Journal entry

A journal entry (JE) is the act of keeping or making records of any transactions. The journal entry consists of two or more journal lines (JL), each of which is either a debt or a credit to a ledger account.

A journal entry on Leapfin Platform contains following properties:

• date (date): the book date of the journal entry
• journal lines (entries): a list of journal lines within the journal entry. Each line contains the following properties:
  • ledger account (account)
  • journal line amount (amount)
  • debit or credit (accountingSide)
• comments (comments): additional notes about the journal entry

Sample JE in table format

Sample JE in json format

{
    "date": "2022-01-01",
    "entries": [
      {
        "amount": 100.00,
        "account": "account-receivable",
        "accountingSide": "dr"
      },
      {
        "amount": 100.00,
        "account": "revenues",
        "accountingSide": "cr"
      }
    ],
    "comments": {
      "note": "a sample journal entry"
    }
}

How it works

Journal entries are generated based on logics defined in Transaction Scenarios. On a daily basis, Leapfin processes new data received and automatically generates journal entries. The journal entries created are at the most granular level - per transaction scenario, per financial record, per day. And each journal entry is stored as parts of the financial records that triggers the financial impact.

For example, a company sells 100 subscription items in the month of January. 95 of them received a payment, and 5 subscriptions ended up canceled / refunded.

In this case, there are three transaction scenarios: linear amortization for subscription item, transaction payment, and subscription refund. Four types of financial records are involved: Invoices, Line Items, Payments and Refunds. During daily data processing, Leapfin creates a revenue recognition journal entry for each of the 100 subscription item (i.e. Line Item record) on each day of the subscription period. For those items that are paid, Leapfin creates a journal entry for each Payment record on the payment date. For those are refunded. Leapfin creates a journal entry for each Refund record on refund date, and a journal entry on the canceled item (i.e. Line Item) to revert each of the future revenue recognition schedule.

Tracking journal entries at such granular level empowers finance and accounting teams to generate any type of aggregation reports and drill down to the roots when in doubt.

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Leapfin does not generate a unique identifier for each journal entry

Query journal entries

Journal entries can be queries in three ways on Leapfin Platform

By financial record

Each journal entry created on Leapfin Platform is associated with financial record that triggers the financial impact. To see all journal entries (i.e. financial impacts) of a particular financial record, ACCOUNTING_TRANSACTIONS_VT field of the record should be queried.

For example, to see all journal entries of a Line Item record, follow the instructions in "Query a Line Item" section to retrieve ACCOUNTING_TRANSACTIONS_VTvalue of that Line Item.

By daily JL view

When creating aggregated reports, for example, a JE report to load data in Netsuite, aggregating journal entires across financial records is often needed. The daily journal line view should be used for aggregation purpose.

See "Daily Journal Line View" section for more details.

by monthly JL view

Besides the daily journal entry view, a monthly journal line view is also available for teams to build aggregated JE reports. The monthly view is very similar to the daily view except that journal entries has already been aggregated at the monthly level. The former is less granular than the latter but allows better query performance.

See "Monthly Journal Line View" section for more details.