How to Enter a Journal Entry in Quickbooks?

Managing your business account is challenging, even if you have the support of accounting software such as QuickBooks. This means even after outsourcing accounting services or bookkeeping, it is good if you have some understanding on working of some basic features of any accounting software like QuickBooks.

In general, QuickBooks records all your transactions, then you record your invoices, cheque, sales report, sales receipt etc., and then QuickBooks will pull all those data into its public record. But if, in case, you are required to enter any transaction manually, for example, rectifying an error, then you can use the feature journal entry in QuickBooks online.

In simple terms, journal entries are entries of various QuickBooks transactions made manually. Manual entries are useful, especially when you want to cancel a transaction that has been posted already. Manual entries can also be utilized for invalidating the effect of any transaction.

In QuickBooks, even if all transactions are entered in a general journal, you can still generate journal entries when you have the required tools. Utilize them only when you have a good understanding of accounting or follow any accountant’s advice. Moreover, you must have good knowledge of credits and debits as well.

How to Enter a Journal Entry in QuickBooks?

To enter a journal entry in QuickBooks, follow the below-given steps: 

Step 1 – Go to the menu Company and there choose to Make General journal entries.

Step 2 – Now you have to add the journal number and the date.

Step 3 – Then in the specific category column, add the right accounts.

Step 4 – Next, you have to enter both credit and debit amounts.

Step 5 – Ensure your credits are equal to debits when you are done.

Step 6 – Then, you have to add a description to the journal entry.

Step 7 – Now choose to save or save and close.

Steps to Edit Journal Entry

If you want to edit a journal entry, then here are the steps you need to follow: 

Step 1 – Go to the “Company” option present in the menu and choose to Make general journal entries.

Step 2 – Now search and choose the particular journal entry that you want to edit.

Step 3 – In Windows: Click on the find, enter name, date, entry no and then choose find.

Step 4 – In Mac: Search and choose the journal entry from the list present on the left-hand side of the window. Make general journal entries.

Step 5 – Now click the journal entry for Mac or double-click for windows and make your edits. When you have completed it, choose to save or save and close.

Step 6 – To record all edits, click Yes.

How to Reverse a Journal Entry?

Here are the steps for reversing a journal entry –

Step 1 – Navigate to the Company menu and click Make General journal entries.

Step 2 – Search and choose the journal entry that you want to reverse.

Step 3 – For windows: choose to Find and then enter your name, date, entry no, and the amount and then click find.

Step 4 – For Mac: Search and select the Journal entry you need to reverse present in the left-hand side of the Make general journal entries window.

Step 5 – Now choose Reverse.

Step 6 – Then click on Save or Save and close.

The reversed general entry possesses “R” just next to your entry number and debit and credit amounts. The new entry is the first day of the upcoming month which follow the real transaction date.

How to Delete a Journal Entry in Quickbooks?

To delete a journal entry you have to follow the following steps very carefully: 

Step 1 – Navigate to the Company menu and click Make General journal entries.

Step 2 – Search and choose the journal entry that you want to delete.

Step 3 – For windows: choose to Find and then enter your name, date, entry no, and the amount and then click find.

Step 4 – For Mac: Search and select the Journal entry you need to delete present in the left-hand side of the Make general journal entries window.

Step 5 – Now delete the journal entry.

Step 6 – For Windows: Double-click on the journal entry, click on delete or Void, and select OK.

Step 7 – For Mac: In the Edit menu, choose Delete general journal.

Step 8 – Now click on Save and close.

Steps to Create a Recurring Journal Entry in QuickBooks

A recurring journal entry is a template of a journal entry in QuickBooks that lets you make journal entry for transactions that recur on a fixed schedule. This type of transaction is useful for businesses who have subscriptions and memberships, utilities, mortgage payments, car loans or any other type of recurring payment.

Here are the steps you need to follow to create recurring general entries –

Step 1 – Go to the options accounting home and then select the Setup tab. Next, under the Automations menu, select recurring journal entries.

Step 2 – Now select New.

Step 3 – Before saving the New recurring journal entry, here are the field you need:

Step 4 – Recurring journal entry name.

Step 5 – Status: active or inactive.

Step 6 – Journal entry frequency details such as monthly, weekly, bi-weekly, semi-annual or annual.

Step 7 – Next journal entry date.

Step 8 – Now next step is entering the following details as required:

Step 9 – Type: Choose one from the Type drop-down list to indicate the recurring journal entry being created.

Step 10 – Source: You can leave it as “none”. When any journal entry is generated from a recurring journal entry, the source is automatically set to “recurring journal entry”.

Step 11 – Ledger: Click on the Lookup option to search for and choose the required Ledger.

Step 12 – Reference: Give information on the external source document.

Step 13 – End date: It specifies any date until the journal entries can be made from the recurring journal entry.

Step 14 – Now exit the screen by selecting any one of the below-given options:

Step 15 – Save: Save your New recurring journal entry.

Step 16 – Save and new: Saves your new recurring journal entry screen and provides you with another new screen to repeat the whole process if you want.

Step 17 – Cancel: Cancels the existing New recurring journal entry.

Why should you Create a Journal Entry?

You can create a journal entry in QuickBooks for the following reasons –

• Entering credits and debits manually such as in traditional accounting systems.
• Transfer your money between expense and income accounts.
• Then transfer money from equity, asset or liabilities to any income or expense account.

How can you View Old Journal Entries in QuickBooks?

To view your old journal entries in QuickBooks, you have to follow the below-given steps: 

Step 1 – First, log in to QuickBooks online and then click on the + sign present in the top right-hand side corner of your home screen.

Step 2 – Select Other and then go to journal entry.

Step 3 – In the left-hand corner, select the Clock icon and select view more.

Step 4 – Now choose journal entries.

You can view the old journal entries now.

How to Use the Advanced Search Option to Find Journal Entries in QuickBooks?

QuickBooks Online consists of an Advanced search option which will narrow your search for any specific transaction you require, or you can look at all journal entries in QuickBooks. While reconciling an account or digging in for any errors, you must check all old journal entries in your QuickBooks.

Step 1 – First, select the advanced option search.

Step 2 – Choose Journal entries from the menu.

Step 3 – You can see all journal entries in QuickBooks or use the filters to narrow your search.

Also Read: How to Clear Undeposited Funds in QuickBooks?

Conclusion

With journal entries, you can set up your opening balance for the chart of accounts and have the flexibility to move values in your books manually. That said, you will not face any problems with posting transactions or handling books within QuickBooks.