In the Accounting terms, a QuickBooks journal entry has two aspects and that is, a debit entry and a credit entry. And according to the rule, the sum of the Debit column is normally equal to the Credit column. QuickBooks online supports and maintains any types of transactions in the register/account history as journal transactions. And use the journal entry in QuickBooks online when you have to:-
- Send money between income and expense accounts.
- And second is, transfer money from liability, an asset, or an equity account to the income or the expense account.
- If you need to enter debits and credits in common the ledger or journal.
In this guide, we are going to show you how you can easily create a QuickBooks journal entry in QuickBooks online for your business and have your balance sheet tallied correctly. And with this, you can also share records of your journal entries or records of any type of transactions with other users who are authorized.
What Is a QuickBooks Journal Entry?
A general QuickBooks journal entry is an accounting transaction which posted immediately and directly to the company’s general ledger. Therefore, journal entries in QuickBooks online permit you to easily adjust any kind of transactions post entries.
And the process is very simple but you can only make a single entry for a customer at one time. If you want to make changes for multiple customers, so then you have to easily post separate entries.
Note: An accounting journal entry is really an amazing method used to save each accounting transactions into the accounting records of small or mid-sized businesses.
Some Important Rules to Create QuickBooks Journal Entry in QuickBooks Online
Most of the journal entries for QuickBooks are done for income tax provisions & plans, depreciation entries, and loan interest payment adjustments. And here are some conditions to easily create journal entries. These important rules are given below:-
- Have to add one account payable or accounts receivable type account every entry.
- Always use accounts payable or accounts receivable account on the second line of the journal entry.
- Entry to accounts receivable type or the accounts payable will always and definitely need a vendor or customer.
- And one more thing which is the most important, do not make journal entries to payroll accounts or inventory.
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In order to get started with creating a QuickBooks journal entry in QuickBooks online, then read the important following points:-
- A journal entry always contains Debit columns and also Credit columns.
- Liabilities and Assets must be maintained in every journal entries.
- With this, Profit and loss also should be maintained in the journal entries.
- And the last point is, accounting figures in the Debit column must always tally with the Credit column.
How To Create a QuickBooks Journal Entry in QuickBooks Online?
Discuss with QuickBooks enterprise accounting professionals team for all knowledge and guidance. If you still do not know and confirm which account needs the Debit and Credit side of every transaction then simply follow the below easy and instant instructions correctly and properly. Follow the below steps properly to easily create a QuickBooks journal entry in QuickBooks online.
- First, just go to the top and then simply choose the ‘Plus icon’ and click the journal entry option.
- Now simply enter the transaction date in the journal date field.
- After this step, just put a journal number of the transaction in the report so that you can easily and quickly identify the transaction.
- Now just fill in the first distribution line.
Accounts:- Refers to your account in the chart of accounts.
Journal Code (For France Only):- Just fill in the journal code related to the account. It is necessary to include a new journal code. And you have to use the same journal code related to every transaction for debit and credit accounts.
Debits or Credits:- Normally, the first in line is Debits. And you can just look for the transactions in a new and recent transaction report. Now see if debit has changed as per the choice or after you have just saved the transaction.
Description:- In this field, you have to simply enter a description to view transaction details on reports.
Name:- Simply select an employee, vendor, or customer related to the line if there is any.
- If the total of debit column journal entries does not always equal the sum of Credit column journal entries, then just continue to fill in the distribution lined until the total of both transactions is equal.
- Now simply choose to make a recurring journal entry schedule. By the way, this step is optional.
- Finally, just save the transaction.
Things to Remember Create a QuickBooks Journal Entry in QuickBooks Online
- Every currency or money should have its journal entry as QuickBooks online never supports multi-currency in one journal entry. And many of the times, multiple currencies do not get easily converted to better and correct rates.
- To reflect on sales or expense tab, make sure that entry has a line for either A/P or A/R, and the customer or vendor name.
- View the new and extra column for location & class if you are using the QuickBooks online plus. And the feature of locations and classes is always ON.
- In case you create a journal entry by chance, and you need to correct your transaction, then you can simply delete or reverse the journal entry.
You can get more support on the QuickBooks journal entry template at Primeaxle.