Journal of Entries/Evidence

Open Question

1. understand that according to Polish law, we have an incremental numbering on all transactions, including bills / bill credit. How are you handling that under the Staria bundle ?

   Besides, on standalone Vendor Bill not approved (marketing process), when refusing bills :

   1. On the home page, in the reminder portlet, add the search "Bills to approve

   2. Open one of the bill, and click on “cancel” to refuse the bill

      What occurs on the numbering of bills ? are we going to have a gap ?

 Requirements

1. TB, where first two and last page is translated to English language.

2. Journal of entries, first two pages and last two pages page.

Please notice that total sum of Journal of evidence for Feb 2021 is equal a total sum of TB for Feb 2021.

Basic legal requirements are laid down in the art. 14 of Accounting Act – see extract below.

The journal, as one of the basic elements of the books of accounts, is a chronological presentation of events that occurred in a given reporting period of the entity. It must make it possible to reconcile its turnover with the turnover of the statement of turnover and balances of general ledger accounts.

The requirements for this report are summarized as following:

• Entries in the journal must be numbered consecutively, and

• The sums of entries (turnovers) must be counted continuously.

• The method of making entries in the journal should make it possible to link them with verified and approved accounting documents.

• Correct numbering in the journal enables their unambiguous connection with the accounting documents constituting the basis for the entered content. Otherwise, the principle specified in article 14, section 2 of the Act is violated.

Moreover, there are additional requirements for the books maintained electronically:

• Keeping books of accounts with the use of a computer imposes an obligation for the accounting entry to have an automatically assigned item number under which it was entered into the journal, and

• The accounting program used to determine the data of the person responsible for the entered content.

• Compliance of the sum of entries in the journal with the total turnover of synthetic accounts of trial balance indicates the completeness and correctness of the recognition of economic operations in the books of accounts in a given period. à usually there is the check in the system whether these two reports match to each other

It is worth quoting article 23, section 2 of the Accounting Act, which lists the elements of the accounting records, which should include at least:

• the date of the economic operation;

• specification of the type and identification number of the accounting document constituting the basis for the every single line entry and its date, if it differs from the date of the operation;

• understandable text, abbreviation or operation description code, however, written explanations of the content of abbreviations or codes should be available;

• the amount and date of the entry;

• designation of the accounts to which it applies

• if there are other elements such as costs center, project, customer account, vendor/supplier account, employee account, etc., it must be also included for the every single line of entry.

In addition, similar to trial balance statement, like any other book of accounts, journal must have the formal elements indicated in Art. 13 sec. 4 of the Accounting Act, i.e.:

• name of the legal entity to which it applies,

• indication of the financial year,

• indication of the reporting period,

• date of preparation (generation),

• name (title of the book) "Journal" (in Polish “Dziennik”)

• computer printouts of journal entries register should consist of automatically numbered pages, marked with the first and last page, and be totaled on consecutive pages continuously during the fiscal year.

• the sum of the debit turnover of all accounts should be equal to the sum of the credit turnover,

• the sum of the debit balances of all accounts should equal the sum of the credit balances.

Example from IFS:

Please note that example from IFS includes also the identification of the person responsible for the entry (Użytk.:ELKR).

--- Extract for the applicable law ---

Article 14. on accounting

Journal

1. The journal shall contain a chronological account of events that occurred during the reporting period. Regardless of the technique of bookkeeping, the journal should allow reconciliation of its turnover with the turnover of the statement of turnover and balances of the general ledger accounts (trial balance of general ledger).

2. Entries in the journal must be numbered consecutively, and the sums of entries (turnover) counted continuously. The method of making entries in the journal should enable them to be unambiguously linked to the checked and approved accounting evidence.

3. If partial journals are used, grouping events according to their types, a summary of the turnover of these journals for the reporting period should be prepared.

4. When keeping accounting books using a computer, the accounting entry should be automatically assigned an item number under which it was entered into the journal, as well as data that allow identifying the person responsible for the content of the entry.

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