail statuses are required by Account Master and as Organization should be set to the common department, it is expected for Automatic Journal to create one detail journal line.

• In contrast, as the number of sales is not so many , you want to make a unique analysis at GLS, and thus, you want to generate one-to-one auto journal, you should make the following setups.

⇒ At Account Master, you set Input necessary for Client Code of the detail status (and the same for such other statuses as Project and User Defined Codes as deemed necessary).

⇒ Please be noted, however, unless you make necessary setup or input so that the source vouchers are supplied with necessary information such as UD of Sales Voucher Detail, including setting UD Pattern to copy UD of Item Master to related transactions, naturally, you will not be able to transfer necessary codes to the journal detail.

▲ Automatic Journal Number #4 (Setting for C-Tax) • Such as “Accounts Receivable Transaction Entry (sGlsCrtJnlWCTaxLin3)”, rather than the setting in

the corresponding Automatic Journal Number, some Automatic Journals use the setting of Automatic Journal Number #04 for the consumption tax (C-Tax) setting.

• Although this setup must have been completed if you introduced GLS, you should be aware that without this setup, you will encounter an error at time of Accounts Receivable Transaction Entry, etc.


4

▲ Automatic Numbering Journal Number • As described at Outline (Chap), in Plaza-i, you should set Journal Group for journal voucher per

Automatic Journal, precisely speaking, per the system function.

• For how to setup, you refer to GLS Journal (Chap), Outline of Journal (Sec), Journal Group (Par).

⇒ You define Journal Group such as APA or IVT at “Accounting / Payable Group Numbering Master” of USR Numbering Related menu while you associate the defined journal group with the system function of each Automatic Journal at “Automatic Numbering Group Relation Master”.

• The system functions of Automatic Journal are show as in the following list of Automatic Journal.

