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Record A Journal Entry In QuickBooks

Simple tips to Record Journal Entries in QuickBooks

Accounting transactions can get entered incorrectly into an accounting system, or simply a transaction need to have been split up into two different general ledger accounts, for example.

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In either case, when this occurs you have to make modifications to your original transaction after this has been recorded, and you can do that easily in QuickBooks accounting software by making a journal entry.

You can make journal entries in QuickBooks to modify or correct transactions and post entries that simply cannot be performed various other ways, such as adjustments to loss or profit.

The journal entry process is fairly straightforward, you could only make a journal entry for example customer or vendor at any given time. If you wish to correct multiple customer or vendor balances in this way, you need to post separate entries.


What exactly is a Journal Entry?

A general journal entry is an accounting transaction that is entered, or posted, right to the general ledger. A business's general ledger will act as its main selection of accounts used to record balance sheet and income statement transactions.

For instance, you have entered the monthly $100 utility bill to your company's insurance expense account by accident. You can post an adjusting journal entry to reduce, or credit the insurance expense account by $100 while increasing, or debit the utility expense account by $100 to correct your mistake. Your entire accounts would then be in proper order, and you would not need to change the balance due by your vendor for the reason that it portion of the transaction was recorded properly.

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Journal Entries for Year-End Activities

Your certified public accountant or bookkeeper might want to make journal entries to complete year-end activities, such as posting tax adjustments to your books, recording depreciation expense or reclassifying revenues and expenses. Your accounting professional can provide you with specific information if you wish to post the journal entries yourself at year's end, along side explanations for why the entries were needed for your particular situation.


How to Make General Journal Entries in QuickBooks

You possibly can make general journal entries in QuickBooks by following these step-by-step instructions:

  • Go to Company > Make General Journal Entries through the menu near the top of the screen.
  • Replace the Date field, if necessary, into the Make General Journal Entries window. QuickBooks will default towards the current date when you like to post an entry for a previous month or year, make sure to change it out so your entry gets recorded in the proper financial period of time.
  • Enter a number for the journal entry in the Entry No. field. QuickBooks will automatically number subsequent journal entries sequentially.
  • Go into the general ledger account number into the Account column. You are able to select the first account from a drop-down menu when you look at the Account column.
  • Enter the debit or credit amount for the account you've selected into the Debit or Credit columns. The debits and credits needs to be add up to make the entry balanced and invite QuickBooks to publish the entry.
  • Enter a descriptive memo in the Memo Column. It should be displayed on reports such as this journal entry. This task is optional, however it's recommended so that you'll remember later why the entry was made.  
  • Repeat Steps 4 through 6 until the entries completely offset each other additionally the transaction reaches a zero balance. Your total in the Debit column should equal the sum total in the Credit column, while the journal entry will likely then be properly balanced. 
  • Click Save & Close to save the journal entry and close the window, or click Save & New to save the journal entry and open a fresh window.

You can make most general journal entries in QuickBooks making use of these steps, however if you wish to make journal entries that affect a particular customer’s account receivable or a vendor’s accounts payable, you will need to place the customer or vendor on the first line of the entry. 

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