| # Recurring journals Recurring journal transactions are journal transactions that ERP LN can generate regularly based on the transaction details and instructions that you set up in the recurring journal definition. Common costs such as the costs of the office buildings and parking spaces, a canteen, technical staff and security officers, and the costs of heating, electricity, and water, are often distributed over the various departments and sites of an organization on a fixed basis. You can set up recurring journal definitions to distribute such costs. For such costs, you can set up recurring journal definitions to generate the corresponding financial transactions and support the monthly accounting of the departments. The resulting reports provide useful management information and they are required in countries in which organizations must prepare consolidated financial statements and are requested to disclose profit and loss for each department separately. Recurring journal categories The data class of a recurring journal definition indicates the transaction category. The following categories exist: Transfer, to transfer costs to other departments or companies. Allowance to assign estimated costs to other departments or companies. Payment, to generate simple recurring purchase invoices. Billing to generate simple recurring sales invoices. For details, refer to Data class Note In the Accounts Receivable and the Accounts Payable modules, you can also create recurring invoices and recurring payments in the following sessions: Recurring Sales Invoices (tfacr1514m000) Recurring Purchase Invoices (tfacp1113s000) The difference with recurring journal transactions of the Payment or Billing data class is that in the Accounts Receivable and the Accounts Payable session, you can enter more transaction details. Currency rates Depending on the data class of the transactions, you can select a rate determiner for the recurring journal transactions. If you use a dependent multicurrency system and the Rate Determiner is Manually Entered, you can change the rate between the transaction currency and the reference currency. When you generate the recurring transactions and whenyou print a transaction report, you can either use the currency rates that are valid on the day when the transactions are generated or the currency rates you specified on the journal header. Reversal transactions You can reverse recurring journal transactions of the Transfer or Allowance data class. For example, to cover the telephone charges you can set up a recurring journal definition of the Allowance data class to monthly assign a fixed amount to the various departments. At quarter end when the actual telephone costs are known, you can reverse the journal transactions and charge the actual costs to the departments. You can set up reversal transactions as described in Recurring Journal Instructions (tfgld0143s000). To use normal reversal transactions Another way to reverse the transactions is to create the instructions and select the Not Applicable reversal type. To reverse the transaction, create an instruction of the Normal Reversal type. This instruction generates the transactions of the recurring journal definition but reverses Debit and Credit. Note For the normal reversal transactions, ERP LN uses the currency rate information of the generation date of the reversal transaction, which can cause currency differences. Related topics To set up recurring journals To generate recurring journal transactions |