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How do I process Journal Entries

Created on  | Last modified on 

Summary

This article will show you how to process journal entries in the Accountants Area in Sage Business Cloud Accounting

Description

Journal entries allow you to post in different ledger accounts.

You can move balances from one account to the other (increasing one and decreasing the other or vice versa) and you can increase and decrease account balances with journal entries. 

Journals can be used to correct errors on ledger accounts.

Resolution

To create Journal Entries, you will need to go to:

  • Accountants Area > Process Journal Entries.

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  • You will then be taken to a page with a transaction line where you add in the information to complete your journal.

Note: Select the Account and enter the amount exclusive of VAT to be posted to that account. The amount inclusive of VAT will be posted to the 'By Affecting Account'.

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  • The date field will have to be the date on which you want this journal to take effect (you can back date it).
  • The effect field is for stating if you are increasing or decreasing the customers balance.
  • The account field you will have to select which ledger account you will like to affect.
  • The reference field is optional.
  • The description field you will need to type in some information on the journal you are processing.
  • The VAT field you will have to select based on your transaction.
  • The amount you can either put in as inclusive or exclusive (the system will work out from there)
  • The by Affecting account you would select the other ledger account (contra account). The by affecting account effect will be opposite to the effect you select for the first account.

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  • You can create multiple journals on this screen by clicking on the green plus to add more lines.
  • You can also view previously processed journals by selecting ‘Reviewed Journals”

 

Note:

Select the account and enter the amount exclusive of VAT to be posted to that account. The amount inclusive of VAT will be posted to the 'By Affecting Account'.

You are also able to import adjustments with a CSV file.
Select Save to save the journal entries created in Draft mode
Select the journal entries ready to update and click on 'Mark selected as reviewed'. 
Any journals not reviewed will not update the ledger accounts and reports


Watch the video on Processing Journal Entries