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Create a journal entry

In traditional accounting, a journal entry is a transaction with at least two parts - a debit and a credit.

As a rule, the Debit column total should be equal to the total of the Credit column.

When you record a transaction with a journal entry, QuickBooks Online labels the transaction as a Journal in the register or account history, and Journal Entry on reports that list transactions.

Note: Because multiple currencies don't always convert to the correct rates, QuickBooks Online doesn't support multi-currency in a single journal entry. Each currency must have its own journal entry.

Use of a Journal entry

  • Transfer money between income and expense accounts.
  • Transfer money from an asset, liability, or equity account to an income or expense account.
  • Use the traditional system of accounting that enters debits and credits in a general journal ledger.

Create a journal entry

  1. Select the Plus icon (+).
  2. Under Other, select Journal Entry.
  3. Enter the transaction date in the Journal date field.
  4. (Optional) Enter a Journal number to help identify the transaction in reports.
  5. On the first distribution line, in the Accounts field, enter any account listed in the Chart of Accounts.
  6. Enter the transaction amount in the Debits or Credits column.
  7. (Optional) Enter a description for the transaction.
    Note: The description you enter appears on reports that display transaction details.
  8. Specify a customer, vendor, or employee associated with the line, if any, in the Name field.
    Note: QuickBooks Online Plus and Advanced users - When the Classes and Locations feature is turned on, additional fields for Class and Location appears.
  9. Continue to enter distribution lines until the sum of the Debit column entries equals the sum of the Credit column entries.
  10. (Optional) Select Make recurring to set a recurring journal schedule.
  11. Select Save.

You can delete or reverse a journal entry to correct a transaction or to remove entries created by mistake.

To view a tutorial

To learn more about entering journal entries in QuickBooks Online, watch this tutorial video: