Journal entry plans and ledger accounts
A key element in the connector between the Novulo Ledger accounting software and the sub administrations (see Novulo Finance: Ledger Administration and Sub Administration) is the Journal Entry Plan (boekingsschema).
Within a ledger administration (grootboekadministratie) there are many ledger accounts (grootboekrekeningen), for example:
8000 Turnover food
8010 Turnover drinks
1300 Accounts receivable
3000 Stock
In the sub administration, you will need to register to which ledger account the journal entries must be made. So, for example, you need to specify that for the Sales product Sandwich (food), any turnover must be booked on the 8000-account and the turnover for the coffee (drinks) must be booked on the 8010 account.
This is done at Product level.
In the Novulo application, you can see that you can not link a ledger account to a sales product, but you can link a Journal Entry Plan (boekingsschema) instead. This KB article explains why.
The reason of the journal entry plan
When your software is covering more than one administration, it can occur that you have differences in the numbering scheme. For example, when your application is supporting ledger administrations in different countries with different rules and regulations regarding the numbering scheme.
For example, in the Netherlands, turnover is typically booked on a Ledger account starting with an 8, e.g. 8000.
In Belgium, regulators prescribe that turnover is booked on a ledger account starting with a 7, e.g. 700001.
Now, when you sell the sandwich (in the example above) in the Netherlands, turnover must be booked on the Dutch Administration and on the ledger account 8000. When your Belgian subsidiary sells the same sandwich, turnover must be booked on 700001 in the Belgian Administration.
The Journal Entry Plan allows you to create one plan for “Food”. In this Journal Entry Plan, you can define the different ledger accounts for each individual administration. This allows for storing this data in one place and facilitates data entry in the sub administration, in this example in the Product Information Management system.