A List of Automatic Journal

No Automatic Journal Name SYS Function Code System Function

1 Common Expense Distribution AJ GLS EXD Common Expense Distribution

2 Foreign Currency Accounts Translation AJ GLS FCE Translation of FC Accounts

3 Consumption Tax Exclusion AJ GLS CTAXJNL Monthly batch consumption tax exclusion process

4 Consumption Tax Line AJ at time of entry GLS JNLINPUT Journal Entry It is also used by #160.

10 Allocate From - Inter-company / branch Allocation AJ

GLS COBREXD Inter-company / branch Transfer

11 Allocate To- Inter-company / branch Allocation AJ


12 Inter-company / branch Allocation Offset AJ


13 Inter-company / branch Allocation Payable Transfer



5


21 Project Cost of Sales Entry AJ GLS PRJACTCOSTRF Project Cost Transfer

32 Inter-company / branch Journal Entry - Offset AJ

GLS COBRJNLINPUT Company Branch Journal Entry

33 Inter-company / branch Journal - Direct Payment Payable Transfer

GLS COBRJNLINPUT Company Branch Journal Entry

40 Inter-Organization Adjustment AJ GLS CRTORGADJJNL Account Code Change Table History

50 Batch Transfer AJ GLS JNLBATTRF Journal Batch Transfer

91 Internal Interest Calculation AJ GLS INTITRUPDMON Internal Interest Calculation Process

100 Payable Approval AJ APS ACRTRNAPR Payable Approval

101 Payment Execution AJ APS PAYESTAPR Payment Execution Process

102 Withholding Tax Payment AJ at Payable Approval

APS ACRTRNAPR Payable Approval

103 AJ at Payment Deduction Execution APS PAYDEDEXC Payment Deduction Execute

110 Item Purchase Payable Transfer PUR ACRTRNRCD Payable Voucher Creation

111 Purchase Related Expense Payable Transfer

PUR ACRTRNRCD Payable Voucher Creation

112 Processing Charge Payable Transfer PRD ACRTRNRCD Payable Vch Creation

113 Split Payment Request Process PUR DIVPAYREQ Split Payment Request Process

117 Project Split Payment Request Process PRJ PRJDIVPAYREQ Cost/Payment Schedule Registration

119 Purchase Transaction AJ PUR JNLTRF Purchase Automatic Journal

120 Sales Commission Payable Transfer SOE SALCMMACR Sales Commission Payable Transfer

121 General Purchase Payable Transfer GPM GPISPTRN General Purchase Inspection Execution

122 Expense Settlement Request Approval Payable Transfer

EPS EXPPAYREQAPR Expense Settlement Request Approval

130 Inventory Transaction AJ IVT JNLTRF Inventory Transaction Journal Entry

131 Inventory Trichotomy AJ JNL PURIVTJNLTRF Inventory Trichotomy Automatic Journal

140 Sales Transaction Entry AJ SOE JNLTRF Sales Transaction Journal Entry

141 POS Cash Collection AJ POS JNLTRF POS Sales Cash Collection Automatic Journal

142 Cash Collection Transaction Suspense Received AJ

ARS SCASTRNTRF Cash Collection Transaction Suspense Receipt Entry

150 Cash Collection Voucher Approval AJ ARS JNLTRF Cash Collection Journal Entry


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160 Accounts Receivable Transaction Entry AJ ARS A/RTRNF A/R Transaction Entry Approval

170 Project Purchase Payable Transfer PRJ PRJPURPAYREQACR Project Purchase Payable Transfer

171 Resource Suspense Payment Payable Transfer

PRJ RSCSPPACR Resource Suspense Payment Payable Transfer

172 Expected Cost Entry AJ PRJ ACRCOSRCDJNL Expected Cost Entry Journal Transfer

173 Expected Cost Settlement AJ PRJ ACRCOSSTLJNL Expected Cost Settlement Journal Transfer

175 Resource Expense Report SP Settlement AJ

PRJ RSCEXPSPPSTL Resource Expense Report Suspense Payment Settlement Process

176 Project Expense Report SP Settlement AJ PRJ RSCEXPSPPSTL Project Expense Report Suspense Payment Settlement Process

178 Project Close AJ PRJ PRJCLOJNL Project Close Journal Transfer

179 Project Transaction AJ PRJ AUTJNL Project Transaction Journal Transfer

180 Periodic Expense Segregation AJ PRJ PEREXPDIV Periodic Expense Segregation Journal

190 Voucher Estimated Cost AJ PUR ESTCOSJNLTRF Purchase Estimated Cost Journal Entry

301 Local Office Disbursement Transaction AJ LAS LOCCASTRNAPR Local Cash-Related Transaction Vch Approval

302 Local Office Receipt Transaction AJ LAS LOCCASTRNAPR Local Cash-Related Transaction Vch Approval

311 Local Office Cash-Related Accounts Transfer Transaction AJ

LAS LOCACTTRFTRNAPR Local Cash-Related A / C Transfer Transaction Vch Approval

321 Local Office Reimbursement AJ LAS LOCSUSPAYAPR Local Reimbursement Voucher Approval

331 Local Office Payable Entry Approval AJ LAS LOCACRTRNAPR Local Payable Entry Approval

401 Notes Receivable AJ PNS NRRCV Notes Receivable Control No. Numbering

451 Notes Payable AJ PNS NPPAY Notes Payable Control No. Numbering

501 Fixed Asset AJ FAS FASAUTJNL Fixed Assets Automatic Journal (currently not in use)

502 Fixed Asset Depreciation AJ FAS FASAUTJNL Fixed Assets Automatic Journal

503 Fixed Asset Sales AJ (Taxable) FAS FASAUTJNL Fixed Assets Automatic Journal


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504 Fixed Asset Sales AJ (Non-taxable) FAS FASAUTJNL Fixed Assets Automatic Journal

505 Fixed Asset Disposal AJ FAS FASAUTJNL Fixed Assets Automatic Journal

506 Adjustment on Asset Retirement Obligation AJ

FAS FASAUTJNL Fixed Assets Automatic Journal

507 Fixed Asset Acquisition AJ (V2.01.41) FAS FASAUTJNL Fixed Assets Automatic Journal

601 Translation of FEC balance AJ FEC FCE Translation of FC Accounts

700 Payroll AJ (V2.01.38) PYR CRTAUTJNL Payroll Automatic Journal Creation

901 External Journal Acceptance JNL EXTDATJNL External Data Acceptance Automatic Journal 910 Plaza Fixed Assets JNL EXTDATJNL

951 Cash Collection Transaction File JNL EXTDATJNL

981 Denno Kojo Sales Data Link ZEX DFWIFSALTRN Denno Kojo Sales Data Link

982 Denno Kojo Purchase Data Link ZEX DFWIFACRTRN Denno Kojo Purchase Data Link

983 Denno Kojo Fare-Paying Supply Data Link ZEX DFWIFEXPRDTRN Denno Kojo Fare-Paying Supply Data Link

• The above list is showing records of the system table called SysAutJnlM_H as of July 2014.

• Numbers of 119, 130 to 160, 179, 190, 401, 451, and 901 to 951 are Automatic Journals (AJ) created by this JNL module while the others are created by each module.

