• Registered: 12/24/2011
  • Posts: 5

Topic: What are Document Date: and Event Date: in journal entries for?

Just upgraded from FA 2.3.x, and I notice there are some new data fields for Journal Entries, 'Document Date' and 'Event Date'.

I've been unable to find any documentation for what these fields represent -- how are they different from 'Journal Date'?

Also, it adds a bit more overhead to entries to enter 3 dates instead of 1, is there any way to suppress/hide these dates if they are of no use to me?

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: What are Document Date: and Event Date: in journal entries for?

Make the Journal Date alone mandatory and use it for the other two dates if empty.....

apmuthu's Website

  • From: Indonesia
  • Registered: 05/30/2018
  • Posts: 61

Re: What are Document Date: and Event Date: in journal entries for?

Following this discussion. These 3 distinct dates are there for separation, aren't they ?

I have got a scenario like this :

My company owed an invoice that's due 30 November 2018. But the finance department forgot to pay it until recently on 28 February 2019.

What would the journal be in this case ?

Do I put journal date 30 November 2018 and transaction/event date on 28 February 2019 ?

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  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: What are Document Date: and Event Date: in journal entries for?

The event date is "as on" that date. In your case, though the payment was due, it was actually paid later (hence use Feb 28th) as against if payment was made on the event date and was forgotten to be booked, then it would be Nov 30th..

apmuthu's Website

  • From: Indonesia
  • Registered: 05/30/2018
  • Posts: 61

Re: What are Document Date: and Event Date: in journal entries for?

Sorry, I think I did not explain the issue clear enough and clearly was not detailed enough
First, forget about the invoice overdue on november.

Let's change the scenario for a bit :
A salesman who works for us had score an extraordinary sales target last year (2018), hence the top-level has decided to give him the yearly bonus (say $1,000). But the bonus would not be given to him until 1st of March the following year (2019) via bank transfer. How would you enter this transaction into FA ?

Essentially, how do I make FA recognize this as expense in 2018, but the bank transaction that actually happens is recognized in 2019 ?

What I currently do (and hence think the correct way - but apparently not so )

(1) Make a Journal Entry with journal date 31/12/2018 and Event Date/Document Date 01/03/2019
     Wages $ 1,000 (C)
     Bank                        $ 1,000 (D)

(2) This way, the extra $ 1,000 is recognized as expense in December 2018

(3) Then, when I check on Bank Statement, I found that the transaction is journal-ed on 31/12/2018 whereas I thought it would be on 01/03/2019 Hence If I print monthly Bank Statement for March 2019, the transaction won't be there


So what I want to get out of this is :
(a) The extra bonus $ 1,000 is recognized as Expense in December 2018 when you print out P & L Statement of 2018
(b) When you print out March 2019 Bank Statement, there is that actual transaction for that


Please help me correct this
I'm more of a system developer background, not so much for accounting but I'm learning smile

Many thanks,
Arief

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  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: What are Document Date: and Event Date: in journal entries for?

# Booking the expense in 2018

2018-12-31: Commissions Payable Account Cr $1000 (a Balance Sheet Account)
2018-12-31: Commissions Expenses A/c - for the Year 2018 for Specific Salesman: Dr. $1000 (a P&L Expense Account)

# Making the decision to pay the commission if other conditions of service are fulfilled

2019-03-01: Commissions Payable Account Dr $1000
2019-03-01: Salesman A/c - Commissions due to Specific Salesman: Cr $1000 (a Balance Sheet Account)

# Making the payment from the bank account to the beneficiary salesman

2019-03-15 (or 01): Salesman A/c - Amount paid to Specific Salesman: Dr $1000
2019-03-15 (or 01): Bank Account - Check issued to Specific Salesman: Cr $1000 (a Balance Sheet Bank Account)

apmuthu's Website

  • From: Indonesia
  • Registered: 05/30/2018
  • Posts: 61

Re: What are Document Date: and Event Date: in journal entries for?

Ok. Thanks for the help @apmuthu. All is well now

Yeah, I though it was more of Accounting technicality rather than software technicality. I gotta agree /w the original post though that it's a little overhead work and kinda unnecessary to have 3 distinct dates because it's confusing

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