The Prior Journal Entry method process is:

1. The Subledger Accounting program uses the applied to accounting attributes to identify the accounting for a transaction or event upstream in the business flow.

2. The Subledger Accounting program searches the accounting event for entries having the same business flow class as the entry currently being created.

   Note: In budgetary control mode, the Subledger Accounting program ignores draft entries for business flows since Draft equates to funds checking which does not persist.

3. Upon finding a match, the Subledger Accounting program copies certain values from this entry to the current entry.

Copy from Prior Entry Example

This example includes the following steps based on the purchase order described in the table below which describes two distributions for the purchase order.

Purchase Order Distributions

1. A receipt for this purchase order is entered and accounted as described in the table below.

   Journal Line Types Name	Event Class	Side	Business Flow Method	Business Flow Class
   PO Charges	Goods Received	DR	None	NULL
   PO Accruals	Goods Received	CR	None	Purchased Goods

2. The Subledger Accounting program uses the journal line types in the table above to create journal entries as described in the table below.

   Note: The journal line type used to create an entry is not stored on the entry and it is referenced only for clarity.

   Goods Received Accounting Event Entry

   Line Number	PO Distribution ID	GL Account	Debit	Credit	Business Flow Class	Created Using Journal Line Type
   1	1011	01-101 Exp	75.00		NULL	PO Charges
   2	1012	01-102-Exp	25.00		NULL	PO Charges
   3	1011	01-101-Accr		75.00	Purchased Goods	PO Accruals
   4	1012	01-102-Accr		25.00	Purchased Goods	PO Accruals
   		Totals	100.00	100.00

   The following notes relate to the table above.

   • Lines 1 and 2 were created using the journal line type PO Charges, which does not use business flow functionality and has no business class.

   • Lines 3 and 4 were created using the journal line type PO Accruals, which has no business flow method but does have a business flow class of Purchased Goods that is stored on the resulting lines. It is possible to have a journal line that has no business flow method but does have a business flow class.

   • The GL account for all four lines was created using basic account derivation rules that copy the account from the PO distributions.

3. An invoice is entered and matched to the purchase order.

   The liability assigned to the invoice is 01-000-Liab. The table below describes the invoice distributions.

   Invoice Distributions

   Distribution Number	Distribution ID	Distribution Amount	GL Account	Applied to Distribution ID
   1	201	75.00	01-117-Chrg	1011
   2	202	25.00	01-118-Chrg	1012

4. The invoice is accounted.

   The Subledger Accounting program uses the journal line types described in the table below to create a journal entry for the Invoice Validated accounting event.

   Journal Entry for Invoice Validated Account

   Journal Line Type Name	Event Class	Side	Business Flow Method	Business Flow Class
   AP Accruals	Invoice Validated	DR	Prior Entry	Purchased Goods
   AP Inv Liability	Invoice Validated	CR	None	NULL

5. The accounting for the invoice creates the journal entry lines described in the table below.

   Invoice Validated Accounting Event Entry

   Line Number	Invoice Distribution ID	GL Account	Debit	Credit	Business Flow Class	Created Using Journal Line Type
   1	201	01-101-Accr	75.00		Purchased Goods	AP Accruals
   2	202	01-102-Accr	25.00		Purchased Goods	AP Accruals
   3	201	01-000-Liability		75.00	Purchased Goods	AP Inv Liability
   4	202	01-000-Liability		25.00	NULL	AP Inv Liability
   		Totals	100.00	100.00

Lines 1 and 2 of the journal entry of the Invoice Validated accounting event are created as follows:

1. The Subledger Accounting program uses the identifiers in the Applied to Distribution column in the Invoice Distributions table, to find the most recent journal entry for those distributions.

   These values are entered in the PO Distribution ID column of the Goods Received Accounting Event Entry table.

2. The Subledger Accounting program searches this entry for lines that have the same business flow class as the current entry.

   In this example, PO distributions 1011 and 1012 each occur twice in the journal entry as described in the Goods Received Accounting Event Entry table.

   Only lines 3 and 4 of the Goods Received accounting event have the same business flow class as the current lines, which are described in the Invoice Validated Accounting Event Entry table.

3. The Subledger Accounting program copies the GL account in lines 3 and 4 of the Goods Received Accounting Event Entry table, from these lines onto the current lines, which are described in the Invoice Validated Accounting Event Entry table.

   Had the General Ledger account described in the Invoice Distributions table from the invoice distributions been used, the accounts credited on lines 3 and 4 of the Goods Received Accounting Event table would never have been reversed leading to unbalanced General Ledger accounts.

   Note: There is no special rule used to derive the invoice liability account. The liability account on lines 3 and 4 of the Invoice Validated Accounting Event Entry table are taken directly from the General Ledger account specified on the invoice itself.