Sometimes the accounting transactions done by you may get incorrect. If it has happened with you also then you need to make changes to the actual transaction after it gets recorded. You can do it easily as you need to record a journal entry in QuickBooks which is not a very complex process.
QuickBooks allows you to record journal entries to adjust or modify the incorrect transactions and post entries which can’t be done by any other process. This article will help you to record a journal entry in QuickBooks easily. You can also contact us at our Intuit QuickBooks Support to get more information about the journal entries in QuickBooks.
What Is A Journal Entry?
Basically, a journal entry is an accounting transaction entered or posted into the general ledger. The general ledger of a company is the main group of accounts that is used to record sheet and income statement transactions.
You can use the journal entries in QuickBooks for the following tasks:
- Using debits and credits in a general journal or ledger to enter transactions in the traditional system of accounting.
- Transfer amounts from one income or expense account to another.
- Transfer amounts from an asset, liability, or equity account to an income or expense account.
- Transfer amounts from one class to another.
- Enter miscellaneous transactions to complete year-end activities.
How To Create Journal Entry In QuickBooks
You must have the knowledge of the account which is receiving the debit and the credit side of transaction while creating journal entries. It is highly recommended to contact your accountant or the QuickBooks Support for guidance before making journal entries.
- Open QuickBooks and from the main menu, go to Company > Make General Journal Entries
- Under the Make General Journal Entries window, you can change the Date field if you want.
- Entry No. will get created automatically. If not then enter a number for your journal entries. The number will automatically gets sorted by the QuickBooks desktop.
- Provide the General Journal Entry details.
- Enter or select the initial account in your transaction. The first account in the General Journal transaction should be the AR or AP account in case if you are using an A/R (accounts receivable) or A/P (accounts payable) account,
- Enter the debit or credit amount for the account you selected in the previous step.
- You can enter a memo that describes the transaction if you want. The memo will be displayed on reports and will include the General Journal entry.
- Enter or choose the Customer, Vendor, Employee, or Other name related to the transaction. This is important if you are using A/R or A/P accounts.
- You can also make the amount billable to the customer by checking the Billable column in case you selected an Expense account along with a customer or job.
- Assign a class to the amount if you want.
- Repeat all the previous steps in order to enter distribution lines until the transaction reaches a zero balance. The total in the Debit column should be equal to the total in the Credit
- Click on Save & Close for saving the journal entry and close the window or you can click on Save & New for saving the journal entry and create a new one.
- If you want the journal entry details to get displayed under the Vendor or Customer Center, then you have to mention the customer or vendor on the first line of the journal entry. You can’t display multiple customers or vendors’ reports on a single journal entry.
- You will get additional functions under the Make General Journal Entries window and it’ll be according to the version of QuickBooks that you are using.
- Premier: Debit and Credit Totals
- Enterprise and Accountant: Debit and Credit Totals and List of Selected Journal Entries
Reach Us For Support
The provided steps and procedures will allow you to record a journal entry in QuickBooks Desktop. Most of the general journal entries can be created by following these steps. However, you want to create the journal entries that affect a specific customer’s account receivable or vendor’s accounts payable then you need to put the customer or vendor on the first line of the entry.
However, if you are facing any kind of issue while creating a journal entry then you can get in touch with us at our QuickBooks Support Phone Number +1800-567-0425 and then help from the certified ProAdvisors of QuickBooks.