Journal Entries & Generation

Journal Entries & Generation

Journal entries are the atomic records of CryptaCount’s double-entry bookkeeping system. Every balance change — whether from an on-chain transaction, a CEX trade, or a manual adjustment — is expressed as a journal entry with balanced debits and credits.

Viewing Journal Entries

Navigate to Accounting → Journal Entries to browse the full journal ledger.

Ledger View

The journal ledger displays entries in reverse chronological order with:

• Entry date — When the economic event occurred
• Posted date — When the entry was posted to the ledger
• Reference — Source transaction hash, CEX trade ID, or manual reference
• Description — Auto-generated or user-provided narrative
• Accounts — Debit and credit GL accounts with amounts
• Status — Draft, Posted, or Reversed
• Hash — Truncated hash for chain verification

Filtering & Search

Filter journal entries by:

Filter	Options
Date range	Custom start/end dates
GL account	Specific account or account type
Status	Draft, Posted, Reversed
Transaction type	Source transaction classification
Amount range	Min/max amounts
Reference	Free-text search on reference field

Search supports partial matching on descriptions and references. Results can be exported to CSV or Excel.

Journal Entry Detail

Click any entry to view its full detail:

Each entry shows:

• Header — Date, reference, description, status, created-by user
• Lines — Each debit and credit line with GL account, amount, and optional memo
• Source — Link to the originating transaction (if auto-generated)
• Hash chain — Current entry hash plus link to predecessor
• Audit trail — Who created, posted, or reversed the entry and when
• Attachments — Any supporting documents linked via audit attachments

Creating Manual Entries

To create a journal entry manually:

1. Click New Entry
2. Set the entry date and description
3. Add debit lines — select GL account, enter amount, optional memo
4. Add credit lines — total credits must equal total debits
5. Save as Draft or Post immediately

Example: Acme Digital Holdings records a year-end accrual:

Account	Debit	Credit
Accrued Expenses — Audit Fees	€15,000
Accounts Payable		€15,000

Posting Draft Entries

Draft entries do not affect account balances until posted. To post:

1. Open the draft entry
2. Review the lines
3. Click Post
4. The entry is assigned a hash, linked into the hash chain, and account balances update

Posting is irreversible in the sense that the entry cannot be edited after posting. To correct a posted entry, reverse it and create a new entry.

Reversing Entries

Reverse a posted entry to undo its effect:

1. Open the posted entry
2. Click Reverse
3. CryptaCount creates a new entry with all debits and credits swapped
4. Both the original and reversal entries are linked for audit trail

The reversal entry carries a reference to the original entry (e.g., “Reversal of JE-00412”). Both entries remain in the ledger — nothing is deleted.

Reassigning GL Accounts

If journal entries were posted to incorrect GL accounts:

1. Navigate to Balances → Reassign GL
2. Select the entries to reassign
3. Choose the correct GL accounts
4. CryptaCount generates reversal and re-posting entries automatically

Tamper-Evident Journal Hashing

CryptaCount implements a cryptographic hash chain across journal entries to ensure ledger integrity.

How It Works

Each journal entry’s hash is computed from:

• The entry’s date, lines (accounts, amounts), description, and metadata
• The hash of the previous journal entry in the chain

This creates a linked chain: modifying any historical entry changes its hash, which breaks the chain for all subsequent entries.

Verification

The hash chain is verified during:

• Period close checks — The close workflow includes a hash chain integrity check
• On-demand verification — Run hash chain verification from the accounting pipeline
• Reconciliation — The full reconciliation suite includes ledger replay with hash verification

A broken hash chain indicates that an entry was modified outside the normal workflow — a critical audit finding.

Tip

The hash chain provides tamper evidence, not tamper prevention. It ensures that any unauthorized change is immediately detectable during the next verification cycle.

Generate & Migrate Journals

The journal generation tool under Accounting → Generate Journals handles batch processing for scenarios where journals need to be created or recreated in bulk.

Use Cases

Scenario	Description
Historical migration	Generate journals for transactions that predate the accounting pipeline setup
Rule changes	Regenerate journals after modifying accounting rules to apply new classifications
Bulk re-posting	Reprocess a date range after correcting GL mappings or cost basis settings
System migration	Generate CryptaCount journals from data imported from another platform

Running a Generation

1. Navigate to Accounting → Generate Journals
2. Select the scope:
   • Date range — Process all transactions within the specified dates
   • Wallet — Process only transactions for specific wallets
   • Transaction type — Limit to specific transaction classifications
3. Click Start Generation
4. Monitor progress in the status panel:
   • Transactions processed / total
   • Journals created
   • Errors encountered
5. Review any errors before completing

Controls

Action	Description
Start	Begin journal generation for the selected scope
Cancel	Stop an in-progress generation (already-created journals are retained)
Cleanup	Remove journals created by a cancelled or failed generation run
Purge	Remove all generated journals for the selected scope (use before re-running)

Status Tracking

The generation tool tracks:

• Total transactions in scope
• Transactions processed
• Journals successfully created
• Transactions skipped (already have journals)
• Errors with details

Generation runs are recorded with start/end timestamps and can be reviewed in the activity log.

Caution

Journal generation for large date ranges can take significant time. The process runs in the background — you can navigate away and return to check progress. Do not close the period being processed while generation is in progress.