In this tutorial, we will look at how to post journals in quickbooks.
After you open your quickbooks company file, in the menu options, locate the icon called company(or accountant for the quickbooks accountants edition).
Scroll down under the company/accountant option until you find the entry “Make general journal entries”
Click on the “make general journal entries “ option, this will open the window where you input your information.
The information needed include: date, entry no (number),account, debit, credit, memo, name and billable. Now let’s briefly look at each one of them.
- Date – this is the date when the transaction you are recording occurred.
- Entry (no) number – this is the journal entry number, you can either input manually by typing, or set the journal number entry to automatic .
- Account -This is the account that is being affected by the journal, e.g sales, salaries etc
- Debit/credit – under the double entry concept of accounting, for every debit, there must be a credit of equal amount. Therefore when you select your account, you either debit or credit depending on how your entries are.
- Memo – this is a brief narration of what the journal entry is recording e.g. being correction of salaries understated during initial posting.
- Name – in case your journal entry is going to affect control accounts e.g. receivables, then you can select the particular receivable being affected e.g. customer A
- Billable – under this, you either check the entry(tick) or leave it blank. You only tick if the entry is billable.
Now, let us look at some of the situations that may call for journals.
- When you want to correct an entry which was made and was either overstated or understated.
- When you want to reduce the amount that is receivable from your customer/payable to your supplier as a result of a discount issued/received.
- As much as journals are used for correcting accounting problems/issues, you can also use them for initial recording e.g. to record a sale, purchase etc.
It is worth noting that, if the journal entry you are making is to correct an error/issue, then next to the entry number you can check the section indicated as “adjusting entry”
Once you have recorded your journal, at the bottom where you save, you can either “save and close” (if you are not intending to make any more journal entries at the moment), or “save and new” if you are making another journal entry after completing the current one