Overview

A Journal Entry is an essential tool used to record business transactions in the accounting records. Typically, journal entries are recorded in the general ledger, which is then used to generate financial statements for the business. Journal entries can also be recorded in subsidiary ledgers, which are summarized and rolled forward into the general ledger.

Steps to Create a Journal Entry

1. Navigate to Journal Entry Form:

   • Go to Financial Statement > General Ledger > New > Journal Entry.
   • A new Journal Entry form will appear on the screen.

2. Input Key Dates:

   • Journal Date: Select the date when the journal entry is being recorded.
   • Document Date: Select the date of the document related to the transaction.

3. Reference Number:

   • The Reference Number is generated automatically based on the journal and document dates.
   • You can manually input the Reference Number if needed.

4. Currency and Event Date:

   • Currency: Select the currency in which the transaction is being recorded (e.g., INR - Indian Rupee).
   • Event Date: Choose the date when the event or transaction occurred.
   • If dealing with multiple currencies, toggle the "Multi-Currency" option.

5. Source Reference:

   • Enter any relevant source reference details associated with the transaction.

6. Adding GL Rows:

   • Account Description: Select the GL account related to the transaction (e.g., Accounts Receivable).
   • Counterparty: If the selected account is related to customers (e.g., Accounts Receivable), a dropdown will allow you to select the customer and their branch. Similarly, if the account is related to suppliers (e.g., Accounts Payable), you can select the supplier from the dropdown.
   • Branch and Department: Specify the branch and department if applicable.
   • Tax Type: Choose the relevant tax type from the dropdown.
   • Debit and Credit: Input the debit and credit amounts for the transaction.
   • Memo: Add any relevant notes or descriptions in the memo field.

7. Adding and Finalizing Entries:

   • Click the Add Field button to add more rows for additional entries.
   • You can continue adding multiple entries as required.
   • Review all entries for accuracy.

8. Processing the Journal Entry:

   • Click Submit to process the journal entry.
   • Alternatively, you can save the entry as a draft by clicking the Draft button.
   • Use the Quick Entry feature for creating entries based on future needs, simplifying the process of recording future transactions.

Quick Tips:

• Counterparty Selection: When using accounts like Receivables or Payables, selecting the correct counterparty (customer or supplier) is crucial for accurate tracking.
• Memo Field: Always fill in the memo field with clear and concise information to ensure that the purpose of the transaction is well-documented.