# Journal Entries & IFRS Training

Master the enterprise-grade journal entry system with 83 IFRS-compliant templates

Phase 1: Critical (15) Phase 2: Important (20) Phase 3: Advanced (24) Phase 4: Automation (24)

## System Overview

The CNPERP Journal Entry system is an enterprise-grade IFRS-compliant accounting platform with 83 professional templates covering 100% of accounting needs.

83
Total Templates
19
IFRS Standards
10
Recurring Entries
80%
Time Savings

##### Key Benefits

- IFRS Compliance: All templates follow international accounting standards
- Intelligent Matching: 78+ account keywords for automatic account selection
- Multi-line Support: Handle complex transactions with unlimited entry lines
- Automation: Recurring entries reduce manual work by 70%
- Audit Ready: Built-in IFRS references and proper documentation

## Getting Started

#### Step 1: Access the System

Navigate to Accounting ? Journal Entries from the main menu.

Quick Tip: Press `F1` from any page to access the help system!

#### Step 2: Understanding the Interface

- Header Section: Shows phase completion status and IFRS standards covered
- Transaction Type Dropdown: 16 categorized optgroups with all 83 templates
- Template Info Panel: Displays IFRS reference and transaction description
- Entry Lines: Debit and credit lines with account selection and amounts
- Balance Validation: Automatically ensures debits equal credits

#### Step 3: Create Your First Entry

1. Click "New Journal Entry" button
2. Select a transaction type from the dropdown (e.g., "Depreciation Expense")
3. Review the template description with IFRS reference
4. Select accounts for each line (system suggests based on keywords)
5. Enter amounts
6. Add narration/description
7. Click "Save" to post the entry

###### Example: Simple Depreciation Entry

Account | Type | Amount
--- | --- | ---
Depreciation Expense | Debit | 50,000.00
Accumulated Depreciation | Credit | 50,000.00

IAS 16 Monthly depreciation on fixed assets

## Phase 1 Critical Daily Transactions

These 15 templates cover 80% of daily accounting activities.

##### Fixed Assets (IAS 16) - 2 Templates

- Asset Acquisition: Record PPE purchases at cost
- Depreciation Expense: Systematic allocation over useful life

Example: Asset Purchase

Dr. Equipment | 100,000
Cr. Bank | 100,000

##### Inventories (IAS 2) - 2 Templates

- Cost of Sales: Transfer inventory cost to expense when sold
- Inventory Write-down: Reduce inventory to NRV when impaired

##### Employee Benefits (IAS 19) - 3 Templates

- Payroll Accrual: Record gross salaries and withholdings
- Payroll Payment: Settle net pay to employees
- Benefits Provision: Accrue leave pay and gratuity obligations

Important: Payroll template includes 5 lines: gross pay, employer taxes, net pay, tax withholding, and benefits deductions.

##### Taxation (IAS 12) - 2 Templates

- Income Tax Provision: Accrue current tax expense
- Tax Payment: Settle tax liability with authorities

##### Period-End Adjustments (IAS 1) - 3 Templates

- Accrued Expenses: Recognize expenses incurred but not yet paid
- Accrued Income: Recognize revenue earned but not yet received
- Prepaid Expenses: Record advance payments

## Phase 2 Important Periodic Transactions

These 20 templates cover important monthly/quarterly adjustments representing +15% coverage.

##### Financial Instruments (IFRS 9) - 3 Templates

- Impairment Loss (ECL): Record expected credit losses on financial assets
- Bad Debt Write-off: Write off uncollectible receivables
- Impairment Reversal: Reverse when credit conditions improve

##### Asset Impairment (IAS 36) - 1 Template

- Asset Impairment: Write down non-financial assets to recoverable amount

##### Provisions (IAS 37) - 3 Templates

- Create Provision: Recognize provisions for warranties, legal claims, restructuring
- Use Provision: Utilize provision when liability settled
- Reverse Provision: Reverse when no longer needed

Best Practice: Review provisions quarterly for changes in estimates.

