Quickbooks Inherit various Useful features that helps you to keep track of your business cash flow. One such feature is the Journal Entry in Quickbooks Online. As per accounting terms, a Debit entry and a Credit entry are two aspects of Quickbooks Journal Entry. the Quickbooks Online version will store these journal entries in the Register/ Account History As transactions. According to the rules defined by accounting in business, the sum of the debit column is equal to the credit column. if required you can use these journal entries in Quickbooks Online.
- Transfer the money between your Income and expense account.
- make a transfer between your income or expense account to the liability, Asset, or equity account.
- If you are required to feed transactions into a journal or ledger in general.
We have explained below how you can create a journal entry in Quickbooks online along with its specific features. However, if you are looking to get Quickbooks Online but you are confused between the available version of Quickbooks software then you can have a look at how to choose the best version of Quickbooks Online according to your accounting needs. here you will get a complete comparison based on the features and pricing of all the three versions to make it easier for you to choose the best accounting software based on your needs.
A Brief Introduction of Quickbooks Journal Entry
In simple words, we can state that a general Journal Entry is the list of the accounting transactions that are feeded to the companies general Ledger. the Journal Entries feature in the Quickbooks Desktop Allow users to make changes into the transaction in post entries.
the process to enter journal entry is quite simple however, at one time you can make only one entry. If you want to make multiple changes then you will be needed to create separate entries.
Quickbooks Online Journal Entry Rules
In most of the cases in the Quickbooks Online, the journal entries are created for tax provision, depreciation entries, or Loan Interest adjustments. however, you need to follow certain rules while creating journal entry in Quickbooks Online that are mentioned below:
- It is mandatory to feed account receivable or account payable type account in every entry.
- In the second line of the journal entry using the account payable or account receivable accounts.
- You will need a customer or a vendor in the account payable or account receivable entry.
- You can not add journal entries in your payroll and journal inventory accounts.
How to Make a Journal Entry In Quickbooks Online
Below we have explained the steps to add a journal entry in Quickbooks Online. Follow these steps in order to complete the process. If you need you can consult with the professionals at Quickbooks to know about which account should be used for the debit and credit side of the transactions. In case, you need guidance you can follow the steps below:
- Open the Quickbooks Software and press the “+” icon from the top.
- Now choose the journal entry option and now enter the transaction date in the date box.
- Now provide a number to the transaction to identify the transactions easily. however, this step is optional.
- fill the following details in the first distribution line:
- Accounts: Enter the details of the account that has been used in the Chart of Accounts.
- Journal Code(For France Users): Enter the journal code that is associated with that account. It is required to provide a new journal code as you will be reqruied to use this journal code while adding transactions to the debit and credit accounts.
- Debits or Credits: In general the first in line is always Debits. However, you can go through the transactions in the recent transactions report. Check if the debt has changed after saving the transactions or by choice.
- Description: Provide a description of the transactions to view the transaction details when you generate the reports.
- Name: Provide a Name of the vendor, Employee, or any customer in the line.
- Keep adding the entry until the total of the debit column transactions becomes equal to the credit column transactions.
- this is an option but you can choose to make a recurring journal entry schedule.
- after this save the transaction.
Remember the Points while Adding Journal Entry in Quickbooks
- if you have transactions in multiple entries then you have to create separate journal entries for each currency as Quickbooks Does not support multiple currencies in single journal entry. this can create an issue while converting the currency, it does not get converted to exact rates sometimes.
- In order to show the details on the expense or sales tab, make sure the entry has a field for A/R or A/P and for customer and vendor name.
- If you are using the Quickbooks Online plus then ensure that you have an additional column for location and class. check if the location and class column is enabled.
- If you have created an entry by mistake then you are required to edit the transaction by deleting or reversing the transaction.
So this was all about how you can add a journal entry in Quickbooks Desktop. If you have any queries related to this or you need guidance for anything with the Quickbooks Software then feel free to contact Quickbooks Experts. they have a team of professionals who have hands-on experience in these latest technologies. they can provide you a quality-efficient solution to all your queries.