Enter a transitory item

You can generate transitory entries from an entry in a revenue or cost account, for example, the entry of a purchase or sales invoice. During the entry, you specify the settings for the transitory item. After you have completed the entry, Profit generates the transitory items.

Once you have made a transitory entry, the link between the transitory items and the main journal entry from the purchase/sales/bank/general journal remains. There is a link between the original entry (invoice) and the transitory items that originate from it.

To enter a transitory item:

1. Go to: Financial / Enter / Journal.
2. Check the Financial year and Period. These are the financial year and the period to which you post the entry.
3. Select the purchase journal.
4. Click on: Finish.
5. Enter the first entry line. This is the Total line of the outstanding item.
6. In the second line, you select the cost or revenue account.

   If you have specified for the ledger account that there are no VAT entries for this ledger account (on the Preferences tab) then the VAT column is skipped. Profit does not generate a VAT line in that case.

7. Click on the action: Transitory item.
8. Enter the financial year and period range for the outstanding items.
9. Select the rounding method in Rounding if you want Profit to round the period amounts automatically, for example, to hundreds.
10. By default, Profit copies the suspense account from the administration settings, but you can change this.
11. Click on the action: F5. Select.

    Profit automatically determines the number of periods and adds one entry per period. The number of periods is displayed as well as the amount per period.

12. Change the amount per period in the Amount column.
13. Click on: Finish.

    Complete the entry.

14. Click on: Finish.
15. Click on: Yes.

    After you have completed the entries, Profit generates the transitory items.