Every entry has two sides that must match, like moving money from one labelled jar to another.
Journal entries are the only way amounts reach the ledger. An entry needs at least two lines with equal debits and credits, in the organization's currency, dated in an open period. Posting makes it permanent; corrections are made with a linked reversing entry.
Steps
- Choose New journal entry.
- Enter the date, description and reference.
- Add lines: account, debit or credit, and amount. The footer shows the difference until it balances.
- Save as a draft, or post when it balances.
What you get
Posted entries appear in the general ledger and in every report.
Who can do this
Owners, admins and accountants can post or approve; bookkeepers can prepare drafts; managers and viewers can only view.
If something goes wrong
- Post is disabled.
- Debits and credits must be equal and above zero, and you need a role that can post.
- I posted a mistake.
- Posted entries cannot be edited or deleted. Create a reversing entry and then the correct one.
Terms used here
- Journal entry
- A dated record of one economic event, made of two or more lines. Total debits must equal total credits.
- Debits and credits
- The two sides of every journal line. Assets and expenses increase with debits; liabilities, equity and revenue increase with credits.
- Posting
- Making a balanced journal entry final. Posted entries cannot be edited or deleted; a mistake is corrected with a linked reversing entry.
- Draft
- A journal entry that has been prepared but not posted. Drafts never affect reports.