Steps For Creating Journal entry in QuickBooks Desktop
Through QuickBooks, journal entries can be used to edit or rectify transactions and post entries such as profit and loss adjustments. The journal entry process is quite simple and you need to note that you can only create one journal entry per vendor at aninstance. You will have to craft individual entries if you want to fix multiple vendor balances. To know more for creating journal entry in QuickBooks desktop, let us delve into the article.
Why record Journal Entries in QuickBooks?
Creation of Journal entries offers several advantages. Some of the chief advantages are enlisted below:
- You can enter debits and credits manually similar to the other accounting platforms,
- The process of transferring money between income and expense accounts becomes an easy task.
- Exchange of money between an asset, liability, or equity account to an income or expense account can be made possible.
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Directions to create Journal Entries in QuickBooks Desktop
By following the below-mentioned steps you shall arrive at the exact location of creating journal entries in QuickBooks. Make sure not to omit any of the steps.
- In the inception, you need to head to the ‘Company’ option, followed by choosing the ‘Make General Journal Entries’ option.
- In the ‘Make General Journal Entries’ window that shows on the screen, change the ‘Date field.’ Changing the date becomes necessary if you want to post an entry for a previous month or year. This will make sure that your entry is logged in the correct financial time period.
- In the ‘Entry No.’ field, assign a number with your journal entry. QuickBooks will number the subsequent journal entries in a consecutive order.
- Afterward, in the Account column, type the ‘general ledger account number’. In the Account column, you can alternatively choose the first account from the drop-down menu.
- In the Debit or Credit columns, enter the debit or credit amount for the account you’ve chosen. To make the entry balanced, make sure that the debits and credits are equal.
- Then, in the Memo Column, write a detailed memo. It will appear in reports containing this journal entry. This step is optional; however it is suggested so that you get reminded later on as to why you made the entry.
- Repeat the preceding steps until the entries are totally offset and the transaction balance reaches zero. The total in the Debit column should equal the total in the Credit column, resulting in a correctly balanced journal entry.
- To save the Journal entry, choose the ‘Save & Close’ option.
- If you wish to open a new window following the conclusion of this journal entry creation, choose on the ‘Save & New’ option.
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