Journal Entries

Overview

Changing accounting systems can be a complex process. You will need to bring opening balances into a new accounting system. There are also instances where you would need to record exemptions, prepayments, or correct errors. You can do it using journals.

Accessing Journals

To access journals, click Accounting > Journal entries.
This will give you the list of existing journals. You can export the list or attach files if needed.

Creating Journals

To create a journal:
  1. Go to Accounting > Journal entries.
  2. Click Create to start a new journal. The Number field will be filled automatically.
  3. Enter the Date, and a Note which will be a brief description about what the journal is about.
  4. Click Add and fill in the necessary details:
  • Account – under this column, you enter the main account you are dealing with and enter the dimensions 1 or 2 according to whether the transaction will affect a person or a document or neither.
  • Debit – enter the debit amount. For example, you can increase a Tax invoice amount. You do not need to enter an amount here if you have already entered an amount under Credit.
  • Credit – enter the credit amount. For example, you and decrease a Tax invoice amount. You do not need to enter an amount here if you have already entered an amount under Debit.
  • Dimension 1 – this refers to the supplier, student, or customer that the journal will affect.
  • Dimension 2 – this refers to the document that the journal will affect. For example, Tax invoice.
  • Contra Account – this is the account that will be credited (if you filled in the Debit column) or debited (if you filled the in the Credit column). You can enter the dimensions if applicable.
5. Enter the remaining info if applicable.
6. Post and close.
To see the results, click General journal at the top.

Reversing Journals

To reverse a journal (bring its amounts in a negative sign):
  1. Create a new journal and enter the top information as usual.
  2. Select the Reversing checkbox.
  3. In the document field, select the document you would like to reverse. It can be any available document from the list. To select the document, click 3 dots in the corner of this field. Once you select the document, this will bring all the information about your document and bring the amounts in a negative sign, meaning that they are reversed.
  4. Click Post and close.
You can then check your General journal at the top to see the effect of this journal on the registers and accounts.
You can also check your reports to see how the journal cancelled or reversed the document.

Adjusting Journals

Whenever you would like to record adjusting transactions, you can use the adjusting journal.
For example, we want to create an adjusting journal for the closing balances for 2020.
To create an adjusting journal:
  1. Create a new journal and enter the top information as usual.
  2. Select the Adjusting checkbox. This will not change your journal screen.
  3. Enter the accounts and either their debit or credit amounts, depending on their balance. These are the only fields that need to be filled.
  • In this type of journal, you do not have to enter a contra account, but it is very important that your journal balances at the bottom. For example, if you are using a Trial Balance to enter the opening balances, the Trial Balance balances at the bottom. This should be the same with your journal.
  • You can enter as many accounts and amounts that you wish, without a contra account.
  • Remember that the total in the debit column should be equal to the total in the credit column before you post your journal.
4. Click Save and Post.
You can pull some reports and check the general journal at the top to see the effect of this adjusting journal.