Before you begin, make sure you:
Ensure you have the necessary permissions to create journals in GATHER.nexus
Have your Chart of Accounts (GRT) properly set up with balance sheet accounts
Understand which intercompany balances need elimination or adjustment
Know the specific amounts and timing for your consolidation adjustments
Consider whether your journal entries should reverse in the following month
Understanding balance sheet journal options
Reversing Balance Sheet Journal
Automatically reverses in the following month
Ideal for temporary adjustments
Activated by ticking "REVERSES in the Next Month"
Step-by-step guide
Step 1: Access the journal creation
Navigate to Group Financial Reporting from your main dashboard
Click on the Journals tab in the top navigation
Select Add Journal (green button in the top right corner)
Choose Journal from the dropdown menu (not recurring journal)
Step 2: Set up your journal basics
Narration: Enter a clear, descriptive name for your journal (e.g., "Demo Narration 4")
Make it specific enough to identify the purpose
Consider including the adjustment type, like "Intercompany Elimination Jan 2025"
Date: Select the journal date using the date picker (e.g., "01-05-2025")
This determines which period the journal affects
Ensure it aligns with your consolidation period requirements
Group: Select your relevant group from the dropdown
This determines which legal entities the journal impacts
Usually pre-populated based on your access permissions
Ref No #: The system automatically assigns a reference number (e.g., "10")
This creates a unique identifier for audit trail purposes
Each journal gets a sequential reference number
Step 3: Configure journal settings
GRT: Choose your Group Reporting Template from the dropdown
This links to your standardised chart of accounts
Essential for proper consolidation mapping across entities
Remember: Only those GRT Accounts with Balance Sheet GRT will be able to have Consolidated Balance Sheet Journal entries
Tag: Select the appropriate classification for your journal:
Elimination: For removing intercompany transactions and balances
Reclassification: For moving balances between account classifications
Accounting Adjustment: For GAAP adjustments or accounting policy changes
Other: For adjustments that don't fit the above categories
Include Group Class: Tick this checkbox if your journal affects Group Class reporting segments
Important for preparing Group Class segmental reporting
Group Class: If enabled, select the relevant group class (e.g., "Demo Class - Class Value 1")
This determines which business units or segments are affected
Step 4: Set up reporting and reversal options
Tag Reporting Cadence for Journal: Tick this checkbox to tag the journal with the Reporting Period to which the Journal relates (monthly, quarterly, semi-annually, annually)
Helps with compliance and audit preparation
Recommended for all consolidation adjustments
REVERSES in the Next Month: This is a crucial decision point
Tick this box if you want the journal to automatically reverse in the following month
Leave unticked if the adjustment should remain permanent
Perfect for temporary adjustments that need to reset each period
Important: The reversal option cannot be changed after the journal is created, so choose carefully based on your adjustment's nature.
