Journal entries record accounting transactions of a business. The terminology refers to the days of hand-written accounting records, when daily transactions were were entered in a journal and later posted to individual account ledgers.
In Manager, most transactions are entered in other functional tabs, thereby automating many decisions about account posting and reducing errors. So journal entries are relatively few; most record transfers between accounts. In fact, no transaction involving the actual receipt or payment of funds by a business can be recorded via a journal entry.
The Journal Entries tab is always enabled for every business. To make a journal entry, go to that tab and click New Journal Entry:
Complete the entry:
Dateis prefilled with today’s date, but can be edited.
Referenceis added automatically when the journal entry is created. Manager finds the highest existing
Referenceand adds 1. The number can be edited and can include alphanumeric input.
Narrationshould be a brief description of the overall transaction being entered.
The journal entry form initially opens with fields for two line items, and every journal entry must include lines for at least two accounts. More can be entered, as long as the sum of all debits equals the sum of all credits. For each line:
Accountindicates which account the line will post to. If necessary, subaccount fields appear and must be completed.
Descriptionaccepts information about the individual line item.
Debitcolumn and credit amounts under
Tracking Codesif applicable. Frequently they are not for journal entries. (These fields do not appear unless tax codes and tracking codes have been defined under Settings.
Notesaccepts detailed information about the transaction.
Click Add line if more lines are needed. In the illustration above, a line has been added for a second
Credit amount, because the overall distribution included two elements.
Because debits and credits must balance for all journal entries, Manager calculates the difference between their sums as inputs are made. The difference shows in red to the right of the totals. A red zero indicates a balanced transaction:
Order of lines can be changed by dragging the arrow symbols to their left. Lines can be deleted by clicking X to their right.
Click Create to save the entry.