Journal Entries allow you to manually manipulate account balances outside of normal transactions such as entering Vendor Bills or recording Cash Receipts. Every Journal Entry must affect at least two accounts to keep your General Ledger Accounts in balance. In addition, Journal Entries must have the same total credit amounts as debt amounts, for example: if we are trying to credit the balance of one account we must debt the balance of another account or accounts by the same amount. Before adding our Journal Entry, know what two accounts you'll be creating with the Journal Entry. It is important to know that Journal Entries do not have any bearing on a particular Project, Vendor, or Client. The reports to look at when creating and posting Journal Entries are the Trial Balance Report, Account Inquiry, and Income Statements. If you find yourself making excessive amounts of Journal Entries or you're not confident in making Journal Entries at all, contact Support for advice and help. Here are some circumstances that are appropriate for using Journal Entries:
Making closing entries given to you by your accountant
Making payroll entries when you use a payroll service
Adjust Items in the wrong month
Accruing COGS (Cost of Goods Sold) or Items purchased after invoicing to the Client
Service charges, discounts, rounding remainders (for example, sales tax)
1. On the left side menu, under General Ledger, click on Journal Entries.
2. Click on the +Add button in the upper right hand side.
3. In the new window, you can edit the pre-populated Entry No. listed and the date field. It is strongly recommended to enter a description for your Journal Entry next to Description.
4. To add your first account, click on the +add button.
Select the Account
Select credit or debit
Enter the amount
When finished entering the information for the first account, click on +Save & New.
5. Add in the information for your second account:
Select the Account
Select credit or debit
Enter the amount
When finished entering the information for the second account, click on +Save. If you have more accounts to debit, you can click on +Save & New.
6. On the Add Journal Entry window, check over the information entered for accuracy. Click on Save to add the Journal Entry.
7. You'll see the Journal Entry listed under New in the Journal Entry window. The entry has not been recorded yet and needs to be posted to be recorded. Review the information for accuracy and if needed make changes by clicking on the Tx Ref No. When ready to post, click on Actions in top right and select Post. On the new window, select the fiscal month to post the entry to and click on Ok.
8. The Journal Entry is now listed under the Existing tab for Journal Entries.