• The functions of which name ends with Payable Transfer create Payable Vouchers to APS from each module. By approving Payable Voucher, AJ is transferred to GLS.


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2. Common Operations and Restriction

Common Operations

▲ Range Tab • You can specify the range with one accounting period and the entry date of From-TO.

• You cannot specify the period which was already finally closed at GLS.

• Also, although currently no error occurs, please do not specify any closing accounting period.

⇒ The use of the closing accounting period is assumed only within GLS module, as explained in CMN Administrator, Setup (Sec), Common Options by Company (Par).

• In case for the automatic journal which has a summarization function, for example, by specifying the entry date for Sales Voucher, you can create a summarized one journal entry on a weekly basis.

• Date of From-To should not go over several accounting periods.

• You have to determine which interval you transfer journals, whether daily, weekly, or monthly, in advance, and in accordance with your decision, you specify an appropriate range each time.

• As you perform Automatic Journal normally after you completed Monthly Final Closing at each module, by setting the closed accounting period which sets beginning date and ending date automatically, you do not have to specify the dates.

▲ Create Accounting Vch button • By clicking Create Accounting Voucher button, an image of journal voucher to be transferred, which

we often call ‘Journal Image’, is displayed at Accounting Voucher tab so that you can make a simulation of automatic journal transfer.

• You can click this button any time and as many times as you want.

• Clicking this button does not transfer any actual journal voucher to GLS.

• Therefore, normally, you click this button and confirm the content, and then you click the next Approve (Transfer) button.

▲ In case of a journal voucher of which debit sum and credit sum are not in balance (V2.02.11): • If Journal Image includes such an out-of-balance journal, the system shows the following warning

message.

• Tick the ‘Show out-of-balance journal only’ checkbox on the Accounting Voucher tab to filter the records to see only out-of-balance journals and correct the source vouchers.

• After correcting them, create Journal Image again and make sure that the same message no longer appears.

▲ Open Source Voucher • When source vouchers will be transferred as they are on a one-to-one relationship without bundled

into one journal voucher by date or process unit, you can jump to each source voucher from the created Journal Image.

Debit and credit amount in some Journal Voucher image(s) are not balanced. Please correct the source voucher and try again.


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• The following Automatic Journals support the jump function:

⇒ Sales Transaction Entry (V2.02.14)

⇒ Inventory Transaction Entry (V2.02.14)

⇒ Cash Collection Voucher Entry (V2.02.14)

⇒ Cash Collection Transaction Entry (V2.02.15)

⇒ Accounts Receivable Transaction Entry (V2.02.15)

▲ Be careful of clicking Approve (Transfer) button • If you click this button, the system accesses source vouchers such as Sales Voucher, setting

Automatic Journal Created Status ON, and transfers journals to GLS.

• The source vouchers of which Automatic Journal Created Status is ON are never be subject to this process.

⇒ That is, this is a one-time only process, and thus, you should be very careful of doing this.

⇒ Trichotomy Automatic Journal, however, can be repeated since it is a journal entry on a monthly basis.

⇒ Therefore, normally, after processes at the side of sub-module are completed and the final closing ends, you perform Automatic Journal.

• As per Option by Company GLS Journal Log Creation Status, a history of journal edit is also recorded for Automatic Journal as well.

Common Specifications

▲ Foreword • This paragraph explains how to set each field of Journal Voucher to be created by Automatic Journal

menu.

▲ Journal Date • This is Journal Entry Date of a journal automatically created.

⇒ In case of transferring a summarized data, it is To date of Entry Date From-To at the range tab

⇒ In case of ‘by Voucher’, it is the entry date of the source voucher.

▲ Journal Type • The journal type you registered in Automatic Journal Master is posted.

▲ Description of Journal header • It varies on the transfer level, i.e., Auto Journal Numbering Unit Code of Automatic Journal Master

as it is the header.

• By Processing Unit:

⇒ From-TO date of the range＋’ ‘＋the header description of Automatic Journal Master

⇒ ’ ‘ represents one space of half-width.

⇒ E.g.,: 2007 / 01 / 01-2007 / 01 / 31 Sales automatic journal

• By Entry Date:

⇒ Entry date of the source voucher＋’ ‘＋the header description of Automatic Journal Master

⇒ E.g.: 2007 / 01 / 15 Sales automatic journal

• By Voucher:

⇒ Source Voucher Number＋’ ‘＋the header description of Automatic Journal Master


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⇒ E.g.: 05000245 Sales automatic journal

▲ Description of Journal Detail • At Sales Transaction Entry, currently, without considering the summarization unit in the detail, the

similar method to the header corresponding to the header summarization unit is used but a value of the description is taken from that in Automatic Journal Master Detail rather than from that of Automatic Journal Master Header.

