The Journal Entry form enables you to create manual accounting entries for transactions that cannot be recorded through standard forms like invoices, receipts, or payments.
Journal entries provide direct access to your general ledger, allowing you to record complex transactions, adjustments, corrections, and period-end accruals.
Each journal entry must balance (debits equal credits) to maintain the integrity of your double-entry bookkeeping system.
Common uses include recording depreciation, accruals, prepayments, inter-company transactions, and year-end adjustments.
When creating a journal entry, provide a clear description explaining the purpose of the entry for audit trail purposes.
Enter debit amounts in the debit column and credit amounts in the credit column for each affected account.
You can allocate entries to specific tracking categories like customers, suppliers, or inventory items.
Always ensure your entry balances before saving—the system will prevent unbalanced entries from being recorded.
This form contains the following fields:
Enter the date when this journal entry should be recorded in your accounting records.
The date determines which accounting period the transaction belongs to and when it will appear in financial reports.
Enter a unique reference number to identify this journal entry.
References help you locate specific transactions later and can be used for audit trails or cross-referencing with source documents.
You can use automatic numbering by checking the checkbox, or enter your own reference system.
Select a Foreign Currency if this journal entry involves transactions in a currency different from your Base Currency.
This field only appears when you have created foreign currencies under Settings → Currencies.
When selected, all amounts in this journal entry will be entered in the chosen foreign currency.
Enter the Exchange rate to convert amounts between the selected foreign currency and your Base Currency.
The exchange rate determines how foreign currency amounts are converted for reporting in your base currency.
You can configure automatic exchange rate retrieval under Settings → Exchange Rates.
Enter a description that explains the purpose and context of this journal entry.
Good descriptions help you understand the transaction when reviewing it later and are essential for audit purposes.
Include relevant details such as invoice numbers, contract references, or the business reason for the entry.
Add debit and credit lines to record how this transaction affects your accounts.
Each line represents one account that is either debited or credited.
The fundamental accounting rule applies: total debits must equal total credits for the entry to balance.
If the entry is out of balance, an error message will appear showing the difference.
When using Tax Codes in this journal entry, specify whether this transaction represents a sale or purchase.
This classification determines how the transaction appears in tax reports and which tax accounts are affected.
Choose 'Sale' for revenue transactions or 'Purchase' for expense transactions.
Enable the Item column to select Inventory Items or Non-inventory Items in journal entry lines.
When an item is selected, the appropriate income or expense account is automatically populated based on the item's settings.
This is useful for recording inventory adjustments, write-offs, or other item-based transactions.
Enable the Description column to add detailed explanations for individual journal entry lines.
Line descriptions provide additional context for each debit and credit, making the entry easier to understand.
This is particularly useful for complex entries with multiple lines affecting different accounts.
Enable the Qty column to record quantities for inventory items or measurable services.
Quantities help track inventory movements and are essential for maintaining accurate stock levels.
When used with inventory items, the quantity affects your inventory on hand and cost of goods calculations.
Mark this journal entry as a cash transaction if it involves actual cash movement.
Cash transactions are distinguished from accrual entries and affect how they appear in the Cash Flow Statement.
Examples include cash sales, cash purchases, or any transaction involving immediate payment.