Journal Entries

Overview

Journal entries are manual accounting entries used to record transactions that don't fit into standard invoicing or payment processes. They follow the double-entry accounting principle.

Accessing Journal Entries

1. Click on "Accounting" in the main menu
2. Select "Journal Entries"
3. You will see a list of all journal entries

Creating a Journal Entry

Step 1: Start New Entry

1. Go to "Accounting" > "Journal Entries"
2. Click "Create New Entry"
3. You will see the journal entry form

Step 2: Enter Entry Details

• Entry Date: Date of the transaction
• Reference: Reference number or description
• Description: Detailed description of the entry
• Journal: Select the journal type (General, Sales, Purchases, etc.)

Step 3: Add Line Items

For each line item, enter:

• Account: Select the account to debit or credit
• Debit Amount: Amount to debit (if applicable)
• Credit Amount: Amount to credit (if applicable)
• Description: Description of this line item

Step 4: Verify Balance

• Total debits must equal total credits
• The system will show if the entry is balanced
• You cannot save an unbalanced entry

Step 5: Save Entry

• Review all entered information
• Click "Save Entry"
• The entry will be recorded in your general ledger

Journal Types

General Journal

Used for miscellaneous transactions that don't fit into other journals.

Sales Journal

Records sales transactions and adjustments.

Purchase Journal

Records purchase transactions and adjustments.

Cash Journal

Records cash receipts and disbursements.

Bank Journal

Records bank transactions and reconciliations.

Common Journal Entry Examples

Example 1: Recording Depreciation

• Debit: Depreciation Expense - $500
• Credit: Accumulated Depreciation - $500

Example 2: Accruing Expenses

• Debit: Expense Account - $1,000
• Credit: Accounts Payable - $1,000

Example 3: Recording Owner's Draw

• Debit: Owner's Draw - $2,000
• Credit: Cash - $2,000

Example 4: Correcting an Error

• Debit: Correct Account - $500
• Credit: Incorrect Account - $500

Editing Journal Entries

Modifying Entries

1. Go to "Accounting" > "Journal Entries"
2. Click on the entry you want to edit
3. Modify the details
4. Click "Save Changes"

Important Notes

• You can only edit entries that haven't been posted
• Posted entries cannot be edited directly
• To correct a posted entry, create a reversing entry

Posting Journal Entries

What is Posting?

Posting is the process of finalizing a journal entry and recording it in the general ledger. Once posted, an entry cannot be edited.

Posting an Entry

1. Go to "Accounting" > "Journal Entries"
2. Click on the entry
3. Click "Post Entry"
4. Confirm the posting
5. The entry will be recorded in the general ledger

Batch Posting

1. Go to "Accounting" > "Journal Entries"
2. Select multiple entries
3. Click "Post Selected"
4. Confirm the batch posting

Reversing Entries

When to Use Reversing Entries

• To correct a posted entry
• To reverse accruals
• To undo a transaction

Creating a Reversing Entry

1. Go to "Accounting" > "Journal Entries"
2. Click on the entry to reverse
3. Click "Create Reversing Entry"
4. The system will create an entry with opposite debits and credits
5. Review and post the reversing entry

Journal Entry Reports

Available Reports

• Journal Entry List
• General Ledger
• Trial Balance
• Journal Entry Audit Trail

Generating Reports

1. Go to "Accounting" > "Journal Entries"
2. Click "Reports"
3. Select the report type
4. Choose the date range
5. Click "Generate Report"

Best Practices

• Use clear, descriptive references and descriptions
• Always ensure debits equal credits
• Post entries regularly
• Use reversing entries to correct mistakes
• Keep supporting documentation
• Review entries before posting
• Use consistent account codes

Next Steps

After recording journal entries:

1. Generate financial reports
2. Reconcile bank accounts
3. Review accounting guidance