Why Are Manual Journal Entries Important in Puzzle?
Puzzle is designed to be a fully auditable and immutable ledger. This means every transaction recorded is permanent and traceable, ensuring the integrity of your financial data. MJEs are crucial in this system because they:
Maintain Accuracy: Allow you to make necessary adjustments for accurate financial statements.
Ensure Compliance: Provide a transparent record for audits and regulatory requirements.
Enhance Control: Give you the ability to manage unique transactions that automated systems might miss.
Creating a Manual Journal Entry in Puzzle
We’ve streamlined the process to make it as straightforward as possible.
Step 1: Navigate to the Manual Journal Section
Go to the Accounting section in your Puzzle dashboard.
Select "Manual Journal".
Step 2: Start a New Journal Entry
Click on "New Journal Entry".
Step 3: Enter the Journal Entry Details
Fill in all necessary details:
Accounts Affected: Specify which accounts are debited and credited.
Amounts: Enter the transaction amounts.
Descriptions: Add memos or notes for clarity.
Select the Correct View: Choose between standard, recurring, or auto-reversing entries based on your needs.
Step 4: Post or Save the Entry
Click on "Post" to finalize the entry.
Or, save it as a draft if you're not ready to post yet.
Note: Once posted, Manual Journal Entries cannot be deleted—only voided. This policy preserves a complete and transparent log for future review.
Editing a Posted Manual Journal Entry
One common question is:
"Can I edit a Manual Journal Entry after it's been posted?"
The short answer: No. In Puzzle, once an MJE is posted, it becomes a permanent part of the ledger.
Why?
Audit Integrity: Ensures all financial records remain unchanged for auditing purposes.
Data Consistency: Prevents discrepancies that could arise from edits.
What to Do Instead
If you need to make changes:
Option 1: Void and Duplicate the Entry
Void the Original Entry
Navigate to the MJE you wish to adjust.
Click on "Void Entry". This action creates an offsetting entry that negates the original.
Duplicate and Edit
Select the original entry.
Click on "Duplicate".
Edit the necessary details in the duplicate entry.
Post the new entry.
Option 2: Create an Offsetting Entry
Manually create a new MJE that offsets the incorrect one.
Then, post a corrected entry with the right details.
Tip: Always use the memo field to reference original entries. This practice enhances transparency and makes future reviews easier.
Voiding and Reversing Manual Journal Entries
Voiding an Entry
Use this when an entry was made in error and needs to be nullified.
How to Void:
Locate the Entry
Go to the original MJE you want to void.
Void the Entry
Click on "Void Entry". An offsetting entry is automatically created.
Important Notes:
Voided entries cannot be undone.
Each MJE can only be voided once.
Reversing an Entry
Ideal for entries that need to be reversed in the future, such as accruals.
How to Set Up an Auto-Reversing Entry:
Create a New MJE
Start as you would with any new entry.
Enable Auto-Reverse
Select the auto-reversing option.
Specify the reversal date or accounting period.
Benefits:
Automatically creates a reversing entry in the specified period.
Simplifies the management of temporary adjustments.
What If I Need to Unvoid a Voided Entry?
Since voided entries are permanent, you can't "unvoid" them. However, you can recreate the original entry.
Steps to Recreate:
Duplicate the Voided Entry
Find the voided MJE.
Click on "Duplicate".
Review and Post
Verify all details are correct.
Post the duplicated entry.
Remember: Reference the original entry in the memo field for clarity.
Best Practices for Managing MJEs in Puzzle
Double-Check Before Posting
Review entries carefully to minimize errors.
Use Descriptive Memos
Include detailed explanations and references.
Leverage Recurring Entries
For regular adjustments, set up recurring MJEs to save time.
Understand the Immutable Nature
Recognize that posted entries are permanent to maintain ledger integrity.
Why Can't I Edit or Delete Journal Entries in Puzzle?
Puzzle's design philosophy centers around creating a fully auditable and immutable ledger. Allowing edits or deletions could compromise:
Financial Integrity
Ensures that once data is recorded, it remains untouched.
Regulatory Compliance
Meets strict accounting standards and legal requirements.
Stakeholder Trust
Provides confidence in the accuracy and reliability of financial records.
The Bottom Line
Manual Journal Entries are a powerful tool within Puzzle that ensure your financial records are accurate and compliant. While the inability to edit or delete posted entries may seem limiting, this feature safeguards the integrity of your financial data.
By understanding how to effectively create, void, and duplicate MJEs, you can manage your accounting records with confidence and ease.