##### Revenue Recognition (IFRS 15) - 3 Templates

- Deferred Revenue Receipt: Record advance payments from customers
- Recognize Deferred Revenue: Transfer to income as performance obligations met
- Contract Asset: Record unbilled revenue for services performed

##### Borrowing Costs (IAS 23) - 3 Templates

- Interest Expense Accrual: Accrue interest on borrowings
- Interest Payment: Pay accrued interest
- Capitalize Interest: Capitalize interest for qualifying assets

##### Asset Disposal (IAS 16) - 3 Templates

- Disposal - Gain: Record asset sale with gain
- Disposal - Loss: Record asset sale with loss
- Asset Scrapping: Write off asset with no proceeds

##### Leases (IFRS 16) - 3 Templates

- Lease Initial Recognition: Record right-of-use asset and lease liability
- Lease Payment: Allocate payment between principal and interest
- ROU Asset Depreciation: Depreciate right-of-use asset

## Phase 3 Advanced Financial Instruments

These 24 templates cover sophisticated accounting scenarios representing +4% coverage.

##### Foreign Currency (IAS 21) - 4 Templates

- Foreign Currency Transaction: Record at spot rate
- Foreign Exchange Gain: Settlement/revaluation gains
- Foreign Exchange Loss: Settlement/revaluation losses
- Period-End FX Revaluation: Revalue monetary items at closing rate

##### Fair Value Measurement (IFRS 13) - 4 Templates

- Fair Value Gain (FVPL): Mark-to-market gains through P&L
- Fair Value Loss (FVPL): Mark-to-market losses through P&L
- Fair Value Gain (FVOCI): Fair value changes through OCI
- Fair Value Loss (FVOCI): Fair value changes through OCI

##### Deferred Tax (IAS 12) - 3 Templates

- DTA Recognition: Record deferred tax assets for deductible differences
- DTL Recognition: Record deferred tax liabilities for taxable differences
- Deferred Tax Reversal: Reverse when differences unwind

##### Share-Based Payments (IFRS 2) - 3 Templates

- Compensation Expense: Recognize over vesting period
- Share Option Exercise: Transfer reserve to share capital
- Share Option Forfeiture: Reverse when options don't vest

##### Intangible Assets (IAS 38) - 4 Templates

- Intangible Acquisition: Capitalize software, patents, licenses
- Intangible Amortization: Amortize finite-life intangibles
- Research Expense: Expense research costs (cannot capitalize)
- Development Capitalization: Capitalize qualifying development

##### Government Grants (IAS 20) - 3 Templates

- Grant Income Method: Record as deferred income
- Grant Recognition: Recognize income over periods
- Grant Deduction Method: Deduct from asset cost

## Phase 4 Automation & Workflow

These 24 templates provide enterprise automation reducing manual work by 70%.

##### Recurring Entries - Monthly (5 Templates)

- Monthly Depreciation Batch: Automate all fixed asset depreciation
- Monthly Amortization Batch: Automate intangible amortization
- Monthly Lease Depreciation: Automate ROU asset depreciation
- Monthly Interest Accrual: Automate interest expense accrual
- Monthly Grant Recognition: Automate grant income recognition

Automation Benefit: Set up once, runs automatically every month-end!

##### Recurring Entries - Quarterly (3 Templates)

- Quarterly Tax Provision: Automate tax calculation
- Quarterly Impairment Review: Automate impairment testing
- Quarterly Provision Review: Automate provision adjustments

##### Recurring Entries - Annual (2 Templates)

- Annual Bonus Accrual: Year-end bonus provision
- Annual Leave Provision: Year-end leave liability

##### Workflow & Period-End (5 Templates)

- Reversing Entry: Auto-reversing accruals
- Period-End Closing: Transfer P&L to retained earnings
- Opening Balances: System implementation entries
- Reclassification: Reclassify between accounts
- Error Correction (IAS 8): Prior period error corrections

