A journal is used for recording non-regular transactions, for example, the depreciation of a fixed asset or writing off a bad debt. You can also use journal entries to transfer values from one account to another.
When you create a journal entry you must follow the principles of double-entry bookkeeping. For every debit balance, there must be a corresponding credit balance. It can be made up of several credits, as long as the overall totals match.
- Go to Journals, and select New Journal.
- Complete the following information:
|Reference||Enter a reference for the journal.|
|Date||Enter the date you want to use for the journal.|
|Description||If required, enter a description for the journal.|
- Select a journal line and complete the following:
|Details||If required, enter details for the journal.|
|Ledger Account *||Select the nominal ledger account you want to use for the first line of the journal.|
|Include on VAT Return?||Choose whether you want to include this journal on your VAT Return.|
|Debit||If the journal line is for a debit value, enter the value here and leave the credit as 0.00.|
|Credit||If the journal line is for a credit value, enter the value here and leave the debit as 0.00.|
* These details are compulsory.
- Repeat the previous step for each journal entry line you want to enter.
If required, you can also perform the following tasks:
|Insert a new row above an existing journal entry line||To do this, hover over the icon that appears next to the relevant journal line then click the Insert row above button. When the blank entry line appears, enter the relevant journal information.|
|Create a copy of a journal entry line||To do this, hover over the icon that appears next to the relevant journal line, then click the Copy row button. When the duplicate entry line appears, edit the journal information as required.|
|Delete a journal entry line||To do this, hover over the icon that appears next to the relevant journal line you want to delete, then select the Remove row button.|
- To rearrange the order of your journal entry lines, hover over the icon that appears next to the journal line you want to move, then drag and drop the journal line into the required position. Repeat this step for any other journal lines you want to move until you’re happy with the ordering.
- If you want to attach a file, for example, a copy of a receipt, select the Attachment button then select Upload files. Then find and select the relevant file.
- Check the total value of credits and debits balance, then select Save.