Step 5: Create your journal entries
GRT Account: Click the dropdown to select your first account
Choose from your mapped balance sheet accounts
Example: "1400 - Demo Current Asset" for asset adjustments
Description: Enter a clear description of the journal line
Be specific about the purpose (e.g., "Demo Current Asset" or "Intercompany Elimination")
This appears in detailed reports and working papers
Debit/Credit columns: Enter your amounts in the appropriate columns
For the current asset example: enter 200 in the Debit column
Ensure you follow proper accounting principles for balance sheet items
Add Another Line: Click the green Add Another Line button for offsetting entries
Example: "7100 - Intercompany Equity" with 200 in the Credit column
Continue adding lines until your journal balances perfectly
Step 6: Advanced balance sheet features
Net Positions column: This appears for balance sheet journals
Shows the date when each journal line will be effective
Helpful for tracking timing of consolidation adjustments
Displays the period each adjustment impacts
Multi-period adjustments: You can create entries for different periods within the same journal
Set different dates for each journal line as needed
Example: Some lines for "Jan, 2025" and others for "Apr, 2025"
Perfect for phased consolidation adjustments
Remove lines: Use the minus (-) button to delete unwanted journal lines
Appears when you have multiple lines with different dates
Helps maintain clean, accurate journal entries
Step 7: Balance verification and notes
Review your totals:
Total: Shows your total debits and credits (must match)
Difference: Must show 0 for the journal to be valid
The system won't allow you to save unbalanced entries
Notes section: Add detailed explanations for your consolidation adjustment
Limited to 500 characters
Reference supporting documentation or business rationale
Step 8: Save your journal
You have three options for completing your journal:
Save as Draft: Use the Save as Draft button to save your work in progress
The journal is saved but not posted to your books
You can return to edit and complete later
Useful for complex journals requiring approval
Add: Click the Add button to create and post your journal immediately
This commits the journal to your consolidation
The adjustment takes effect in your consolidated balance sheet
Creates the journal with current date stamp
Cancel: Use this to exit without saving any changes
No journal is created
Use if you need to start over or abandon the entry
Step 9: Understand reversal mechanics
If you selected "REVERSES in the Next Month":
The system automatically creates a reversing entry in the following month
The reversal uses the same accounts but opposite debit/credit amounts
This ensures temporary adjustments don't carry forward incorrectly
If you left "REVERSES in the Next Month" unticked:
The journal remains in place until manually adjusted - just like a traditional accounting balance sheet entry
Confirming your success
After creating your balance sheet journal, you'll see:
Your new journal appears in the main "Journal" view with "Published" status
All journal details are visible including narration, group, amount, and creation date
The journal is integrated into your consolidation working papers
If reversing, you'll see the automatic reversal scheduled for next month
You can verify the journal by:
Checking that the Status shows "Published"
Confirming the Amount reflects your total journal value
Reviewing the GRT link to ensure proper account mapping
Verifying the creation date and user information
Advanced balance sheet journal management
Viewing journal details: Click on your created Edit Icon to see the full preview
Review all journal lines and their effective dates
Check the balance sheet impact across different periods
Verify proper account classifications and amounts
Stacked Balance Sheet Journal Preview functionality
Journal Summary tab: Your primary overview interface
Displays all basic journal information and settings
Shows journal narration, group, GRT, and reference number
Provides quick access to edit the overall journal structure
View/Edit Month-End Balance tab: This is where the powerful monthly management happens
Displays every month from January through December
Shows the status of your journal for each individual period
Provides granular control over when your journal is active
Managing monthly journal status
Mark as Inactive functionality: Each month row includes a "Mark as Inactive" button
Purpose: Temporarily disable the journal for specific months without deleting it
Use case: Perfect when you need to skip the journal for particular periods
Process: Click "Mark as Inactive" next to any month (e.g., "Mar, 2025")
Result: The journal won't affect that month's consolidation but remains available for other periods
Flexibility: You can selectively disable multiple months as needed
Mark as Active functionality: Re-enable journals for specific periods
Purpose: Reactivate journals that were previously marked as inactive
Process: Click "Mark as Active" for any inactive month
Visual indicator: Active months show "Mark as Active" status clearly
Restoration: Immediately restores the journal's impact for that period
Status tracking: The system clearly shows the current state of each month
Active months: Display "Mark as Inactive" option indicating they're currently active
Inactive months: Show "Mark as Active" option indicating they're currently disabled
Easy identification: You can quickly scan which months are affected by your journal
Edit functionality for individual months
Monthly edit capabilities: Each month includes an "Edit" button for granular control
