A Journal Entry allows you to debit or credit each of an arbitrary selection of accounts for any amount; the only limitation is that the total of debits and credits must be equal.
Preparing a Journal Entry
Each line in the spreadsheet represents a debit or credit to one account. Therefore, the simplest journal entry must contain at least two lines: one debit and one credit. You can change any part of the spreadsheet before posting.
Choosing Accounts
You can just type an account number into the Acct column, or you can double-click the Acct or Description columns to pop up a list of accounts to choose from. If you type in an invalid number, the list will automatically pop up. Note that you cannot type in the Description column; it is filled in automatically when you enter an account.
Entering Amounts
You may enter EITHER a debit or credit amount on each line, but not both. If you need to enter both a debit and a credit to the same account, you must add another line. Once you have entered an amount in either the debit or credit columns, you cannot type in the other column. If you enter an amount in the wrong column, you must zero it out before you can type in the other column.
Memo
Type a reason for or explanation of the transaction here. This is especially important for journal entries. Memos also help tie the relationships between the journal entry sets.
Journal Entry Date
The date that you enter here will be associated with all of the lines of the journal entry.
My Check #
In some cases, you may wish to include a check number in a journal entry. For example, you can record a bank transfer that you have made by check with a journal entry instead of using a transfer account.
Vendor Select
In some cases, you may wish to associate a vendor with a journal entry. For example, you can record a bank transfer by check drawn on a particular bank.
Posting
Once your Debits and Credits match, you can click Post to add the journal entry.
Debits and Credits These are technical accounting terms and may not always mean what you think! The effect of a debit or credit depends on the type of account that you apply it to. The following types of account are increased by a debit and decreased by a credit:
The following types of account are increased by a credit and decreased by a debit:
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Note: Correcting and Deleting Journal Entries can only be done with Admin Rights. If you delete or modify a journal entry, do so with caution as these changes can affect your Balance Sheet overall.