Making the 5 Step Entry Process a Habit

Forming good data entry practices and following them is essential to proper bookkeeping. All accounting entries in the accounting system should be accomplished using this 5-Step Entry Process. This process will ensure that only valid data is entered and posted into the system.

5-Step Entry/Posting Cycle

In the accounting system, live data is put into the system using the 5-Step Entry Process. This process is the same for entry of Timesheets, Accounts Payable Invoices, Accounts Receivable Invoices, General Ledger Transactions and Inventory. Once this process is learned, it will be easy to enter the data correctly.

1. Data Entry

The first step is to enter the information into the entry screen, assigning costs to correct Job Cost Codes or General Ledger Accounts.

Payroll entry programs include Timesheet by Job, Timesheet by Employee and Handcheck and Voided Checks. Accounts Payable entry programs include Trade, Subcontractor and Retention Payment Invoices. Accounts Receivable entry programs include Trade Invoice, Progress Billing and Receipts. The only General Ledger entry program is Transactions.

2. Proof Listing

Each of the entry programs is followed by a Proof Listing option. This proof listing shows all the entries in the Batch and their corresponding cost distributions.

Proof Listings are printed out so that the entries can be compared to the original documents (timesheets, invoices, etc.) for accuracy. Any entries which need to be changed can be highlighted.

3.Edit

Return to the original entry screen to edit the entries. For example: to edit an Invoice, go to the Invoice Entry screen. Using the Invoice proof listing, simply select the correct invoice from the Invoices Included in Batch list. Highlight the desired invoice and press the Change button or double click on the invoice. The system will bring the invoice to the screen for editing.

4. Backup Data Files

When the Batch of entries is correct, a backup should be made of the accounting system data files for safety reasons.

At the end of each posting, there is the opportunity to Undo the posting. This means that if anything goes wrong with computer hardware or power during the posting, all files can be set back to their pre-posting state. Note: Once the Finish button is pressed, however, the posting becomes permanent and the only way to return the accounting system files to their pre-posted state is by restoring a reliable backup.

5. Post

The last step of the process is to post the information to the desired fiscal period. During this posting, the information is written to permanent job cost, general ledger, and history files. Reports are generated which describe the transactions and their effect on the permanent files.

Remember, learning this 5-Step Entry Process now will provide a head start on learning each of the individual modules.