Journal entry templates allow you to automate and streamline the creation of journal entries for various transactions. This guide explains how to set up a template, customize it, and apply it effectively.
Creating a Journal Entry Template
Navigate to the Templates Section:
Go to Configure > Templates.
Add a New Template:
Click the "Add Template" button.
Fill in the Template Fields:
Template Name: Required. Name of the template.
Legal Entity: Derived from the transaction's legal entity, but can be overridden if a different entity is selected on the lines.
Accounting Date: Automatically derived from the transaction date.
Auto Post: Choose whether to auto-submit or keep the entry in draft.
Currency: Select the fiat currency for the journal entry; defaults to the legal entity's currency.
External Reference: Optional. An additional text field for metadata.
Memo: Optional. Text area for more information.
Setting Up Template Lines
Templates require balanced lines, meaning the total debits must equal the total credits. Each line contains the following fields:
Legal Entity: Required. Can use "Transaction legal entity" for dynamic entries derived from the transaction.
Ledger Account: The account in the chart of accounts that the line amount will update. If you would like the template to automatically derive which asset account to use please read Derived Asset Account Variable section.
Direction: Credit or Debit. Keep in mind that ledger account types impact the balance differently:
Asset and Expense Accounts: Debit normal (a debit increases the balance).
Income, Liability, and Equity Accounts: Credit normal (a credit increases the balance).
Amount Type: Select the variable to derive the amount:
Gross Amount: Total value before any deductions.
Net Amount: Value after all deductions.
Fee Amount: The total of any fees associated with the transaction.
Realized Gain/Loss (+/-): The gain or loss amount, positive or negative.
Realized Gain/Loss (Absolute Value): The absolute value of the gain or loss.
Allocation: The percentage of the variable amount to be allocated (default is 100%).
Example: If a transaction’s gross amount is $100, and you want $90 to go to "Subscription Income" and $10 to "Other Income," set allocations to 90% and 10% respectively.
Tags: Add tags to the journal lines for categorization, such as vendor or customer tags.
Memo: Line-level memo for additional metadata.
Derived Variables
Entendre provides the ability to create a single template for an expense, income or other workflow without having to repeatedly create templates per Legal Entity and Asset Account.
For example, imagine you want to create a rule to automatically account for Gas Fees. In this scenario you have 2 legal entities, 3 wallets per entity and the balance sheet represents each wallet as an asset ledger account. The templates you would need to create without using Derived Variables would be as follows.
Entity A, Wallet A
Dr. Gas Fee Expense - Fee Amount
Cr. Wallet A Asset Account - Fee Amount
Dr. Wallet A Asset Account - Realized Gain Loss Amount (+/-)
Cr. Realized Gain Loss - Realized Gain Loss Amount (+/-)
Entity A, Wallet B
Dr. Gas Fee Expense - Fee Amount
Cr. Wallet B Asset Account - Fee Amount
Dr. Wallet B Asset Account - Realized Gain Loss Amount (+/-)
Cr. Realized Gain Loss - Realized Gain Loss Amount (+/-)
Entity A, Wallet C
Dr. Gas Fee Expense - Fee Amount
Cr. Wallet C Asset Account - Fee Amount
Dr. Wallet C Asset Account - Realized Gain Loss Amount (+/-)
Cr. Realized Gain Loss - Realized Gain Loss Amount (+/-)
And so on... versus
Dr. Gas Fee Expense - Fee Amount
Cr. Derived Asset Account - Fee Amount
Dr. Derived Asset Account - Realized Gain Loss Amount (+/-)
Cr. Realized Gain Loss - Realized Gain Loss Amount (+/-)
Instead you can leverage derived variables for Legal Entities and Asset Accounts by using the following steps:
1. Create a template
Navigate to Configure > Templates
Click "Add template" button on the top right
2. Enter template header details
Add a template name
We recommend using standard naming convention for readability like <Transaction Type>:<Transaction Direction> for example Internal Transfers:Withdrawal or Internal Transfer Deposits
Click "Add line" when you are ready to create the template lines with Derived variables
3. Enter template line details
For Legal entity on the template line, select the "Transaction Legal Entity" variable for ALL lines on the template. This will make the template global across different entities. It will use the legal entity of the transaction it is being applied.
For Ledger Account on the template line, select "Derived asset account" variable for the template lines that debit or credit an asset account mapped to a wallet.
3. Update or create internal sources to include Asset Account
Navigate to Ledger > Sources
Click "Add source" button on the top right or edit an existing source
Specify the asset account that should be derived for transactions from this wallet.
Applying Templates
1. Applying a Template Directly to a Transaction
Navigate to Ledger > Transactions and select a transaction.
In the dialogue modal, search for the template by name.
Click Confirm to create a journal entry for that transaction using the selected template.
2. Using a Template in a Ledger Posting Rule
Create a Ledger Posting Rule that defines conditions for matching transactions.
Assign a template to the rule. When a match is found, the template will be automatically applied.
Note: A rule can only have one template assigned.
When to Use Journal Entry Templates
Templates can be created for any transaction scenario, such as one-off transactions, swaps, expenses, or revenue from customers. As long as the transaction exists in Entendre, a template can be applied. This approach saves time and reduces errors compared to creating manual entries for each transaction.
Benefits of Using Journal Entry Templates
Efficiency: Automate repetitive tasks and save time.
Accuracy: Reduce the risk of errors by using pre-defined templates.
Flexibility: Customize templates for various transaction types.
By using journal entry templates, you can streamline your accounting processes and ensure consistency across your financial records.