Creating Journal Entries

Overview

Journal entries are generated in RevRec based on the journal account mapping that you configure, including the advanced mappings; for example, if you have applied an advanced journal mapping with product type, RevRec maps your transactions with different product types to different accounts.

Journal entries can be generated in RevRec either automatically by closing the accounting period, or manually on-demand.

Automatic Generation of Journal Entries

RevRec automatically generates journal entries when a new data job is completed, so the journal entries always contain the most up-to-date information. For example, if you have daily auto sync enabled for integrated upstream systems, journal entries are generated automatically each day when new transaction data is synced and processed from these systems. Additionally, when an accounting period is closed, RevRec processes certain journal entries such as reclass of deferred revenue to unbilled receivable as part of the close.

Manual Generation of Journal Entries

RevRec also provides the option to manually start the journal entry generation process. The ability to review journal entries before closing an accounting period is useful when dealing with complex revenue accounting operations. You can generate the journal entries first, review and analyze the results, make data changes, and rerun the journal entries if needed before closing the accounting period.

Follow the steps below to generate journal entries manually on your RevRec site:

1. Once this feature is turned on, click Accounting > Create Journals to start the journal entry process.

   

2. Select the accounting period(s) for generating the journal entries. You can select either one accounting period or multiple accounting periods as long as they are still open and are not in the future.

   

3. Click Create to start the journal entry process. This could take a minute or two to complete. Any existing journal entries for the selected period(s) are deleted and regenerated.

4. Once the process is completed, click the Journal Entry Report icon on the top-left corner of the page to review the journal entry results.

   
   

You can take corrective actions if there are any issues in the journal entries. For example, you can update data or custom fields required for the journal account mapping and rerun the journal process. You can repeat this as many times as needed. Note that if input data has been updated, you must reprocess the dated data first before regenerating journals.