Creating split distribution recurring journal entries

Split distribution recurring journal entries can be created from a transaction line in Global Ledger or an invoice distribution line in Payables. Split distributions are primarily used when an expense needs to be paid in full but covers multiple periods for an entity.

One example is insurance premiums. The premium would be paid in the current period and posted to a prepaid account. Then for the next six or twelve periods, a portion of the prepaid amount would be expensed.

  1. Open a Global Ledger transaction line on an unreleased journal entry or a Payables invoice distribution line.
  2. Click Recurring Entry.
  3. In the Recurring Journal Control section, specify this information:
    Select A Recurring Option
    Specify Add to add the recurring journal control record. The default value is None.
    Recurring
    Specify the journal type. Select Normal if all transactions are within the same accounting entity as the entity listed in the source structure.

    Select Inter Entity if the transactions cross accounting entities.

    Description
    Specify a description for the recurring journal control record. If this field is blank, then the description from the journal control record is the default value.
    Recurring Global Ledger Event
    Specify an event as the default value for the recurring journal entry transaction lines. If you leave this field blank, then the Global Ledger event from the journal control record is the default value.
    Reference
    Specify an optional reference.
    Beginning Year Period
    Specify the first calendar period when processing for the recurring journal entry begins.
    End Year Period
    Specify the ending calendar period when processing for the recurring journal entry ends.
    Posting Day
    Specify the day of the period that is used as the posting day on all transaction lines.
    Transaction Day
    Specify the day of the period that is used as the transaction day on all transaction lines.
  4. In the Recurring Journal Transaction section, specify this information:
    Finance Structure
    Specify the accounting entity, account, and any other element that is part of the finance structure. The default ledger value is from the journal control and cannot be changed.
    Recurring Transaction Amount
    Specify the amount of the transaction. This can be any amount up to the amount shown in the Remaining Transaction Amount.
    Recurring Units Amount
    Specify the units amount.
  5. Click Save.
    In the Totals section, the field totals for Total Of Created Recurring Transaction Lines and Remaining Transaction Amount are updated for the recurring journal entry transaction line that was created. A Recurring Journal tab is added to view the recurring journal control record and recurring transaction lines.
  6. If the Remaining Transaction Amount is greater than zero, create additional recurring transaction lines until the amount is zero. When creating additional transaction lines, specify this information:
    Select A Recurring Option
    The value must be Add.
    Finance Structure
    Specify the recurring transaction amount or units.
  7. Click Save.
    When the Remaining Transaction Amount reaches zero, the Recurring Entry tab is removed.