Journal Entries

Introduction

Journal entries are the atomic unit of accounting in Aevora. Every financial event — a patient payment, a supplier invoice, a payroll disbursement, a PhilHealth claim receipt — is recorded as a journal entry. Understanding how they work is essential for anyone with access to the Finance module.

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Key Concepts

Double-Entry Bookkeeping Primer

Every journal entry must have equal debits and credits. This is not optional — the system will not allow you to post an entry that is out of balance.

The rule is:

• Debit increases assets and expenses; decreases liabilities, equity, and revenue.
• Credit increases liabilities, equity, and revenue; decreases assets and expenses.

Example — Patient pays PHP 2,500 cash for an OPD consultation:

Account	Debit	Credit
Cash on Hand (1001)	PHP 2,500
OPD Consultation Fees (4001)		PHP 2,500

Cash (an asset) increases → debit. Revenue increases → credit. Debits = Credits = PHP 2,500. ✓

Example — Facility receives a supplier invoice for PHP 15,000 in medical supplies:

Account	Debit	Credit
Medical Supplies Inventory (1200)	PHP 15,000
Accounts Payable (2001)		PHP 15,000

Inventory (an asset) increases → debit. AP (a liability) increases → credit. ✓

Draft vs. Posted

State	Editable	Creates ledger movements	Appears in reports
Draft	Yes	No	No
Posted	No	Yes	Yes

Save as draft when you’re waiting for supporting documents, a supervisor needs to review the entry first, or you’re entering several related entries and want to review the batch before committing. Post when you’re confident the entry is correct and complete. Posted entries cannot be edited — to correct one, create a reversing entry.

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Use Cases

Creating a Journal Entry

1. Go to Finance → Journal Entries.
2. Click New Entry.
3. Fill in the header fields:

Field	Description
Transaction date	The date the transaction occurred — pre-filled with today, but you can change it
Reference number	Optional; use for OR numbers, check numbers, invoice numbers
Description	A brief narrative of what the entry records (required)

The entry date — the day the entry was recorded in Aevora — is captured automatically and shown alongside the transaction date in the entries list and when viewing an entry.

4. Add line items:

   • Click Add Line.
   • Select the account from the dropdown (searches by code or name).
   • Enter either a debit or credit amount — not both.
   • Add a line description if the line differs from the header description.
   • Repeat for each account affected.

5. The running Debit Total and Credit Total are shown at the bottom. They must be equal before you can post.

6. Click Save as Draft to save without posting, or Post to finalize.

Reversing a Posted Entry

1. Open the entry you want to reverse.
2. Click Actions → Reverse.
3. Enter the reversal date — this is typically the same date as the original entry, or the first day of the current period.
4. Add a reason (required) — this is included in the audit trail.
5. Click Confirm Reverse.

Aevora creates a new entry with all debits and credits swapped. Both the original and the reversal entry are linked and visible in each other’s records.

If the original entry was only partially wrong, post the reversal and then post a new corrected entry.

Voiding an Entry

To cancel an entry without deleting it:

1. Open the entry, or click the void (⊘) icon on its row in the entries list.
2. Click Void.
3. Enter a reason for voiding (required) — this is kept in the audit trail.
4. Click Void entry.

The entry stays in the ledger marked Voided and can no longer be edited or posted. Voided entries are excluded from financial reports. The reason is shown when you open the entry, and who voided it and when are recorded.

Closing an Accounting Period

At the end of each accounting period (typically month-end):

1. Review all draft entries and either post or discard them.
2. Reconcile bank accounts and AR sub-ledgers.
3. Post any accruals or prepaid adjustments.
4. Run the Trial Balance report to verify total debits = total credits.
5. Generate the Income Statement and Balance Sheet for management review.

Once a period is closed in Aevora (by an administrator), entries can no longer be posted into that period. This prevents retroactive changes to finalized financial statements.

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Reference

Common Entry Types

Patient Cash Payment

Account	Debit	Credit
Cash on Hand	PHP amount
Accounts Receivable — Private Pay		PHP amount

Use the AR account if a balance existed; use Revenue directly for same-day full payments at OPD.

PhilHealth Claim Receipt (when PhilHealth reimburses a claim)

Account	Debit	Credit
Cash in Bank — Operating	PHP reimbursement
Accounts Receivable — PhilHealth Claims		PHP reimbursement

HMO Claim Receipt

Account	Debit	Credit
Cash in Bank — Operating	PHP reimbursement
Accounts Receivable — HMO Claims		PHP reimbursement

Supplier Invoice (Medical Supplies)

Account	Debit	Credit
Medical Supplies Inventory	PHP invoice amount
Accounts Payable		PHP invoice amount

Supplier Payment

Account	Debit	Credit
Accounts Payable	PHP amount paid
Cash in Bank — Operating		PHP amount paid

Payroll Disbursement

Account	Debit	Credit
Salaries Expense	Gross amount
SSS Contributions Payable		SSS share
PhilHealth Contributions Payable		PhilHealth share
Pag-IBIG Contributions Payable		Pag-IBIG share
Withholding Tax Payable		Tax withheld
Cash in Bank — Payroll		Net pay

Searching and Filtering

From the Journal Entries list, you can filter by:

• Date range — period-based view for month-end review
• Status — Draft or Posted
• Account — all entries touching a specific account
• Reference number — find by OR, check, or invoice number
• Posted by — audit trail by staff member

Audit Trail

Every journal entry records the staff member who created it, the staff member who posted it (may differ), the date and time of creation and posting, who voided it and why, and any reversals linked to it. This trail is permanent and cannot be edited or deleted — it satisfies the audit requirements of the Bureau of Internal Revenue (BIR) and external financial auditors.

Permissions

Managing journal entries requires the journal-entries permission (view / create / update / post / void).