16 Nov Journal Entries Rules
Journal Entries Rules
Typical journal entries for QuickBooks include activities such as depreciation entries, income tax provisions, and loan interest adjustments. If it has been determined that a journal entry is in fact needed, keep in mind the following rules:
· Only one Accounts Receivable or Accounts Payable type account per entry.
· Any entry to an Accounts Receivable or Accounts Payable type account will require a customer or vendor, respectively.
· If QuickBooks is used as a write up program and Accounts Receivable or Accounts Payable detail is provided from another system, it is usually more efficient to create the accounts using the other current asset or other current liability type accounts.
· All journal entries may be considered to be cash basis, regardless of the accounts affected based on where the Accounts Receivable and Accounts Payable accounts are placed in the journal entry.
· Journal entries should not be made to inventory or payroll accounts. To do so may create subsidiary reports that do not agree with the general ledger.
· Entries can be made to correct class entries by choosing the same account for the debit and credit and only making the class designation different.
· As each journal entry is saved, the general ledger is automatically updated.
· To create a report of just the journal entries, filter the transaction detail by account report or the audit trail report for the transaction type of journal. If only the accountant journal entries are to be printed, choose the entered/modified date from the point that the financial statement reconciliation work began to the current date.
New with version 2002 is the ability to turn on the preference to automatically number journal entries.
New with version 2003 are several additional journal entry options that include a feature to reverse a journal entry, to view a list of journal entries on the bottom of the screen while entering a journal entry, etc.
New with version 2004 is the ability to make an entry as an adjusting entry and then create an adjusting trial balance report.
New with version 2005 is the ability to have the adjusting entries appear on a working trial balance report.