NetClose - Run Monthly Amortization Journals
Prerequisite
Amortizations must be in Commenced status before you can run journals. If any amortizations are still in pending status, see Commence Amortizations.
Step-by-step process
There are two ways to run monthly journal entries for your amortization. You can run the journal entry individually, directly within the amortization record, or run mass entries for all of your amortizations.
Within the Amortization Record
- Navigate to NetClose > Amortizations > Amortizations and select View on the amortization you wish to run entries on.
- Select Run Journals
3. Select the period and hit Submit.
Mass Monthly Journal Entries
- Navigate to NetClose > Amortizations > Process Journal Entries
- Select the month you'd like to run journal entries for.
- Optionally, select a Summarize Method (see Summarized Journals)
- Select all amortizations and select Submit.
- A processing screen will show Processing and then Complete.
Users with Journal Entry Approvals
If a NetClose Amortization has a schedule line with a journal entry that is "Pending Approval", additional journal entries for that NetClose Amortization (including transfers and modifications) cannot be processed until that journal entry is approved. Users can still run multiple Amortization Expense journal entries at one time from the process journals page, but after being run, each journal entry must be approved before the NetClose Amortization can be processed further.
Initial Balance Entries
If the amortization has an initial balance entry, you must run that entry along with the first month's amortization entry. The initial balance entry is created when an amortization is created from a transaction, and the transaction is not already hitting the prepaid account. You can verify that the amortization is linked to a transaction by navigating to the record (NetClose > Amortization > Amortization) and clicking on the Accounting information subtab. The linked transaction will be listed under the Source Transaction.
The initial balance journal entry will debit the linked Balance Sheet Account based on the amortization type, and credit the account from the source transaction.
If the amortization is not created from a transaction, NO initial balance entry will be run. The schedule line will still appear on the amortization schedule, and the initial balance journal line will still show up when you run entries, but no journal will be made.
You must select both the initial balance and the amortization entry when running the first journal entries. Even though the initial balance entry will not run, both lines must be selected for the amortization entries to run correctly.
Summarized Journals
In NetClose Amortizations, users have the option to create a journal entry for each NetClose Amortization or to create a summarized journal entry for each subsidiary. Summarized journal entries are a single journal entry with multiple lines for all of the amortizations included. The walkthrough below explains this process.
By default, the summarize method will be set to none, which means that no summarization will happen when processing journals and each Amortization selected will receive its own individual journal entry. If a user chooses to create a summarized journal entry, then to rewind any of the NetClose Amortizations included in that summarized journal entry, the user will have to rewind all NetClose Amortizations that are part of the summarized journal entry.
Journal entries will not be combined if they have unique transaction body field values. This means that if you want to use Summarized Journal Entries, any NetClose Amortization Posting Sourcing Records need to have the Apply Impact field set to Line Only. For example, if you are sourcing the vendor from Amortization Records to the journal entries, you will need to select Line Only or else your journal entries will not be combined.
