The ‘accounting cycle’ image provided on page 22 of attached accounting summary document provides a good visualization of steps involved from ‘economic activity step (transaction)’ to closing books for a given cycle period (weekly/monthly/quarterly/yearly)

The Journal entries view would look similar to the below mock up

3.1        Automated Journal Entries

Mifos X to automatically log (log each transaction as a separate journal entry….no need of daily consolidation etc.)

• Disbursals
• Repayments
• Rescheduling
• Write-Off
• Adjustments

These journal entries should not have permissions to be altered from the accounting UI (like manually created journal entries which can be reversed etc.)

They should link back to the entity that generated them (the loan transaction etc. so that a user can analyse the same).

They may only be altered with events generating from the system (Example: a user reverts a loan disbursal etc.)

3.2        Manual Journal Entries

For a manual entry, allow “m” debit and “n” credit entries for a “Journal Entry entered by a user” as long as the sums of all debits and credits match.

Allow journal entry reversal (system automatically logs reversal entries of corresponding debits and credits).

This means each journal entry batch must have a batch Id (so all individual entries under it can be identified for easy reversal).