• For Inventory Transaction Entry, etc., depending on the summarization unit in the detail, for example, Inventory Transaction Number is set.

• For details, please see the explanation of each menu item.

▲ No detail lines are generated unless it is registered in Automatic Journal Master • In principle, for the lines that are not registered in the detail of Automatic Journal Master, no

automatic journal lines are generated.

• Therefore, you do not have to register the lines that you think are unnecessary for your company.

• In case applicable date is incurred, however, it could become a reason for out-of-balance entry; thus, you should basically register all the detail lines except for those you want to intentionally exclude.

▲ By setup, you can transfer approved journal entry (with some exceptions) • For the following Automatic Journal (AJ) and Payable Transfer, by setting Transferred Journal

Approved Status ON in Automatic Journal Master, you can transfer Automatic Journals or Payable Vouchers with approved status ON.

• A list of Automatic Journals supporting Transferred Journal Approval Status NO Automatic Journal Name SYS Description of the process

01 Common Expense Distribution AJ (V2.01.47) GLS Automatic journal by Common Expense Distribution Process

02 Foreign Currency Accounts Translation AJ (V2.01.21)

APS ARS

At time of APS and ARS FC Translation Process, journal entries are transferred to GLS with approved.

03 Consumption Tax Exclusion AJ

GLS

Automatic journal by Monthly Batch Tax Exclusion Process

10 Allocate From - Inter-company / branch Allocation AJ

Automatic journal by Inter-company / branch Allocation Process 11

Allocate To- Inter-company / branch Allocation AJ

12 Inter-company / branch Allocation Offset AJ

13 Inter-company / branch Allocation Payable Transfer

Ditto→Payable Voucher is transferred with approved

100 Payable Approval AJ (V2, Nov., 2009) APS Payable Approval transfers Journal to GLS with approved.

101 Payment Execution AJ (V2, Apr.,2010) APS Payment Execution transfers Journal to GLS with approved.

102 Withholding Tax Payment AJ at Payable Approval

APS Payable Approval transfers Direct Payment Voucher with approved.

110 Item Purchase Payable Transfer PUR Payable Transfer transfers Payable Voucher with approved＝Executes Payable Approval

119 Purchase Transaction AJ JNL

122 Expense Settlement Request Approval EPS Transfers Payable Voucher with approved


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Payable Transfer

130 Inventory Transaction AJ (V2,Apr.,2010) JNL 131 Inventory Trichotomy Automatic Journal JNL

140 Sales Transaction Entry AJ (V2, Apr.,2010) JNL

141 POS Cash Collection AJ (V2.01.21) POS Cash Collection Entry Approval transfers Journal with approved to GLS

142 Cash Collection Transaction Suspense Received AJ (V2) JNL Cash Collection Transaction Entry

150 Cash Collection Voucher Entry (V2) JNL ARS Cash Collection Voucher Approval is also able to transfer Journal with approved status

160 Accounts Receivable Transaction Entry JNL

179 Project Transaction Automatic Journal (V2.01.21) JNL

190 Voucher Estimated Cost Automatic Journal (V2) JNL

301 Local Office Disbursement Transaction AJ

LAS

302 Local Office Receipt Transaction AJ LAS

401 Notes Receivable AJ (V2, Apr., 2010) JNL 451 Notes Payable AJ (V2, Apr., 2010) JNL

601 Translation of FEC balance AJ (V2.01.21)

FEC Translation of FEC balance transfers Journal with approved to GLS.

981 Denno Kojo Sales Data Link ZEX Creates Sales Automatic Journal with approved

982 Denno Kojo Purchase Data Link ZEX Transfers Payable Voucher with approved

983 Denno Kojo Fare-Paying Supply Data Link

ZEX Transfers Payable Voucher with approved

• For Payable Transfer functions, at Automatic Journal Master, for example, ① by setting Transferred Journal Approved Status ON for Automatic Journal Number 110 which makes the system transfer Payable Voucher to APS and execute Payable Approval at APS simultaneously, and, ② by setting the same status ON for Automatic Journal Number 100, you can make the system approve Automatic Journal tran

Plaza-i JNL Automatic Journal · • Thanks tothis control, since there will be no manual entry...

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