##### Batch Processing (3 Templates)

- Batch Customer Receipts: Process 100+ receipts in one entry
- Batch Supplier Payments: Process payment runs
- Batch Payroll Processing: Consolidated payroll entry

##### Consolidation (IFRS 10) - 2 Templates

- Intercompany Elimination: Eliminate interco transactions
- Goodwill Impairment: Annual goodwill testing

## Common Workflows

#### Month-End Close Procedure

1. Recurring Entries: Run all monthly recurring templates
2. Accruals: Record accrued expenses and income
3. Prepayments: Amortize prepaid expenses
4. Depreciation: Run monthly depreciation batch
5. Lease Accounting: Record lease payments and depreciation
6. Bank Reconciliation: Reconcile all bank accounts
7. Review: Review trial balance and profit & loss
8. Lock Period: Lock the period to prevent changes

#### Quarter-End Process

1. Complete month-end procedures
2. Run quarterly tax provision
3. Perform impairment testing
4. Review and adjust provisions
5. Prepare quarterly financial statements

#### Year-End Close

1. Complete all quarter-end procedures
2. Record annual bonus accrual
3. Calculate annual leave provision
4. Perform goodwill impairment testing (if applicable)
5. Complete deferred tax calculations
6. Review all estimates and provisions
7. Prepare financial statements
8. Run period-end closing to transfer P&L

Pro Tip: Use the Phase 4 Guide button in the system to view the comprehensive checklist!

## Best Practices

#### 1. Always Use Templates

Templates ensure IFRS compliance and proper account classification. Never use "Custom Transaction" unless absolutely necessary.

#### 2. Review Template Descriptions

Each template includes detailed IFRS guidance. Read the description to understand recognition criteria.

#### 3. Check Account Matching

The system suggests accounts based on keywords. Always verify the suggested account is correct for your chart of accounts.

#### 4. Use Meaningful Narrations

Add clear descriptions to journal entries. Include references to invoices, contracts, or supporting documents.

#### 5. Set Up Recurring Entries

Configure all 10 recurring entries to automate monthly work. Review and adjust amounts quarterly.

#### 6. Document Complex Transactions

For multi-line entries (like payroll or asset disposal), attach supporting calculations.

#### 7. Review Before Posting

Always verify debits equal credits before saving. Check amounts and account classifications.

#### 8. Regular Training

Train staff on new templates and IFRS updates. Use this guide as reference material.

Critical: Never delete posted journal entries. Use reversal entries or error corrections (IAS 8) instead.

## Troubleshooting

#### Issue: Debits Don't Equal Credits

Solution: The system validates automatically. If you see an error, check all amount fields for typos or missing values.

#### Issue: Can't Find the Right Account

Solution: Use the "Refresh Codes" button to reload the chart of accounts. If the account doesn't exist, create it first in Chart of Accounts.

#### Issue: Template Doesn't Match My Scenario

Solution: Select the closest template and modify the entry lines. You can add or remove lines as needed.

#### Issue: Recurring Entry Amounts Are Wrong

Solution: Recurring templates provide structure only. Update amounts each period based on actual calculations.

#### Issue: Wrong Account Selected

Solution: If already posted, create a reclassification entry to move the amount to the correct account.

#### Issue: Need to Correct Prior Period Error

Solution: Use the "Error Correction (IAS 8)" template. This adjusts retained earnings for material prior period errors.

Need Help? Click the Debug button (bug icon) in the system to see technical information about accounts loaded.

### Quick Reference Card

##### Keyboard Shortcuts

- `F1` - Open Help System
- `Ctrl+S` - Save Entry
- `Ctrl+N` - New Entry

##### Phase Breakdown

- Phase 1: 15 templates (Daily)
- Phase 2: 20 templates (Periodic)
- Phase 3: 24 templates (Advanced)
- Phase 4: 24 templates (Automation)

### Video Tutorials Coming Soon

Check back for step-by-step video guides on using the journal entry system.

Back to Help Center Open Journal Entries