How do Journals work within Journal Entry?

article ID: 1005610 

 

Journal Entry requires that you understand essential principles for double-entry bookkeeping. In this article we explain how you input journals using Journal Entry. We also give some tips on effective use of the module.

--------------------------------------------------------------------------------

 

 

How to record a journal using Journal Entry:


1. Start Journal Entry (View - Accounting - Journal Entry).

2. Chose the correct journal type by moving between the different options using the [/]-key and the [*]-key on the number pad, or by directly choosing the correct type from the drop-down list.

3. Once selected, you should ensure that the correct Period and Year are chosen. NOTE: The journals are automatically entered into the correct period and accounting year depending on the date entered into this screen but the period and year can, of course, be over-ridden if desired.

4. Enter the accounts for debiting and crediting. If you are uncertain of which account number you should use, press the [-]-key on the number pad and the Account Plan will be presented. All Nominal Code accounts can be found under the tab N/C. The Customer and Supplier tabs can be used to present a list of their respective contacts. This is important for entries made into the Customer and Supplier Ledgers.

5. If, for example, 1100 (Debtors Control Account) is entered in the N/C field, the Account Plan will display the list of customers and you can choose the appropriate customer from this list. In the same way, if account 2100 (Creditors Control Account) is entered the system will present a list of suppliers.

6. When you post to the fields Debit and Credit, you will be able to review the balance between the summary totals at the bottom of the window. You cannot transfer the journals to the General Ledger before each one is balanced.

7. The two fields at the bottom right of the window are total-summaries of the Debit-postings and Credit-postings respectively. The field to the left of these is a review of the difference between them. You cannot transfer the journals to the General Ledger before the test Debit – Credit = Zero (0) is satisfied.