Adjust Journal Entries in QuickBooks Online

Managing Journal Entries is an essential task for maintaining accurate financial reporting. A journal entry in QuickBooks Online is a financial record that logs every business transaction. Each entry consists of at least two accounts, one for debits and another for credits. Journal Entries in QBO can be used to ensure that books are balanced. Apart from this, it will help in allocating transactions to the correct account, generating summary documents and financial reports, and budgeting and forecasting.

In this article, you will learn how to manage Journal Entries in QuickBooks Online by checking, creating, deleting, and reversing these entries. Mentioned below are the ways to manage journal entries.

How to Managing Journal Entries in QuickBooks Online

Managing journal entries in QuickBooks Online involves checking existing entries for accuracy, creating new ones to record transactions, deleting incorrect entries, and reversing entries when necessary. This ensures that financial records remain accurate and up-to-date, helping businesses maintain proper accounting practices.

1. Steps to Checking Journal Entries

To view your journal entries, you can generate a Journal Report in QuickBooks Online. This report will give you an overview of all transactions recorded through journal entries. Follow these steps to check journal entries:

• Go to the Reports menu: In the left-hand navigation panel, select the Reports option.
• Find and select the Journal report: In the report search bar, type “Journal” and select the Journal report.
• Customize the Report: Once the report window opens, click the Customize button to filter your journal entries based on your preferred date range and transaction types.
  • Under Report period, select the date range.
  • In the Filter dropdown, check Transaction Type and choose Journal Entry.
• Run the Report: After customizing the filters, click the Run Report button to view the entries.

You can also save this customized report for future use and print it if needed. This allows you to track your journal entries more easily over time.

2. Steps to Creating a Journal Entry

Creating a journal entry is a straightforward process in QuickBooks Online. Follow these steps to record your financial transactions:

• Navigate to the + New button: On the left-hand side of your screen, click the + New button.
• Select Journal Entry: You must choose Journal Entry from the Other section from the lists of options available in the dropdown menu.
• Select Accounts and Amounts: On the first line, select the account you want to debit. Enter the amount in the Debit column. Then, on the second line, select the other account involved in the transaction and enter the corresponding amount in the Credit column.
• Ensure the Balancing: Make sure the total debits equal the total credits to keep the accounts balanced.
• Add Memo Details: In the memo section, include details about the transaction, such as the reason for the entry, to help track its purpose.
• Save the Entry: After reviewing, click Save and Close or Save and New if you need to create another entry.

3. Steps to Deleting a Journal Entry

If you accidentally created a journal entry or need to remove it, QuickBooks Online provides an option to delete it. However, be cautious as deleting an entry can affect your financial records. Mentioned below are the steps to delete a journal entry:

• Go to the Gear icon: In the top right corner of the screen, click the Gear icon and select Chart of Accounts under the Your Company section.
• View the Account Register: Find the account associated with the journal entry and click View Register.
• Find the Journal Entry: Look for the journal entry in the account register. It will have the word “Journal” in the Ref No. or Type column.
• Delete the Entry: Select the journal entry, then click Delete. A confirmation message will pop up asking if you’re sure about deleting the entry. Click Yes to confirm.

Note: You can’t delete journal entries in bulk, so each entry will need to be deleted individually

Deleting Bulk Journal Entries

While QuickBooks Online doesn’t support deleting multiple journal entries at once, you can still delete entries one by one. Follow these steps for each entry:

• Navigate to the Accounting menu: On the left panel, click the Accounting option.
• Select Chart of Accounts: Choose Chart of Accounts from the menu.
• View the Account Register: Next to the relevant account, click View Register.
• Delete Each Entry: Select the transaction or entry you want to delete, click Delete, and confirm your action.

Although this process is repetitive, it’s the current method available in QuickBooks Online. Keep an eye on QuickBooks updates for any improvements or new features related to bulk deletion.

4. Steps to Reversing a Journal Entry

In certain situations, you might need to reverse a journal entry, such as when correcting an error or allocating a transaction between different accounting periods. Mentioned below are the to reverse a journal entry:

• Go to the Gear icon: Click on the Gear icon and select Chart of Accounts.
• Select the Account: Find the account where the journal entry was made, and click View Register.
• Find and Edit the Journal Entry: Look for the journal entry in the account register, then click to expand it. Select Edit.
• Reverse the Entry: Click Reverse and confirm your action.
• Save the Reversed Entry: After reversing the entry, click Save.

Read More: Manage Journal Entry in QuickBooks Desktop

QuickBooks will create a new journal entry with the letter “R” to indicate that it’s reconciled. The reversal will occur on the first day of the month following the original journal entry date, and it will retain the same details as the original entry.

By understanding how to create, view, delete, and reverse journal entries, you ensure that your financial data remains organized and balanced. Whether you’re managing individual transactions or correcting past mistakes, QuickBooks Online offers powerful tools that make these processes efficient and straightforward.

Read More: Fix Beginning Balance Issues in QuickBooks

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