--- title: Automatic journal entries description: Please note that for any item to be considered for automatic journal entries, it must have a purchase cost greater than $0.00 The automatic journal creation settings can be found in my company under t --- [Skip to content](https://support.paragon-erp.com/automatic-journal-entries#main-content) English Show submenu for translations [![paragon logo-1.png\]](https://support.paragon-erp.com/hs-fs/hubfs/paragon%20logo-1.png?width=240&height=75&name=paragon%20logo-1.png)](https://support.paragon-erp.com/?hsLang=en) - [New Ticket](https://share-eu1.hsforms.com/1PiwaZCxTRpabuHVnQxGeXQc751y) - [Tickets](https://help.paragon-erp.com/tickets) - [Knowledge Base](https://support.paragon-erp.com/) - [Sign out](https://20488534.hs-sites.com/_hcms/mem/logout) Open main navigation Close main navigation - [New Ticket](https://share-eu1.hsforms.com/1PiwaZCxTRpabuHVnQxGeXQc751y) - [Tickets](https://help.paragon-erp.com/tickets) - [Knowledge Base](https://support.paragon-erp.com/) - [Sign out](https://20488534.hs-sites.com/_hcms/mem/logout) - English Show submenu for translations - [Go to website](https://www.paragon-erp.com/) [Go to website](https://www.paragon-erp.com/?hsLang=en) Welcome! Search our Knowledge Base. - There are no suggestions because the search field is empty. 1. [ParagonERP](https://support.paragon-erp.com/?hsLang=en) 2. [Finance](https://support.paragon-erp.com/finance?hsLang=en) 3. [Journal Entries](https://support.paragon-erp.com/finance?hsLang=en#journal-entries) September 10, 2025 # Automatic journal entries ### Introduction Every company has its own workflows and methods for creating accounting journal entries during its daily processes. Paragon allows you to automatically create journal entries when financial transactions are issued (such as invoices, credits, and the like). You can also decide if you want Paragon to create journal entries from inventory receipts   Please note that for any item to be considered for automatic journal entries, it must have a **purchase cost** greater than $0.00 #### **Automatic journal options** The automatic journal creation settings can be found in **my company** under the **financials tab**. ![](https://support.paragon-erp.com/hs-fs/hubfs/Financials%20in%20my%20company-jpg-2.jpeg?width=1839&height=871&name=Financials%20in%20my%20company-jpg-2.jpeg)   ![](https://support.paragon-erp.com/hs-fs/hubfs/Financials%20Modal-png.png?width=1828&height=810&name=Financials%20Modal-png.png) Click on the **edit** button to be able to access the automatic journal options. ![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202025-09-10%20090146-png.png?width=388&height=174&name=Screenshot%202025-09-10%20090146-png.png) - If the **nothing** option is selected, ParagonERP will not create any journal entries and your financial statements will not be updated. This would potentially be your preference if you are using another accounting software. Please note that if this option is initially selected and then changed at a later time, only subsequent financial journal entries will be considered. - If the **financials only** option is selected: Paragon will create automatic journal entries when any financial transaction is changed to [issued status](https://support.paragon-erp.com/how-do-statuses-work?hsLang=en). - If the **financials, shipments, and inventory** option is selected: Paragon will create automatic journal entries when any financial transaction is changed to issued status, when any shipment is changed to complete status, and/or when any manual inventory change is made. It will not, however, create a journal when a receipt is completed. - If the **financials, receipts, shipments, and inventory** option is selected: Paragon will create automatic journal entries when any financial transaction is changed to issued status or when any inventory receipt is changed to complete status. Receipts and shipments will create automatic journals when they are changed to complete status. #### **Financials only** Financial transactions include invoice, credit, vendor invoice, vendor credit, make payment, and receive payment. For our example, we'll look at invoices.  As soon as an invoice is changed to *issued* status, Paragon knows to create a journal entry for the amount of that invoice with links to all the appropriate [GL accounts](https://support.paragon-erp.com/setting-up-gl-links?hsLang=en) and with the proper [currency exchange rates](https://support.paragon-erp.com/adding-currency-and-exchange-rates?hsLang=en). When the invoice is issued, you see a notification that gives you the sequence number of the journal entry that was just created so that it can be reviewed or verified. ![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202025-09-10%20091009-png.png?width=1714&height=901&name=Screenshot%202025-09-10%20091009-png.png)   The journal that is created includes the following information: - Source of the journal (in this case an invoice and its sequence number) - Exchange rate that was used for the currency conversion on that transaction - All