Access: Click "Edit" next to any month (e.g., "Apr, 2025") to modify that specific period
Purpose: Make changes to journal entries for individual months without affecting others
Flexibility: Different months can have different journal amounts or account treatments
Edit/Add Stacked Balance Sheet Journal interface: When you click edit, you access:
Complete journal editing: Modify narration, date, group, and reference number
Account line management: Add, edit, or remove individual journal lines
Date-specific adjustments: Set different effective dates for each journal line
Net Positions tracking: Monitor when each adjustment takes effect
Advanced editing features
Adding new journal lines: Within the edit interface
Add Another Line: Click the green "Add Another Line" button to create additional entries
Account selection: Choose from your full GRT account listing
Description flexibility: Add specific descriptions for each line
Amount management: Set different debit/credit amounts for each line
Date control: Assign different effective dates (e.g., "Jan, 2025" vs "Apr, 2025")
Managing existing lines: For journals with multiple entries
Line removal: Use the minus (-) button to delete unwanted journal lines
Line modification: Edit account selections, descriptions, or amounts
Date adjustment: Change the effective date for individual lines
Balance maintenance: Ensure total debits equal total credits
Reversal option management during editing
Without "REVERSES in the Next Month" ticked:
Standard behaviour: Journal entries impact each subsequent reporting period - the same as a normal accounting Balance Sheet entry
Update process: Click the green "Update" button to save your changes
With "REVERSES in the Next Month" ticked:
Reversal behaviour: Journal automatically reverses in the following month
Update process: Click the green "Update" button to save changes with reversal enabled
Automatic reversal: System creates opposite entries in the next period
Important: Once updated with reversal enabled, the system manages the reversal automatically
Update vs. Update as Draft options
Update button: Commits your changes immediately
Effect: Changes take effect in your consolidation immediately
Reversal handling: If reversal is ticked, automatic reversal is scheduled
Status: Journal remains "Published" with updated content
Audit trail: Creates record of modifications with timestamp
Update as Draft button: Saves changes without publishing
Effect: Changes are saved but don't affect your consolidation yet
Review opportunity: Allows further review before final commitment
Status: Journal status changes to reflect draft state
Flexibility: You can continue editing before final publication
Multi-period journal management
Cross-period adjustments: The stacked view excels at managing journals that span multiple periods
Date-specific entries: Different journal lines can have different effective dates
Period control: Enable/disable the journal for specific months
Net Positions column benefits:
Timing visibility: Shows exactly when each adjustment takes effect
Period planning: Helps plan consolidation adjustments across multiple periods
Audit trail: Clear record of which adjustments affect which periods
Compliance: Ensures proper period allocation for regulatory requirements
Best practices for stacked journal management
Regular review process: Establish monthly review routines
Status verification: Check that active/inactive settings match your needs
Amount validation: Ensure journal amounts still reflect current requirements
Date accuracy: Verify effective dates align with your consolidation schedule
Balance confirmation: Ensure all periods maintain proper journal balance
Documentation standards: Maintain clear records
Edit rationale: Document why changes were made to specific periods
Version control: Keep track of when and why journals were modified
Approval process: Ensure proper approval for material changes
Audit preparation: Maintain clear records for external auditors
Pro Tip: The stacked balance sheet journal preview is your command centre for complex consolidation adjustments. Use the monthly enable/disable features to fine-tune exactly when your adjustments take effect, and leverage the editing capabilities to handle evolving business requirements without creating separate multiple journals in separate columns in the Working Papers.
Common questions
Q: Can I change the reversal setting after creating the journal?
A: No, the "REVERSES in the Next Month" setting cannot be modified after creation. You'll need to create a new journal with your preferred setting.
Q: What happens if I mark a month as inactive in the stacked view?
A: The journal adjustment won't affect that specific month's consolidation, but it remains active for other periods.
Q: How do I handle intercompany eliminations that span multiple periods?
A: Use the multi-period functionality to set different dates for each journal line, or create separate journals for each period.
Q: Can I edit a published balance sheet journal?
A: Published journals can be viewed but not edited.
Q: Why isn't my journal balancing?
A: Check that your total debits equal total credits. The "Difference" line must show 0 before you can save the journal.
What's next?
Once your balance sheet journal is created:
Review the impact in your consolidated balance sheet reports
Check that intercompany eliminations are working correctly
Monitor the automatic reversal (if applicable) in the following month
Consider creating additional journals for other consolidation adjustments
Document the journal's purpose and supporting rationale for audit purposes
Have questions or need assistance❓
Contact our support team at support@gather.nexus