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Automatic Journal Flow

In Kezi , you rarely need to create manual journal entries. Most financial records are generated automatically as a byproduct of your daily business operations.

The "Everything is a Journal" Philosophy

The system is built on a "Double-Entry" foundation. Every time you perform an action that has financial value, the system generates a Journal Entry in the background.

For example:

  • Validating a Vendor Bill: Automatically generates a debit to an expense/asset account and a credit to Accounts Payable.
  • Recording a Customer Payment: Automatically generates a debit to a Bank/Cash account and a credit to Accounts Receivable.
  • Selling Inventory: Automatically generates entries for Revenue, Tax, and Cost of Goods Sold (COGS).

Automatic vs. Manual Entries

Feature Automatic Entries Manual Journal Entries
Origin Triggered by business documents (Bills, Invoices, Payments). Created directly in the Journal Entries module.
Source Document Linked to the original transaction (e.g., Bill #102). No mandatory source document; uses a Reference field.
Automation Accounts, taxes, and amounts are calculated by the system. You must manually select accounts and ensure Debits = Credits.
Usage Standard daily operations. Adjustments, corrections, depreciation, and opening balances.

Understanding Journal Entry Statuses

Regardless of whether they are automatic or manual, all journal entries go through a lifecycle:

📝 Draft

Draft entries are "candidate" records.

  • They do not affect your financial reports (Balance Sheet, P&L).
  • They can be edited or deleted.
  • Automatic entries often start as Drafts when the source document (like a Vendor Bill) is in "Draft" or "Awaiting Approval" status.

✅ Posted

Posted entries are finalized records.

  • They update your General Ledger immediately.
  • They are locked for editing to ensure an audit trail.
  • To change a Posted entry, you must Reverse it to create a counter-entry.

Why Manual Entries Still Exist

Manual entries are the "safety valve" of the accounting system. They are used for:

  1. Adjusting Entries: Year-end adjustments for accruals or prepayments.
  2. Depreciation: Recording the loss of value in fixed assets over time.
  3. Corrections: Moving a balance from an incorrectly selected account to the correct one.
  4. Opening Balances: Bringing in historical data when you first start using the system.