Advertiser Disclosure: Our unbiased reviews and content are supported in part by, and we adhere to strict to preserve editorial integrity. Journal entries, as an accounting concept, can take a while to grasp. The good news?
QuickBooks creates almost all of your journal entries for you automatically. The other good news? If you do have to create a journal entry, it only takes five steps. In this post, we’ll explain when you need to create a journal entry in QuickBooks and walk you through the journal entry process. Using an old version of QuickBooks Pro?
You can make general journal entries in QuickBooks by following these step-by-step instructions: Go to Company > Make General Journal Entries from the menu at the top of the screen. Change the Date field, if necessary, in the Make General Journal Entries window. Enter a number for your journal.
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When To Create A Journal Entry In QuickBooks Pro In, a journal entry is used to log which debit and credit accounts are affected by a given transaction. QuickBooks takes care of all the double-entry accounting behind the scenes. Whenever you enter a transaction (like an invoice or bill) in QuickBooks, the software automatically creates a journal entry for you. Take this bill for example: If we use the command shortcut Ctrl + Y, we can see the journal entry that QuickBooks automatically created for this transaction The entry tells us that Accounts Payable was credited $49.95 and the Other Business Expenses Account was debited $49.95. The debits and credits balance.
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Again, QuickBooks creates an automatic journal entry for every transaction entered in QuickBooks. Additionally, the software will adjust the journal entries if you edit or change the transaction.
So, most often, you won’t need to worry about it. However, there are a few cases where you may need to manually create a journal entry. For example, you’ll need to create an entry for depreciation. QuickBooks provides a list of all the In such instances, follow these five steps: Create A Journal Entry To begin, go to CompanyMake General Journal Entries You may see a notification letting you know that QuickBooks automatically numbers journal entries. You can eventually turn off auto-sequencing or change the beginning number, but for now, just click “OK” to get started.
Step 1: Enter Date Use the drop-down calendar to enter a date for your journal entry. For our company, we’re going to create a depreciation journal entry for the end of 2017. Step 2: Adjust Entry Number (Optional) At this point, you can adjust the beginning sequencing number of your journal entry. QuickBooks will automatically number your journal entries from here on out. Step 3: Add Debited Account In journal entries, you list the debited accounts first and then the credited accounts. If you need a refresher on debits and credits, read our. Select the account being debited.
Then enter the amount under “debit.” If desired, you can also add a memo, name, and mark the amount as billable. Step 4: Add Credited Account Select the credited account from the drop-down menu. QuickBooks automatically enters the credited amount under “credit” because the debits and credits must always match. If desired, you can you can also add a memo, a name, and mark the amount as billable. Step 5: Save Check that all of the information looks correct and that the debits and credits match. Then click “Save & Close” or “Save & New” if you’re planning on creating another journal entry.
For troubleshooting issues, check out the QuickBooks Community. Don’t forget to check out the rest of our QuickBooks Desktop Pro 101 Series to learn how to,. Overwhelmed by QuickBooks Pro? Maybe it’s time to switch to QuickBooks Online.
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