Recurring journals are similar to normal journals; however, the recurring journals won’t be deleted when posting. In addition, the lines will increase their posting data depending on the Recurring Frequency.
Recurring Methods – There are three types of Recurring Methods:
- Fixed – Used when the journal amount is the same each period. The amount on the journal line remains unchanged after posting.
- Variable – Used when the journal amount is different each period. The amount on the journal line is deleted after the recurring journal is posted.
- Balance – The balance of the account on the line is allocated among the accounts specified for the line on the Allocation page.
Recurring Frequency – This field contains a formula that determines how frequently the entry on the journal will be posted.
- 1D + 1M – 1D: post the first entry on the last day of a month
- 1M + CM: post the first entry on any arbitrary day of a month
Notice that in the Recurring General Journals page for batch name: PARKING, we see that there are 2 variable recurring general journal lines where the amounts are 0. The reason is because the recurring method is variable and amounts are deleted after posting.
Case Study:
In the case where we have 3 departments (ADM, PROD, SALES) that are set up as dimensions and the needed allocations are:
Allocations between dimensions are required at the end of each month. How would we configure the recurring general journal in this case?
- Recurring method: Balance by Dimension
- Recurring frequency: 1D + 1M – 1D