Using the General Journal

You can use the general journal to make direct debit and credit entries to your accounts.  It is a good idea to be familiar with the double-entry accounting system of debits and credits before attempting to use this screen.

A debit entry represents an increase of an asset or expense, or the reduction of a liability, revenue, or equity.  A credit entry represents a reduction of an asset or expense, or the increase of a liability, revenue, or equity.  The debit column total must equal the credit column total before you can record a general journal transaction.

The general journal is only used for posting adjusting entries.  It cannot

• create or pay an accounts receivable or accounts payable invoice,
• automatically update inventory accounts when income and expenses are used,
• separate and record business and personal percentage amounts, or
• create or sell individual capital assets

To create a new general journal entry, go to the orange + button and select General journal entry.

Alternatively, you can go to More, General Journal, and click New journal entry.

Enter your description and date.  The reference is optional if you want to use it.

Your journal entry must be at least two lines long – one for a debit, and one for a credit.  However, most journal entries will take up several lines.  For each line, you will need to select the account and enter either a debit or credit amount.  The description and quantity fields are optional if you need them.

As you build your entry, the totals at the bottom of each row will update.  The goal is to get both columns to the same number.

Click Add a row to add as many rows as you need to complete your entry.

Once the sum of your debits equals the sum of your credits, you will click Save to record the transaction.

Click General Journal in the More section to see a list of all general journal entries that have been made in the current fiscal year.

You can edit or reverse and entry by clicking the entry.  To edit the entry, simply make the needed changes and click Save.  To reverse an entry, click Reverse.

Last updated on March 2, 2021 by FCC AgExpert