An accounting journal entry is the record of a financial transaction entered into an organization’s accounting system. Each journal entry documents the accounts affected by the transaction and records the corresponding debits and credits, ensuring the accounting records remain balanced.
Purpose of an Accounting Journal Entry
The primary purpose of an accounting journal entry is to:
- Accurately record financial transactions as they occur.
- Maintain a complete and chronological audit trail of all financial activity.
- Ensure debits and credits are balanced in accordance with double-entry accounting principles.
- Support the preparation of accurate financial statements and reports.
- Provide documentation for auditing, reconciliation, and financial review.
Journal entries are commonly used to record adjustments, corrections, accruals, depreciation, transfers between accounts, and other transactions that may not be created automatically through routine system processes.
To access the Journal Entry:
- Select the left menu
- Select Account Receivable
- Select Journal Entry
Information to enter:
- Date
- Reference Date
- Reference (note to display on statement)
- Total (will be displayed as per fee line items entered below)
- In the Lines table:
- Click the “+”
- Select the Account for the debit
- Click the checkmark to apply
- Click the “+”
- Select the Account for the credit
- Click the checkmark to apply
- review the information for accuracy
- Click the POST icon to complete
NOTE: Journal Entries can only be processed with posting GL accounts. Should the account be a non-posting (example: 11000 Accounts Receivable), please use manual invoices and manual credits to make adjustments.