What Is a Journal Entry?

Every time your organization sells something, or buys something, or completes any business transaction, the transaction is most likely recorded as a journal entry. Those journal entries are later transcribed, or posted, to the appropriate accounts in your general ledger. Journal entries can be:

• created directly in General Ledger

• created in other Lawson applications, such as Accounts Payable, and interfaced to General Ledger

• created in non-Lawson applications and interfaced to General Ledger

Each journal entry is assigned a type; the types are based on options used to create them. The following table describes the four types of journal entries.

Journal Entry Type	Defined By	Description
Normal (N)	User	A normal journal entry is any entry you create within one company.
Intercompany (I)	From side: User To side: System	An intercompany journal entry crosses more than one General Ledger company. A transaction that resulted in the transfer of equipment from one company to another would require an intercompany journal entry.
Auto Reverse (A)	System	The period closing process creates auto reversing journal entries for journal entries that are flagged to auto reverse. These entries reverse the associated transactions in the next period or in another period you select. For example, you might auto reverse accrued travel expense entries.
Intercompany Auto Reverse (R)	System	The period closing process also creates auto reverse entries for all intercompany journal entries flagged to auto reverse. These entries reverse the associated transactions in the next period or in another period you select.