If you are one of our Beta testers, you now have access to Journal Entries for Accrual Accounting! Since this feature is under active development, it's likely you'll notice changes in behavior and style along the way.

How do Journal Entries help?

Every time your organization processes a transaction, a journal entry will be automatically created using double-entry bookkeeping (that is, it will impact at least two accounts through debits and credits) suitable for Accrual Accounting.

By Accrual Accounting we mean that revenue is recognized at the moment of service or product delivery. So if your client buys an activity that will occur next month, the revenue generated by that activity will be deferred until next month when it actually takes place.

This feature has been created to empower your financial team to access accurate accounting data in real-time as well as to enable you to easily import this data into your accounting software.

How do Journal Entries work in Amilia?

1. Enable Accrual Accounting

The default setting in Amilia is cash accounting so you'll need to switch to Accrual from Accounting and finance > Ledger codes as seen below.

2. Make sure you have everything you need to get started.

2.1 Customize your ledger codes

When you enable Accrual Accounting, Amilia will automatically create some default ledger codes for you. However, you can create custom ledger codes as well as modify existing ones from Accounting and finance > Ledger codes as seen below.

2.2 Assign ledger codes

Every time you create an activity, private lesson, merchandise or any other offering, you will be asked to assign a ledger code to that offering (this is mandatory as it helps the platform correctly create journal entries and track different types of transactions). Note that this only applies to the codes you create or customize – Amilia will automatically assign the defaults.

Pro-tip 🏆: Get a colleague from your Accounting and Finance team to help you set up your ledger codes properly.

3. Check out the Journal Entries page

Once you enable Accrual Accounting, the platform will automatically generate journal entries every time your organization processes a transaction. You can view these journal entries by clicking on Journal Entries under the Accounting and Finance tab in the left sidebar.

Pro-tip 🏆: You can view the original transaction from the Journal Entries page by clicking on the Reference link as seen below.

4. Use search and filters to find specific data

You can search for journal entries by Account ID, invoice or transaction number as well as filter journal entries for a specific date range.

5. Export journal entry reports

You can export journal entries for your filters and / or a summary of transactions for a given date range based on your filters.

If you have feedback and/or questions, write to us at product@amilia.com!

You might also be interested in:

Creating Ledger Codes

Manually Reconciling an Account

Tracking Failed Transactions and Expiring Credit Cards

Accrual Accounting in Amilia

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