Creating a Journal Entry
Journal entries let you make direct postings to your accounts — bypassing the standard invoice/bill/expense workflow. They're used for adjustments, corrections, opening balances, depreciation, accruals, and other accounting entries that don't fit standard document types.
When to Use a Journal Entry
- Recording depreciation on fixed assets
- Correcting a misposted transaction
- Recording accruals at period end
- Adjusting retained earnings
- Recording a non-cash transaction
- Bank reconciliation adjustments
- Writing off bad debts
Tip: For most day-to-day transactions, use invoices, bills, and expenses. Reserve journals for accounting adjustments.
How to Create a Journal Entry
- Go to Accounting → Journals
- Click New Journal
- Fill in the header and journal lines
- Click Save
Journal Header Fields
| Field | Required | Description |
|---|---|---|
| Journal Number | Yes | Auto-incremented. Unique reference. |
| Date | Yes | The date the entry is effective |
| Reference | No | Internal reference or note |
| Notes | No | Description of what this journal is for |
| Currency | Yes | Defaults to company currency |
Journal Lines
Each journal entry must have at least two lines, and the total debits must equal the total credits.
| Field | Required | Description |
|---|---|---|
| Account | Yes | The account being debited or credited |
| Contact | No | Optional — link the line to a customer or vendor |
| Description | No | Line-level description |
| Debit | Yes* | Amount to debit this account |
| Credit | Yes* | Amount to credit this account |
*Each line is either a debit or a credit — not both.
The Golden Rule of Double-Entry
Every journal entry must balance:
Total Debits = Total Credits
If they don't match, Acusheet will not let you save the entry.
Example: Recording Depreciation
Scenario: Depreciate a vehicle by AED 5,000
| Line | Account | Debit | Credit |
|---|---|---|---|
| 1 | Depreciation Expense | 5,000 | — |
| 2 | Accumulated Depreciation (Vehicle) | — | 5,000 |
Example: Correcting a Misposted Expense
Scenario: An expense was posted to "Office Expense" but should be "Advertising"
| Line | Account | Debit | Credit |
|---|---|---|---|
| 1 | Advertising & Promotion | 1,000 | — |
| 2 | Office Expense | — | 1,000 |
Downloading a Journal as PDF
Open the journal and click Download. The PDF includes all lines with debits and credits, the journal number, date, and reference.
Frequently Asked Questions
Can I edit a journal after saving?
Yes. Open the journal and click Edit. Accounting entries are updated on save.
Can a journal affect Accounts Receivable or Accounts Payable?
Yes, but use caution. Posting directly to A/R or A/P can affect contact balances in ways that don't match actual invoices or bills. It's usually better to use credit notes or debit notes for those adjustments.
What's the difference between a journal and a voucher?
Journals are general-purpose accounting entries. Vouchers (Payment Vouchers and Receipt Vouchers) are structured documents used specifically to record cash payments and receipts — they generate a printable voucher document as well as accounting entries.
Can I post a journal in a foreign currency?
Yes. Change the currency on the journal header and enter the exchange rate. The system converts to your base currency automatically.
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