Adding Journal Entries

You can add journal entries from any page in an engagement, with the exception of the Recycle Bin page. The journal entry types that are available are:

  • Adjusting
  • Reclassifying
  • Tax
  • Passed
  • Eliminating (available only in a consolidated trial balance)

Adjusting, reclassifying, and tax journal entries immediately update the balances throughout the application, including on the trial balance, leadsheets, and financial statements. You might need to refresh your browser to see the updated balance information.

Passed journal entries are not used to calculate any balances, and so do not appear on the trial balance, leadsheets, financial statements, or the tax summary report. They are, however, included in journal entry exports and during roll forward.

Eliminating journal entries update the consolidated trial balance, with the total for all subsidiaries displayed in the EJE column. The Consolidated total on the consolidated trial balance is the sum of the subsidiary’s total balances and the EJEs.

To add a journal entry, do the following:

  1. Click the engagement on the Engagement List page.

    Note: See Using the Engagement List Page for information about using the pagination and search features to find an engagement in the list.

  2. Click Add Journal Entries > Add Journal Entries on the toolbar from any page in the application other than the Recycle Bin page.
  3. If you are working in a consolidated engagement, click in the gray navigation bar at the top of the page and select the entity you want to work with.
  4. Select the Closedjournal entry type.
    • AJE for an adjusting journal entry
    • RJE for a reclassifying journal entry
    • TJE for a tax journal entry
    • PAJE for a passed journal entry
    • EJE for an eliminating journal entry
  5. If you are adding an eliminating journal entry, select an account from a subsidiary that you want to apply the journal entry to.
  6. Begin typing the account number or account name. As you type, accounts with a number or name matching what you type display. When you see the account you need, select it.

  7. If TJE is selected and the tax grouping list has been selected for M-3 processing, an M-3 Type column is available. If the account that is selected is grouped to a group that is eligible for the M-3 processing, you have the option to designate the journal entry line as a temporary (T) or permanent (P) amount. These amounts flow to the Temporary Difference and Permanent Difference columns in the tax return when the trial balance data is exported or linked to a tax return in CCH Axcess Tax.

    Note: If the account that is selected is grouped to a tax group that is not eligible for M-3 processing, the M-3 Type column defaults to N/A (Not Applicable) and the selection cannot be modified.

  8. Enter either a debit or credit amount in the corresponding column.
  9. Continue adding additional line items in the journal entry, as needed. You can add up to 50 line items per journal entry.

    Note: To delete a journal entry line, click at the end of the line.

  10. Enter a comment to describe the reason for adding the journal entry.

  11. Select a roll forward option to indicate if the journal entry should be rolled forward. You will be able to review and change the option when you roll forward the engagement. By default, the journal entry is set to not roll forward.

    • Do not include. The journal entry is not rolled forward.
    • Recurring with same amounts. The journal entry is rolled forward with no amounts.
    • Recurring clear amounts. The journal entry is rolled forward with no amounts.
    • Reversing. The journal entry is rolled forward, but with debit and credit amounts reversed.
  12. If needed, add a workpaper reference link to the journal entry. Begin typing the index or name of the workpaper in the Workpaper reference box. When you see the workpaper you need, select it.

    Notes: 

    • The workpaper you are referencing must already be uploaded to the Engagement View before you can add a reference link to it. See Referencing Workpapers from a Journal Entry for more information.
    • If needed, you can click next to the Workpaper reference box after selecting a workpaper to open the workpaper and verify that it is the correct one.
  13. Click Save and Add to save the entry and add another journal entry or Save and Close to save the journal entry and exit the Add a Journal Entry pane.
  14. Click at the top right of the pane to close it.