A journal entry is a way to record financial transactions or make direct changes to your accounts using debits and credits. It’s different from the automatic recording of transactions, such as invoices or checks. However, journal entries are used for specific tasks such as correcting errors, recording depreciation, or handling complex transactions and require manual entry of the date, affected accounts, and debit/credit amounts to keep your general ledger balanced.
To help you record the transactions, learn how to make a journal entry in QuickBooks Online with our detailed guide. Read this detailed guide to keep a record of your finances accurately.
Create a Journal Entry, Reverse or Delete it in QuickBooks Online
In the section below, we’ll explain how to make a journal entry in QuickBooks Online to record a transaction, reverse a mistake, or permanently delete it. Be careful when recording transactions, as this could cause the entire ledger to become unbalanced:
How to create a journal entry
Learn how to create or record a new journal entry:
- Select + Create.
- Choose Journal Entry.
- From the Account field, choose an account on the first line.
- Now, enter the amount in either the Debits or Credits column.
- Select the other account you are moving into on the next line.
- Enter the same amount in the opposite column to balance both the debits and credits.
- Repeat as required, and ensure the debits and credits columns are balanced across accounts.
- In the Memo section, add a description to explain the reason for the journal entry.
- Finally, click Save and New or Save and Close.
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How to reverse a journal entry
If you are allocating a transaction between two accounting periods or doing it to fix a debit and credit error, follow the steps below. This will reverse a journal entry, without deleting the original journal entry:
- Go to Settings at the top and select Chart of Accounts.
- Look for the account you created a journal entry for and select View register.
- Now, find the journal entry in the account register. Make sure the word “journal” shall be in the Ref No. or Type column.
- Choose the journal entry to expand the view and click Edit.
- Select Reverse or click Save.
When you reverse a journal entry, it won’t be reversed, actually, but QuickBooks creates a new journal entry to balance it. This keeps a record of the changes you have made. The new journal entry has slightly different information.
- The new journal entry retains the original journal number and adds the letter “R” to mark it as reconciled.
- It is dated the first day of the month after the original journal entry date.
- The new entry maintains the same Account, Name, and Description details as the original.
How to delete a journal entry
If you created a journal entry by mistake or you don’t need it anymore, follow the steps below to delete it permanently. You must be sure that you need to delete this journal entry, as it can’t be recovered again, which can quickly unbalance your accounts:
Note: If your accountant is handling the books, he or she may make an adjusting journal entry instead of reversing the original entry.
- Look up the account you created the journal entry for, then select View register.
- Go to Settings and choose Chart of Accounts.
- Look for the journal entry in your account register. Make sure the “Journal” word is in the Ref No. or Type column.
- Choose the journal entry to expand the view.
- Select Delete.
- Click Yes to confirm.
Conclusion
Creating a journal entry is not standard, but it is definitely a great way to record your transactions manually. The above steps should have helped you learn how to make a journal entry in QuickBooks Online, as well as how to reverse or delete it if needed.
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Frequently Asked Questions
How do you create a journal entry in QuickBooks?
To create a journal entry in QuickBooks, go to + New (or Company > Create General Journal Entries on desktop) and choose Journal Entry. Enter the date, then fill in the accounts, debits, and credits, ensuring the total debits equals the total credits. Add a memo, if necessary, then click Save & Close.
How do I manually add an entry in QuickBooks Online?
To manually add an entry in QuickBooks Online, go to your chart of accounts, select the account history for the desired account, and then click the drop-down for Add Journal Entry, Add Deposit, or Add Check. Select the transaction type, fill in the required fields, and click Save.
Where are my journal entries in QuickBooks Online?
To find the journal entries in QuickBooks Online, you need to use the search icon to find the transactions. Go to the Reports menu and run the Journal report, or open any recent entry you made, then click on the clock icon. The search and recent entry methods provide a quick way to access a list of all journal entries, while the report method allows for detailed filtering.