There can be some situations when you process a transaction but that incorrect. In such situations, you have to make some changes in the original transaction once it gets recorded. This can easily be done because you just need to record a journal entry in QuickBooks and it is considered as an easy process in accounting terms.
With QuickBooks, you can record journal entries to adjust or make changes in the incorrect transactions and post entries that is not possible with other ways. This article will provide you a complete information about how to record a journal entry in QuickBooks. In case of any complexity or if you face any kind of issue during the process then you can contact us at our toll-free QuickBooks Payroll Support Phone Number +1888-557-5018.
What Is A Journal Entry?
A journal entry basically is a transaction entered or posted by you in the general ledger. The general ledger of a company is the main group of accounts which is being used for recording sheet and income statement transactions.
The journal entries in QuickBooks can be used to perform the following tasks:
- It helps you to use debits and credits in a general journal or ledger to provide transactions as a traditional system of accounting.
- Journal entries in QuickBooks allows you to transfer amount from on income or expense account to another.
- With Journal Entries, you can transfer amounts from an asset, liability, or equity account to an income or expense account.
- You can transfer amounts from one class to another.
- You can enter miscellaneous transactions to finish year-end activities.
How To Create Journal Entry In QuickBooks
You should know about the account that receives the debit and credit side of transaction when you create journal. Intuit highly recommends you to contact your accounting advisor or QuickBooks Support to assist you while creating journal entries.
- Open QuickBooks and from the main menu, go to Company > Make General Journal Entries
- From the Make General Journal Entries window, change the Date if you want.
- You will get the Entry No. If you don’t get any number then you need to enter a number for your journal entries and the number will get sorted by QuickBooks automatically.
- Enter the General Journal Entry details.
- Choose or enter the first account in your transaction. The very first account in General Journal transactions will be the AR or AP account. If not then it might be possible that you are using an A/R or A/P account.
- Provide the debit or credit amount for your selected account.
- You can also turn the amount billable to the customer by putting a checkmark on the Billable column if you have selected an Expense account with a customer job.
- (Optional) Create a memo which describes the transaction. You will be shown the reports and it will contain the General Journal entry.
- Select or provide the Customer, Vendor, Employee, or Other name regarding transaction. Doing this is important for those who use A/R or A/P accounts.
- Set a class for the amount if you want.
- Perform all the above steps for entering the distribution lines until the transaction shows up a zero balance. The sum in Debit section should be equal to the sum of Credit
- Select Save & Close to save journal entry. You can also click on Save & New if you want to save the journal entry and create a new one.
- To get the journal entry details in the Vendor or Customer Center, then you should mention the customer or vendor on the first section of the journal entry. However, multiple customers or vendors’ reports can be displayed on a single journal entry.
- You will receive some additional functions in the Make General Journal Entries window and that depends on the QuickBooks version 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 steps provided in this article will surely be helpful for you in recording a journal entry in QuickBooks Desktop. Majority of general journal entries can easily be created by the steps mentioned above. If you wish to make a journal entry that can have an impact on a specific customer’s account receivable or vendor’s account payable then you should enter the customer or vendor on the first line of entry.
If you are facing any kind of issue during the process of creating or recording a journal entry in QuickBooks then you can contact us at our toll-free Intuit QuickBooks Support Phone Number +1888-557-5018 to get an instant solution for all your QB errors and issues.