What is a journal entry, and when do I need one?

Created by Andrew Marcus, Modified on Mon, 3 Aug at 3:11 PM by Andrew Marcus

A journal entry records a transaction directly in the ledger when no document fits. Most of the time you do not need one, because invoices, bills, receipts and payments post their own entries.

Use a journal for accruals, prepayments, depreciation, corrections agreed with your accountant, and opening balances when you start.

Every journal must balance. Total debits must equal total credits before it can be posted.

Journals appear in the ledger like any other transaction and in your reports from their entry date. Date them in the period they belong to rather than the date you typed them.

Try it in the live demo: Open journals

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