Journal Entries

Follow

Journal entries are used for any transaction that is not a physical check or deposit. This would include electronic fund transfers, online payments, bank fees, and occasionally corrections or fixing of errors.

As we know by now, the Finance module is based on a dual entry method of accounting. This means that every journal entry affects at least two accounts and possibly more.

At least one of the accounts is debited while one other account has to be credited. For the journal entry to be valid, the total debits must match the total credits. The chart below shows you which Accounts to debit and credit to increase or decrease an account balance.

Account Type  Increases Balance Decreases Balance
1—Asset Debit Credit
2—Liability Credit Debit
3—Equity Credit Debit
5—Income Credit Debit
6—Expense Debit Credit
7—Dedicated Credit Debit

Journal entries always have one of the following statuses:

» Blank—The journal entry is active but has not yet been cleared.

» Cleared—The journal entry has been cleared using the Bank Reconciliation utility. This asserts that the transaction has been processed through the bank and appeared on a bank statement.

» Void—The journal entry has been voided, and all of its line items have been reversed, setting the journal to $0.00.

» Rev Chk—The journal entry was created when a check was stopped. A Rev Chk journal entry cannot be edited.

Existing journal entries that do not have a status of “Void” or “Cleared” can be edited any time within the fiscal year.

Note: Keep in mind that each Fund has its own set of transactions. Therefore, if you don’t see the journal entries you thought you would, make sure you are on the right fund.

  1. Journal entries can be added, edited, and deleted within the Journal Entries Register. 
  2. You can access this register by selecting “Journals” under “Transactions” in the menu bar or by clicking the “J” button in the toolbar.
  3. In this grid you will see a list of your journal entries, including the date they were made, the amount they were for, and the status they currently have.
  4. To add a journal entry from the Journal Entry Register, click the Add button.
  5. The number and the date will automatically be filled in; override if necessary.
  6. Use the memo line to describe the JE.
  7. If this JE is an electronic fund transfer (EFT) and you wish to attach this JE to a vendor, check the box and select the vendor from the drop-down menu.
  8. Under the Account #, select the first account. After the account is entered, fill in the debit/credit amount. Add a line item description if desired.
  9. Fill in any remaining accounts and their respected debit/credit amounts.
  10. Remember that a valid journal entry must have both debits and credits and those two have to balance.
  11. When you are finished, click OK to save it or click “Add Again” to add another.

 

5.08.01.1_-_Journal_Entries.png

 

5.08.01.2_-_Journal_Entries.png

1 out of 1 found this helpful

Comments

0 comments

Please sign in to leave a comment.