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This is a list of Journal Entries, the aim of which is to make adjustments. The values entered in the Credit and Debit columns must be equal.
To view this list select Company / Journal Entries List from the Main Menu.
Take the following steps to make a Journal Entry:
- Select Company / Journal Entries List from the Main Menu.
- Make right click in the field of the Preview Pane and select Add.
- Enter the required information into the fields of the New Journal Entry window.
- Enter the reason for the Journal Entry in the Memo field. This is required. The entry can not be saved without a note.
- Set the date for the new Journal Entry. Enter the date manually or choose it from the drop-down calendar.
- Enter the Reference number of the Journal Entry if there is one.
- In the Account ID column enter the Accounts manually or choose them from the drop-down list.
- Enter the Debit and Credit amounts. They must be equal.
- Enter a description for the entry if necessary.
- Enter the name of a subaccount (Customer, Vendor, Employee or Payee) manually or choose it from the drop-down list in the Person column, only if the account requires a subaccount, such as Accounts Payable and Accounts Receivable. Two of them can not be used simultaneously.
- Press either the Save and Close Window or Save and New Document button that will allow you to create a new entry
without closing the current window.
- Press the Approve button to finalize the document or the Finalize and Close window button to approve the current
entry and close the window.
When entering a transaction in a register, it can be "split" among different accounts to keep track of how much money is spent on each
account. For example, the company may want to pay for something using different accounts. One payment is divided among different
accounts.
To enter a new split transaction make the following steps:
- Add a blank entry.
- If you want the date to be different from today's date, change the date in the Date field.
- Press Tab and enter the number in the Reference Number field. Edit the number if you want the transaction to have a different number.
- In the Account ID field, select an account.
- In the Credit and Debit columns enter the amounts to be assigned to the corresponding accounts. The values must be equal.
- Select the name of a Payee, Vendor, Customer or Employee.
- In the Comments field, enter a note about the current transaction.
- Press either the Save and Close Window or Save and New Document button that will allow you to create a new entry
without closing the current window.
- Press the Approve button to finalize the document or the Finalize and Close window button to approve the current
entry and close the window.
The transactions go through the Journal Entry in cases when they can not be performed automatically from other windows of the Free Accounting.
For example:
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The operation of paying a salary.
The following accounts are affected:
Checking - Decreases as the money is drawn from the account.
Payroll Taxes - Increases as the liability for paying the payroll taxes increases.
Employer (or other expense accounts such as Office Salary Expense, Executive Salary Expense etc.) - Increases as the expenses rise.
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The transaction of granting a rebate to our company by a Vendor is performed in the Journal Entry.
In this transaction the following two accounts are affected: Accounts Payable and Vendor Rebates.
Accounts Payable - Decreases as the Vendor grants a rebate that decreases our liabilities.
Vendor Rebates - Decreases as the amount of the rebates account decreases.
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The transaction of gaining a credit from a Vendor is also performed in the Journal Entry.
The accounts affected:
Accounts Payable - Decreases as the Vendor grants a credit that decreases our liabilities.
Cost of Goods Sold - Decreases as the amount of the account of goods' cost decreases.
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Make a Journal Entry to transfer the amount of deposits or credits from the old system.
If it is deposits:
Bank account - Increases as the payment is received.
Equity/Net worth - Increases as the company's equity increases.
If it is credits:
Bank account - Decreases as the money is drawn from this account.
Equity/Net worth - Decreases as the company's equity decreases.
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Make a Journal Entry to transfer money from one bank account to another.
For example, when transferring money from the Savings account to the Checking account the following transaction takes place:
Checking account - Increases as the assets (money) are deposited into this account.
Savings account - Decreases as the assets (money) are drawn from this account.
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