Introduction

Automatic journal options

The setting for automatic journal creation can be found in my company under the financials tab.

• If nothing is selected, Paragon 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 financials only is selected, Paragon will create automatic journal entries when any financial transaction is changed to issued status.
  
• If financials, shipments, and inventory 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 financials, receipts, shipments, and inventory 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 the following - invoice, credit, vendor invoice, vendor credit, make payment, and receive payment.

Here, we'll review which financial transactions generate these journal entries and how to view them once they've been created.

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 and with the proper currency exchange rates.  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.

The journal that was 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
  

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.  Here, we'll use an inventory receipt from a purchase order as an example.

As soon as your receipt transaction is changed to complete status, the journal is created.

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.

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 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:

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 from the reports menu.

Import inventory

You can also import inventory using the universal translator (UT). This wiki will give you more information about the creation of journal entries when importing inventory.

What's next?