Journal Entries; GL; Month End

Month End Journal Entries

This document explains the purpose and steps of this application in JobBOSS². There is a breakdown of the concepts and functionality as well as specific instructions for using the application. If you need any additional information on this application, see the Additional Topics links to the right.

About Work In Process Monthly Entries

Within JobBOSS², transactions that start on the Shop Floor side of the software post to the GL from either an AP Invoice or an AR Invoice. For this reason, it is necessary to make a monthly Journal Entry in order to adjust your Inventory, Cost of Goods Sold (COGS), and Work In Process (WIP) accounts. The information below provides methods for making these adjusting entries depending on how you handle the material purchases.

Additional Resources

In order to create month end Journal Entries, you will need to gather information from a couple different summaries in the system. Run the following summaries before starting the journal entry process:

• Inventory Summary

  • Run the summary based on the last day of the month or after all activity is completed.

  • This report is NOT back-datable; however, the Inventory Activity Report found is.

• Work In Process Summary

  • Run this report based on the month-end.

  • Select GL Code Breakdown as from the Include These Reports section before running the report.

• Unbilled Receiving Summary

  • Filter by un-billed receipts.

  • This report is NOT back-datable when filtered by un-billed receipts.

Creating the Monthly Journal Entries

There are two ways to create Monthly Journal Entires, and the two methods are distinct based on the way material is posted when purchased. Discern whether your company posts material to COGS when purchased or posts material to inventory when purchased. Then, select the appropriate method below.

Material is Posted to COGS when Purchased

Material is Posted to Inventory when Purchased

1. Open a new Journal Entry.

2. Set the Transaction Date as the last day of the month.

3. Set the Date To Reverse date as the following day (first of the following month).

4. Create two line items to adjust for the amount of un-billed Receivers.

   1. Debit Inventory

   2. Credit AP

      • It is recommended that you create an accrual account for purposes of these entries.

5. Click Save And New.

6. On the new Journal Entry, set the Transaction Date as the last day of the month.

7. Set the Date To Reverse date as the following day (first of the following month)

8.  Create multiple line items to adjust WIP for items still in house.

   1. Debit WIP

   2. Credit Inventory

   3. Credit COGS

      • These appear as individual expenses indicated on the WIP summary by the GL Breakdown report.

9. Click Save And New.

10. On the new Journal Entry, create two line items to adjust inventory by the amount necessary to agree with the Inventory Summary.

    1. Debit COGS

    2. Credit Inventory

       • This is typically, but not exclusively, a credit. Consult your accountant for the correct course of action.

    3. A reverse date should not be set for the inventory journal entry.

11. Click Save to complete the journal entry aspect of the Month End process.

12. Run the Trial Balance sheet; the three columns must display 0 at the bottom to indicate proper balance.

13. Run the Balance Sheet and Income Statement to complete the process.

    1. When running your income statement, Shoptech recommends the following settings:

       1. Print Gross Profit Margin After - Sales (50)

       2. Print Operating Profit Margin After - Other Income (80)

 

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