How to create Journal Entry in QuickBooks Online?
QuickBooks Journal Entry allows you to adjust/correct transactions and post entries, which is not possible in some scenarios like making adjustments to profit or loss. The Blog will focus on steps and process on how to create a Journal Entry in QuickBooks.
Sometimes, the accounting transactions contain wrong data or the transaction is divided into two separate General Ledger Accounts. Consequently, the amendments required in the original transactions can be done with the help of ‘QuickBooks Journal Entry’.
Creating a Journal Entry in QuickBooks is very simple. Therefore, you can do it only for a single customer or vendor at a particular time. However, QuickBooks does not have a ‘Bulk Entry’ option. If you want to correct multiple customer/ vendor balances, post separate entries, Although QuickBooks 2017 had some time preserving data entry options.
Definition of QuickBooks Journal Entry
In QuickBooks, journal entries allow you to adjust transactions submit entries. Journal entries mainly used to record the entries related to income tax provisions, bookkeeping depreciation entries and loan interest adjustments. The main thing to remember is to create separate entries only if you want to do changes for multiple clients.
Additionally, General QB Journal Entry is a transaction placed directly to General Ledger. A Company’s General ledger is the primary group of accounts that is used to record the Balance sheet & Income statement transactions.
Your qualified Public accountant or a bookkeeper will update Journal entries to complete the year-end activities. These year-end activities include posting tax adjustments to books, taking down and recording depreciation expense, or reclassifying the revenues and the costs.
Steps to create Journal Entry in QuickBooks Online
You can create General Journal Entries in QuickBooks by performing the steps given below:
- First, Go to Company.
- Click ‘Make General Journal Entries’ from the menu.
- Go to Make General Journal Entries windows and modify the ‘Date’ field as default. Therefore, If you want to post an entry for a prior month/ year, make sure that the entry is recorded in the proper financial period.
- Enter a journal number in the ‘Entry No. field’. Moreover, QuickBooks will automatically do a sequential numbering for the other journal entries.
- Next, Enter the General Ledger Account number in ‘Account Column’. Choose the first account that comes in the drop-down menu in the Account column section.
- Fill the Debit or Credit amount for the accounts you have selected into the Debit/Credit columns. The debits and credits should be equal to generate balanced entries and permits QuickBooks to post an entry.
- Now fill in a descriptive memo in the ‘Memo Column.’ This descriptive memo appears in the reports having QuickBooks journal entry. You can leave or perform this step as you choose, this will help you remember the purpose of creating the entry.
- Perform steps 4 & 6 until you see the journal entries equalize each other and the transaction reaches a ‘Zero balance.’ Although, the Debit column total/sum should be equal to the credit column total, and you can see a properly balanced QuickBooks journal entry.
- Click Save and shut the window, or Press Save and New to save the Journal Entry. You will have a QuickBooks journal entry opened in a new window.
The list of steps, as shown above, will help you in making journal entries in QuickBooks Online. We have tried our best to provide you the way to create Journal entry in QuickBooks Online.
That’s all for this blog. With the above-given steps, you can quickly and comfortably make general journal entries in QuickBooks. If you need any technical help or expert guidance on the above, you can speak to a technical assistant at QuickBooks Online Support Number 1-855-857-0824.