Automatic Journal Entries

In this topic, we will give examples of the automatic journal entries that are created during the sales, purchasing, and inventory processes. We will also talk about some financial settings that affect these automatic journal entries.

1. In automatic journal entries the system ‘knows’ which accounts to use because you defined default G/L accounts in the G/L Account Determination window. These default accounts include control accounts that link the business partner sub-ledger accounts to the general ledger. 
2. The Business Partner Master Data balances are represented in the chart of accounts in the receivable and payable control accounts that accumulate the customer and vendor transactions in their balances. 
3. In an A/R Invoice the system ‘knows’ the value to be credited and debited in the automatic journal entry using the default price list as defined in the customer master record and the item price in this price list.
4. In a Delivery the system ‘knows’ the value to be credited and debited in the automatic journal entry using the item cost value that is calculated automatically, behind the scenes, according to the valuation method chosen for the item. 

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