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Creating a new journal entry
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Journal entries are typically recorded to make changes in the system in order to reclassify items, correct errors, or record adjusting transactions. Journal entries are the primary document used by accountants to make adjustments at the end of the month or year.
Journal Entry
Step-by-step instructions
Use the following steps to create a journal entry:
- On the Company menu, click New Journal Entry.
- If necessary, change the journal entry number.
- Type a memo to describe this journal entry (optional).
- Pick a date for the first line on the journal entry. The default date is today.
- Click the drop-down list in the Type column and select the appropriate option. Depending on what option is chosen, different records will displayed in the Account column.
- Financial Account – The chart of accounts is available in the Account field.
- Vendor – The vendor list is available in the Account field and the Accounts Payable account will be updated.
- Customer – The customer list is available in the Account field and the Accounts Receivable account will be updated.
- Tax Code – The list of tax codes will be available in the Account field and the Taxes Payable account will be updated.
- Select the appropriate account, vendor, customer, or tax code in the Account column.
- Enter an amount in the Debit column if this is a debit entry or enter an amount in the Credit column if this is a credit entry.
- Repeat steps 5 through 7 until the Balance field display $0.00. This means that debits and credits equal each other and the journal entry is in balance.
- Repeat steps 4 through 8 for the next transaction on the journal entry.
- Click Save and Close.
Journal Entry Tips
- When entering general journal entries, it is a good idea to use a consistent format. Many bookkeepers enter the debits first, and then the credits. This makes for a more readable presentation.
- The journal entry memo should convey the reason or purpose of the journal entry as this shows up in the memo line of the account register.
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