Journal entries were introduced in the 10.5.3 release. Processing Journal Entries will create a Data Transfer Object (DTO) file for exporting to ERP General Ledger systems. In order to use journal entries, there is some setup that is required before using them. It uses a combination of existing and new functionalities.
Prior to any journal entry activity, data must be populated in the following tables:
- Business Units
- Business Units General Ledger Codes
- Business Units General Ledger Segments
- Create a new business unit within the Organizations application, under My Company.
- Using the new function under Contracts-> Financials called Lease Accounting Close Period, you want to create an initial close and open period for the business unit
- Under the new function Contracts -> Contract Setup -> Business Unit General Ledgers to create a general ledger for the business unit.
- Using Classifications -> General Ledger Codes to create Real Estate Codes that gets associated to Business Unit
- Then using the new Lease journal Entry Setup under Contracts -> Contract Setup you will set up your journal entries. Specifying it for real estate or asset, the calendar, period, etc. You will need add a debit and credit GL code. And lastly the calculation to be used for the journal entry.
For additional information on this, I suggest you check out the Lease Accounting Guides found here
Once you have completed the setup you are good to go. For more specific detailed steps, you can go here and watch a video that walks through this process.