You may have to face moments when the accounting transactions are put incorrectly into the accounting system. In situations like this, you will have to make alterations to the original transactions. With the help of journal entry, you can rapidly do this in your Quickbooks accounting software. The Quickbooks journal entry is used to modify or correct transactions and post entries. For example modification of profit or loss.
The process of the journal entry is pretty simple and sober. It is important that you will only be able to make a journal entry for one single customer or vendor at a time. In case you like to correct multiple customer or vendor balances. Then, you’ll have to post separate entries.
So, before getting to know how to do this, it is important for you to understand what a journal entry is.
What is a Journal entry in Quickbooks?
If you do not know what a general journal entry is, then, let us tell you that a general journal entry is basically an accounting transaction. This accounting transaction is entered, posted, or directly straight to the general ledger. A firm’s general ledger is its main group of accounts. It is used to record and manage the balance sheet and income statement transactions.
For example, you’ll have entered the monthly $100 utility bill into your company’s insurance expense account by chance. You’ll post a modified journal entry to cut back, or credit the insurance accounting by $100 and increase, or debit the utility accounting by $100 to correct your mistake. All of your accounts would then be in the correct order, and you would not get to change the quantity owed by your merchant because that portion of the group action was recorded properly.
Journal Entries for Year-End Activities
Your certified public controller or bookkeeper may need to form journal entries to complete year-end activities, like posting tax changes to your books, recording depreciation expenses, or reclassifying revenues and expenses. Your accounting skilled will give you specific data if you would like to post the journal entries yourself at year’s finish, alongside explanations for why the entries were necessary for your specific state of affairs.
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How to Make Journal Entries In QuickBooks?
You have to follow these steps carefully in order to make general journal entries in Quickbooks.
Add a journal entry
In order for you to create a new journal entry, this is what you will have to do:
- Navigate down to the Company menu. Here, you have to select Make General Journal Entries.
- Enter the required fields to create your journal entry. Ensure that your debits are equal to your credits after you’re done.
- Hit Save or Save & Close.
Edit a journal entry
This is what you need to do to edit a journal entry.
- Launch Quickbooks and then open the Company menu. Choose Make General Journal Entries.
- You have to browse and choose the journal entry that you wish to edit:
- In QuickBooks for Windows: First, Click on Find. Now, type in your Name, Date, Entry Number. Later hit Find.
- In QuickBooks for Mac: Browse and choose the journal entry from the list. You will find this on the left side of the Make General Journal Entries window.
- Choose the journal entry (in Mac) or double-click it (in Windows) then make your updates. Once you’re done, hit Save or Save & Close.
- To make the changes possible, select Yes.
Reverse a journal entry
- You have to visit the Company menu and choose Make General Journal Entries.
- Simply select the journal entry you want to reverse:
- In QuickBooks for Windows: You have to Select Find. Fill in your Name, Date, Entry Number, or Amount. Hit the option named Find.
- In QuickBooks for Mac: Browse and choose the journal entry you want to reverse. You will find this on the left side of the Make General Journal Entries window.
- Select Reverse.
- Select Save or Save & Close.
The reversed journal entry has an “R” next to the entry number, and any debit and credit amounts reversed. The new entry is dated the first day of the next month, following the original transaction date.
Delete a journal entry
If you wish to delete or eliminate a journal entry, this is what you will have to do.
- Open the Company menu and choose to Make General Journal Entries.
- In QuickBooks for Windows: Click on notice and fill in your Name, Date, Entry No., or Amount. Choose the notice possibility.
- In QuickBooks for Mac: Notice and choose the journal entry you wish to reverse on the left aspect of the create General Journal Entries window.
2. Explore for the journal entry you wish to delete:
- In QuickBooks for Windows: Double-click the journal entry, then select Delete or Void, then OK.
- In QuickBooks for Mac: From the Edit menu, select Delete General Journal. To delete the journal entry:
Finally, you have to select Save & Close.
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You have reached the end of this post. Congrats! you have learned How to find journal entries in QuickBooks along with adjusting journal entries in QuickBooks. We hope that you were fascinated by our post. In that case, you may want to learn more about different tech-related articles. Feel free to check them out.