How to Make a Quickbooks Journal Entry

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Many Companies used Quickbooks software to manage their financial statements. Many people prefer to use Online versions of Quickbooks. You can easily correct your mistakes which you have made while reporting for the transactions by simply creating a journal for the transactions.In Online version it stores all the information in the form of journal.In this article we are going to talk about how you can make a Quickbooks Journal Entry.

What is Journal Entry

The transactions that are entered in the general ledger are Journals. This keeps a track of all the transactions you make, whether it is credit entry or debit entry. It is necessary to mention both the debits and credits in the general ledger. To keep the account statement correct you have to make sure the amount debited is equal to the amount credited. Whenever you make a transaction, it is required to enter it into the general ledger.

Read the below points carefully when you enter a transaction into the general ledger.

Send money between the expense account and income accounts.
Transfer money from any asset or any equity account to the expense account.
General debits and credits made with the account.

Rules for Quickbooks Journal Entry

You need to follow the below rules before making a Quickbooks journal entry

If you are using a paying account, enter the details of customers or vendors.
The next rule is to never make a journal entry to a payroll account.
Make sure to include one account payable or receivable type account in every entry.
Next, enter the paying and receiving account in the next line.

Points to Remember to Make a Journal Entry in Quickbooks

If you are creating a journal entry, you need to remember a few things which are given below.
It is required to create a separate journal entry for every currency as Quickbooks Online doesn’t support multi-currency in one journal entry.
If you are using Quickbooks Online Plus, you can view the additional column for location and class.
If you have created an entry by mistake and you need to correct the transaction then you can delete the journal entry to rectify your mistake.

Steps to Make Quickbooks Journal Entry in Quickbooks Online

If you want to know how to make a journal entry in Quickbooks, you can follow the steps mentioned below.

Go to the Journal Entry

Go to the journal entry option provided by Quickbooks. Now select the option to create journal entry in the plus icon present on the right-hand side of the screen. Click on that option and you will be moved to the next page. Now fill the required information to create a journal entry. Now edit the date of the journal if you are creating a journal on the previous date or a forward date. Quickbooks takes the current date as default. You can edit the number of the journal.

Fill Up the Details

The first information you need to enter is the accounts. You will have to enter the accounts you have mentioned in the chart of accounts
Now fill in the journal code. You need to keep in mind the same journal code to make the transactions.
After that enter the credit and debit information.
Enter the details of vendors, employees, and your customers.
Enter the description of the journal so that you can refer later.
Select an option for recurring journals in Quickbooks and save the transaction.

Conclusion

Journal entry is used to keep track of all the transactions made by the user. It is a very unique feature provided by Quickbooks to manage your accounts. We have mentioned all the steps to create a journal entry and all the points to remember to make a journal entry. You can also visit our previous article on Quickbooks has stopped working. If you are still facing any issues while making a journal entry, you can contact us. Our experts will provide you the best solution.