Journal entries are a critical part of accounting used to record financial transactions, adjust account balances, and create a chronological record of a company’s financial activities. They are necessary to produce accurate financial statements, including balance sheets and income statements, which provide insight into a company’s financial health. Journal entries include details such as the date, affected accounts, amounts, and a brief description of the transaction and must be precise and comprehensive for reliable financial records.
Each Journal Entry must have a minimum of two Journal Entry Lines associated with it and must have balancing debits and credits to save. If your debits and credits do not balance, the Out of Balance field will display the difference. You will still be allowed to create the Journal Entry in the draft.
- Navigate to Accounting Home and then to create entries and click Journal entries.
- Click new will pop up below screen.
Journal Date: The date of the journal entry. This will automatically find the accounting period from this date and log the transaction in that accounting period.
Journal Entry Lines:
Account: If the GL Account selected is the AR GL Account or the AP GL Account, then an Account (Customer/Vendor) must be specified on the Journal Entry Line.
GL Account: General Ledger Account for which you are creating the Journal entry
Debit or Credit Amount: Each Journal Entry Line will consist of either a Debit or Credit, but not both.
Date: It’s the optional field, in case you want to segregate the line posting in a different accounting period than the main journal entry.
Description: Optional field to enter any description about that line item.
NOTE: This screen is all admin customizable, please add your case management fields in this screen as needed like Matter or Timekeepers etc..
Buttons
- Edit
This action allows you to modify the contents of an existing journal entry record.
- Edit w/ Lines
Allows modifications to a journal entry record while preserving the original content by adding a new line with updated information and marking the old line as “revised” or “corrected.
- Clone journal Entry
A new journal entry record that is an exact copy of an existing entry.
- Reverse Clone w/ Lines
A new journal entry record that is the reverse of an existing entry, with opposite debits and credits. The original entry is preserved as a reference.
- Delete
Permanently removes a journal entry record from the system. This action should be used with caution, as it may affect the accuracy of financial records.
