A quick guide create/record journal entries in QuickBooks Desktop:
Entering accounting transactions incorrectly into the accounting system is one of the common blunders made by the QuickBooks users. When this kind of situation arises, the user needs to make changes to the transaction even after it is recorded. The user can simply perform this by creating a journal entry. In order to adjust or correct transactions and post entries, the user can easily make journal entries in QuickBooks. Creating journal entries is simple process with a couple of steps. The journal entry process is simple as we said earlier, but you can only make a journal entry for one customer or vendor at a time. In case you want to correct multiple customer or vendor balances, separate entries are to be posted.
Scroll through the post to learn the entire process properly. Moreover, if you feel the need of technical assistance at any point of time, then do not think much in giving us a call at our helpline number i.e. 1-800-761-1787, as our QuickBooks desktop support team will be there to assist you round the clock. You will get the most relevant answers to all your journal entry in QuickBooks related queries, so get in touch with us today.
You might also see: Move your QuickBooks Desktop file to QuickBooks Online
What is a journal entry in QuickBooks?
Talking about a general journal entry, it is an accounting transaction entered, or posted, directly to the general ledger. A company’s general ledger basically acts as its main group of accounts which is used to record the balance sheet and income statement transactions. In simple words, it is a record of transactions that show the credit and debit balance of the company. Journal entry is regarded to be a very important and essential part of business accounting. Thus, it is important for the user to learn all possible facts related to journal entries, which we will be discussing later in this post. So, read ahead and explorer further!
Pointers you can’t miss while creating the journal entry in QuickBooks
- It should be noted that the QuickBooks online doesn’t support multi-currency in a single journal entry. This means that each and every currency has its own journal entry.
- If in case the user creates an entry and wishes to rectify the transaction, then it can be done by deleting and reversing the journal entry.
- The user needs to view the additional column for the location and class if the user is making use of QB online plus.
- To reflect on sales or expense tab, the user is required to ensure that entry has a line for either A/R or A/P and also the vendor or customer name
Other important rules to make journal entries
- The user is recommended not to make journal entries to inventory or payroll accounts
- Also, the entry to the accounts payable type or the accounts receivable will require a customer or vendor
- Moreover, it is important for the user to us the accounts receivable or accounts payable account on the second line of the journal entry
- Along with that, the user should include one account receivable or accounts payable type account every entry
When to use Journal Entry in QuickBooks online?
The user is recommended to make use of the journal entry in QuickBooks online when:
- At the time of sending the money between income and expense accounts
- Also, when transferring money from an asset, liability, or an equity account to the income or the expense account
- In case when the user needs to enter the debits and credits in general journal or the ledger
See this also: How to set up a Chart of Accounts in QuickBooks?
Steps to creating journal entries in QuickBooks
Checkout the following steps in order to record journal entries in QuickBooks Desktop:
Step 1: Navigate to the Journal entry feature
- The user is first required to move to the journal entry feature
- And then click on the plus icon at the top right of the file.
- This will show up a drop-down menu as Create, which will have the Journal Entry option
- After clicking the option, the user will be redirected to the window having the blanks for necessary information
Step 2: Entering date and journal number
It should be noted that the journal entry form in QuickBooks online is not at all complicated.
- After the form opens up on the screen, the user is supposed to edit the journal date, whereas the current date will be automatically entered by QuickBooks.
- However, if you are recording any entry from any other date, then ensure to correct the date before moving ahead.
- Once the date is corrected, the user is supposed to fill in the journal number
- Or otherwise the QuickBooks software will automatically enter the sequential number
Step 3: Entering the need information
- Accounts: It means the accounts in the chart of accounts
- Journal code: The journal code related to the account is the next thing the user is supposed to enter. It is very much important to enter the new journal code. Make sure that you use the same journal code, which is related to the transaction for the debit and credit accounts.
- Debit and credits: The user is supposed to look for the transactions in the recent transaction report, and also make a note that the first in line is debits. Another thing is to check out if the debit has changed after the transaction is saved.
- Description: Entering a description to check the transaction details on the report is another important step
- Name: Now, the user needs to choose the customer, employee, or vendor
If the total of the debit column doesn’t match the sum of credit column, then it is important to fill in the distribution lined until the total of the both tallies.
You may read also: How to set up QuickBooks Desktop to work from home?
Step 4: Selecting to make recurring journal entry schedule
The user is not required to select the recurring journal entry schedule and then finish the process by saving the transaction.
Editing a journal entry
Now that you know the process to add and create a journal entry, it is time to learn the process to edit a journal entry in QuickBooks. The steps involved in this process are as follows:
- The user needs to first visit the company menu and then choose the make general journal entries option
- After that, choose the find option and then enter the name, date, entry no, or amount then click on find
- The next step is to double click the journal entry and then make the updates. Once done, choose save and close
- Lastly, in order to record changes, hit Yes option.
Deleting a journal entry
In case the user is required to delete or void a journal entry, the below steps need to be carried out.
- The user is supposed to first visit the company menu and then choose the make general journal entries
- After that choose the find option and then enter the name, date, entry no., and other required info. And then choose to find.
- The next step is to double click the journal entry and then, choose the delete or void option and hit OK button
- To end the process, choose save and close.
Reverse a Journal Entry
The user can reverse a journal entry by performing the below steps:
- At first, the user needs to move to the company menu and then choose the make general journal entries
- And also, look for and select the journal entry that is to be reversed
- In QuickBooks for Windows, the user is supposed to choose find and then enter the name, date, entry no. or amount and then choose find tab
- In QuickBooks for Mac, the user will have to look for and choose the journal entry that is to be reversed on the lefty side of the Make general journal entries window
- Now, the user needs to choose reverse
- Followed by selecting save or save & close tab
The reversed journal entry has an R next to the entry number and any debit and credit amounts reversed. The new entry is dated the first day of the next month, following the original transaction date.
Read Also: QuickBooks Compatibility with Windows 10
We believe that making journal entries in QuickBooks desktop becomes easy with the steps scribbled above. Moreover, if you wish to make journal entries that affect a particular customer’s account receivable or a vendor’s accounts payable, then for that you require to put the customer or the vendor on the first line of the entry. We have tried our best to provide the steps to create journal entries in QuickBooks.
However, if you feel the need of expert assistance, then contact our QuickBooks enterprise customer support team anytime at 1-800-761-1787. We ensure immediate assistance and customized support services to all our clients across the globe.
More Interesting Reads: