Journal entries are the last resort for entering transactions. They let you move money between accounts and force your books to balance in specific ways. Use them only if you understand accounting or you’re following the advice of your accountant. You can also find a ProAdvisor if you need one.
A few reasons why you’d need to create a journal entry are:
Entering debits and credits manually, like in traditional accounting systems,
Transfering money between income and expense accounts, or
Transfering money from an asset, liability, or equity account to an income or expense account.
On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
Enter information in the memo section so you know why you made the journal entry.
