Journal Entries

CEF Core distinguishes between two categories of journal entries based on their source.

Follow these steps to create a manual journal entry through the UI.

1. Navigate to GL → Journal Entries: Open the sidebar, expand the Accounting section, and click Journal Entries. You will see the list of recent entries with date range filters.
2. Click "+ New Entry": Opens the journal entry form.
3. Enter the description: A clear, concise description of the purpose of the entry (e.g., "Monthly loan loss provision adjustment").
4. Set the value date: The date the entry takes effect, in YYYY-MM-DD format. Must fall within an open accounting period. Backdated entries to closed periods will be rejected.
5. Add journal lines: Each line requires:
   • gl_code -- The GL account number (e.g., 1200, 6000)
   • debit -- Amount to debit (or 0)
   • credit -- Amount to credit (or 0)

   Each line must have either a debit or a credit amount, not both. Add as many lines as needed.

6. Verify the balance: The form displays a running total of debits and credits. Both totals must match exactly before the Save button becomes active.
7. Save the entry: Click Save. The system calls POST /api/v1/gl/journal-entries with an idempotency key to prevent duplicate postings.

CEF Core enforces strict double-entry balance rules at multiple levels. Every journal entry must balance to the penny before it can be posted.

When you perform a transaction in a subledger (Loans, Investor Notes, Cash, or Fees), the subledger service automatically creates a journal entry in the GL. You do not need to create these entries manually.

Loans Subledger

• Disbursement: DR 1200 (Loans Receivable) / CR 1010 (Operating Checking)
• Payment - principal: DR 1010 (Operating Checking) / CR 1200 (Loans Receivable)
• Payment - interest: DR 1010 (Operating Checking) / CR 1300 (Accrued Interest Receivable)
• Interest accrual: DR 1300 (Accrued Interest Receivable) / CR 4000 (Interest Income)

Investor Notes Subledger

• Note issued: DR 1010 (Operating Checking) / CR 2000 (Notes Payable)
• Note redeemed: DR 2000 (Notes Payable) / CR 1010 (Operating Checking)
• Interest accrual: DR 6000 (Interest Expense) / CR 2100 (Accrued Interest Payable)
• Interest payment: DR 2100 (Accrued Interest Payable) / CR 1010 (Operating Checking)

Cash Subledger

• Receipt: DR 1010 (Operating Checking) / CR varies by source
• Disbursement: DR varies by purpose / CR 1010 (Operating Checking)

Fees Subledger

• Fee charged: DR receivable / CR fee income account
• Fee collected: DR 1010 (Operating Checking) / CR receivable

The journal entries list provides filters to locate specific entries. Navigate to Accounting → Journal Entries to access the list.

Available Filters

• ✓Date Range: Filter by startDate and endDate to view entries within a specific period. Defaults to the current month.
• ✓Source: Filter by entry source (MANUAL, LOANS, INVESTOR_NOTES, CASH, FEES) to see only entries from a specific subledger.
• ✓GL Code: Search for entries that include a specific GL account to see all activity on that account.
• ✓Pagination: Results are paginated using limit and offset parameters. Default limit is 50 entries per page.

Click on any entry row to expand it and see the full list of journal lines with GL codes, descriptions, and debit/credit amounts.

CEF Core enforces the four-eyes principle for journal entries exceeding $10,000. This applies to the total debit amount of the entry.

1. Maker creates the entry: The API returns HTTP 202 Accepted with an approval_id. The entry is not yet posted to the GL.
2. Notification sent: Authorized approvers are notified via the approval notification job (runs every 30 minutes).
3. Checker reviews: Navigate to Admin → Approvals, review the entry description, lines, and amounts, then Approve or Reject.
4. Entry posts: Once approved, the scheduled job (every 15 minutes) executes the approved request and the journal entry appears in the GL.

Journal entries are managed through the GL API. All requests require JWT authentication and an idempotency key header for POST operations.

POST Request Body

{
  "description": "Monthly loan loss provision",
  "value_date": "2026-03-31",
  "lines": [
    { "gl_code": "6100", "debit": 5000.00, "credit": 0 },
    { "gl_code": "1400", "debit": 0, "credit": 5000.00 }
  ]
}

• ✓Use Descriptive Descriptions: Include enough detail to understand the entry without seeing the lines. Good: "Q1 2026 loan loss provision increase". Bad: "Adjustment".
• ✓Post to the Correct Period: Set the value_date to the accounting period the entry belongs to. Do not backdate into closed periods.
• ✓Never Edit Posted Entries: Journal entries are immutable once posted. To correct an error, create a reversing entry with opposite debits and credits, then post the correct entry.
• ✓Review Before Month-End Close: Run the trial balance report and review all manual entries for the period before closing. Once the period is closed, no new entries can be posted to it.
• ✓Let Subledgers Do the Work: Avoid manually posting entries for loan payments, note issuances, or cash receipts. Use the subledger interface and let the system generate the GL entries automatically.