FI Documents and the Journal Entry Type
Each financial accounting document is assigned to a certain type of business transaction by means of a journal entry type. Either the journal entry type is proposed automatically by the system when FI documents are entered, or the user enters or changes it manually.
The journal entry type is often used in reporting as a characteristic for identifying certain transactions. Due to the selection of an unsuitable journal entry type in the posted document, documents may be missing in evaluations or may be displayed incorrectly in reports.
In the general ledger, journal entry types are used for postings. However, journal entry types are also required for postings that originate from customer, vendor, or asset accounting.
In addition, the journal entry type is often used as a search criterion. For example: If you want an overview of the given customer credit memos, you search for documents with the journal entry type customer credit memo.
This means that if a customer credit memo is incorrectly posted with the journal entry type DR (customer invoice) instead of DG (customer credit memo), this document would be missing in the evaluation, or other reporting would not be correct.
For this reason, it is important that the correct journal entry types are proposed by the system as automatically as possible and that the users know exactly when they have to change them.