affected GL accounts and the dollar amounts that were used for each account ![](https://support.paragon-erp.com/hs-fs/hubfs/Automatic%20journal%20entry-jpg.jpeg?width=1614&height=871&name=Automatic%20journal%20entry-jpg.jpeg)   #### **Financials, Receipts, Shipments, and inventory** If this option is selected, all financial transactions will generate journal entries as outlined above and all inventory receipt transactions will also generate a journal in a very similar fashion. As soon as you complete a receipt transaction, the journal is created. ![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202025-09-10%20091739-png.png?width=125&height=43&name=Screenshot%202025-09-10%20091739-png.png)   The same information is included in the automatic journal. - Source of the journal (in this case a receipt and its sequence number) - Exchange rate that was used for the currency conversion on that transaction - All affected GL accounts and the dollar amounts that were used for each account The above process is true for any inventory adjustment - receipts, shipments, and manual stock adjustments. Note that if you complete a receipt from a work order with custom BoM, the journal will include **the receipt values plus the custom BoM values**.     Financials, Shipments, and inventory If this option is selected, all financial transactions will generate journal entries. No journal will be created for the completion of a receipt. However, you will still be able to see the movement of inventory in your **Inventory History** tab.  ![](https://support.paragon-erp.com/hubfs/Knowledge%20Base%20Import/edbsn5b282a187560f6e65c7279a517b7bcc95de085bb313183a55220bc914ebec024d7263d82e4ca5756623aa814f640bfb3-1-1-1-3-1.png) Note that if you complete a receipt from a work order with custom BoM, the journal is created **for the custom BoM values only.**       #### **Missing exchange rates** Every time a system-generated journal is required, the default [exchange rates](https://support.paragon-erp.com/how-to-add-currency-and-exchange-rates?hsLang=en) are verified and used based on the currency of the transaction and the rates that have been set up for the date of that transaction.  If at any time a valid exchange rate cannot be found, you will see a notification alerting you that the journal could not be created: ![](https://support.paragon-erp.com/hubfs/Knowledge%20Base%20Import/edbsn489222c6e2983bff59c2d5f3afe26c059664dd07ee66dae972c9dbaf6a0b967e2e9b1a4781b565acdb4803cb6c98ff4f-1-1-1-3-1.png) #### **Allow 0$ Journal Entries** Certain situations require you to create transactions that should have a $0 value journal entry. For example, when sending out free samples to customers, you might end up with a $0 transaction. Paragon gives you the ability to create journal entries with a $0 amount for such scenarios. Under the **financials** tab in **My Company**, you can toggle the setting on from the lefthand side menu. ![](https://support.paragon-erp.com/hs-fs/hubfs/Allow%200$%20Journals-jpg.jpeg?width=1835&height=810&name=Allow%200$%20Journals-jpg.jpeg)   You will need to make sure that your GL is set up correctly with the attribute of your choosing to make the automatic journal entry 0. In this example, we are setting it up for the Shipments module, with the attribute *scale*, when **Scale 1** is selected. In this scenario, Scale 1 is a free sample scale. ![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-07-29%20at%2010-29-07%E2%80%AFAM-png.png?width=670&height=109&name=Screenshot%202024-07-29%20at%2010-29-07%E2%80%AFAM-png.png) ![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-07-29%20at%2010-29-16%E2%80%AFAM-png.png?width=670&height=110&name=Screenshot%202024-07-29%20at%2010-29-16%E2%80%AFAM-png.png)   Now, when completing a shipment with an item that has Scale 1, the automatic journal entry created will have a $0 value. ![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-07-29%20at%2010-30-49%E2%80%AFAM-png.png?width=670&height=354&name=Screenshot%202024-07-29%20at%2010-30-49%E2%80%AFAM-png.png) Navigating to the journal entry confirms that the value is correctly $0. ![](https://support.paragon-erp.com/hs-fs/hubfs/Screenshot%202024-07-29%20at%2010-32-04%E2%80%AFAM-png.png?width=670&height=342&name=Screenshot%202024-07-29%20at%2010-32-04%E2%80%AFAM-png.png) #### **Journal listing WIGO report** If you would like to see a listing of all entries created in the journal, run the [journal listing WIGO report](https://support.paragon-erp.com/listing-reports-in-wigo?hsLang=en) from the reports menu. #### Import inventory You can also [import](https://support.paragon-erp.com/importing-exporting-or-transferring-my-data?hsLang=en) inventory using the **universal translator** (UT). This wiki will give you more information about the creation of journal entries when [importing inventory](https://support.paragon-erp.com/adjusting-stock-by-importing-inventory?hsLang=en). #### **What's next?** If you're looking for more help on journal entries, take a look at these handy articles and explore further. 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