Journal Entry
Journal Entry gives you full control over your accounting records. It's the double-entry mode — you directly specify debits and credits across multiple accounts.
When to Use Journal Entry
Use Journal Entry when you need to:
- Split a transaction across multiple expense categories (e.g., a shopping trip with groceries and household items).
- Record complex financial events with more than two accounts.
- Make corrections or adjustments.
- Record transactions that don't fit the standard expense/income/transfer pattern.
For everyday transactions, Quick Entry is faster and easier. Journal Entry is for situations that require more flexibility.
How to Create a Journal Entry
- Go to Add Transaction and select the Journal Entry tab.
- Enter a description for the document (e.g., "Monthly household shopping").
- Pick the date of the transaction.
- Add line items:
- Select an account from the hierarchical account selector.
- Enter either a debit or credit amount.
- Add more lines as needed.
- Make sure the total debits equal the total credits (the form validates this).
- Tap Save.
Understanding Debits and Credits
Here's the simple rule:
| Account Type | Debit (increases) | Credit (increases) |
|---|---|---|
| Assets | Goes up | Goes down |
| Expenses | Goes up | Goes down |
| Liabilities | Goes down | Goes up |
| Revenue | Goes down | Goes up |
| Equity | Goes down | Goes up |
Example: Grocery shopping ($80) paid with debit card
| Account | Debit | Credit |
|---|---|---|
| Groceries (Expense) | $80.00 | |
| Bank Account (Asset) | $80.00 |
Example: Split purchase — $50 groceries + $30 cleaning supplies
| Account | Debit | Credit |
|---|---|---|
| Groceries (Expense) | $50.00 | |
| Cleaning Supplies (Expense) | $30.00 | |
| Bank Account (Asset) | $80.00 |
Document Status
Journal entries are created as drafts (Created status). You can:
- Edit — Modify amounts, accounts, or add/remove lines.
- Finalize — Lock the document as an official record (Accounting status). Once finalized, it cannot be edited.
- Delete — Soft-delete the document if it was entered in error.
Tips
- Use the account search — The hierarchical account selector lets you search by name or code. Type a few letters and the relevant accounts appear.
- Always check the balance — The form shows a running total of debits vs. credits. They must be equal to save.
- Start with Quick Entry — If you're new to accounting, Quick Entry handles the double-entry for you. Graduate to Journal Entry when you're comfortable with the concepts.