- Creating a Manual Journal
- Manual Journal for Accounts Receivable and Accounts Payable
- Manual Journal for Bank Accounts
Journals are usually used by accountants to work directly with the General Ledger to create both Debit and Credit entries for unique financial transactions. Some types include Sales Journals, Purchase Journals, Cash Disbursement Journal and Cash Receipt Journal. Journal entries are recorded in chronological order.
In Zoho Books, manual journals can be used to record these unique financial transactions which cannot be recorded otherwise. For example, Depreciation rates for a month cannot be recorded generally, in this case a manual journal for the depreciation rate is recorded for the particular month.
Creating a Manual Journal
To create a Manual Journal:
- Select Manual Journals under the Accountant tab in the left navigation bar.
- Click on +New Journal button to create a new journal.
Enter the the following details:
|Date||Date on which the adjustment needs to be made.|
|Reference Number||The manual journal will be associated with this number.|
|Notes||Mention a unique reason for creating the journal.|
|Journal Type||Choose Cash based Journal to generate reports of the manual journal based only on cash transactions and not on an accural basis.|
|Currency||The currency in which you wish to make the journal entry (by default, it is AED).|
|Account||Account from which the amount is to be debited and an account to which the amount is to be credited.|
|Contact||You can associate contacts to the journal entry.|
|Debit/Credit||Amount that needs to be debited or credited from the selected accounts.|
You can also attach files to the manual journal by clicking on the Attach Files icon. > Note: Make sure the amount debited is equal to the amount credited.
- Click Save.
Editing the Manual Journals
Manual Journal entries can be edited by clicking on any Manual journal that you wish to edit.
The reports that generally get affected by recording manual journals are:
- Balance Sheet
- Profit and Loss
Manual Journal for Accounts Receivable and Accounts Payable
Manual Journal for Accounts Receivables will be classified separately under an Accounts Receivable account in Zoho Books.
Let’s assume that you are migrating to Zoho Books from another system that you are currently using. You would have many unpaid invoices in that system, which need to be brought in here.
You can aggregate the total of all those receivables, and record them as an opening balance in the manual journal for Accounts Receivable.
Also, there may be certain cases, where you might need to record some transactions which are not a part of your business sales, but may account to some receivables. For example, Outsourced Services.
This is where the manual journal for AR comes into work. You can post an adjusting journal entry debiting AR and crediting your Service account.
These are generally the amounts that a company might owe to a supplier, from whom they purchased goods & services on credit. You can record manual journal entries for accounts payable in the following cases:
Purchase of goods from your supplier on credit, or payment made through credit card.
Payment is made for a credit purchase made earlier.
Also, there may be other scenarios where you cannot directly record a payable and would have to enter it manually, as a payable.
Note : The transactions made are taken on an Accrual Basis.
Manual Journals can be recorded for accounts involving FCY (Foreign Currency) but not for Credit Cards & Banking modules If you are not sure about creating manual journals for your account adjustments, please take the help of your accountant or bookkeeper.
Invite your accountant or bookkeeper as a User in the organization, so that they can take care of the journal entries. Learn more about inviting a user to the organization
Navigate to Accountant module and go to the Manual Journal section.
|Date||The date on which the journal is created.|
|Journal #||The order of the journals created (chronological order).|
|Reference Number||Reference number that can be associated with the journal created.|
|Currency||The currency in which you wish to record the journal entry.|
|Amount||The amount for which the journal is credited and debited.|
|Notes||Any notes relating to the created journal.|
|Contact||Enter or select the customer (for accounts receivable) or vendor (for accounts payable).|
Manual Journal for Bank Accounts
You can create a manual journal using the bank accounts that you’ve added in the Banking module. After you create a manual journal, the recorded transaction will be listed as a Manually Added transaction in the respective bank accounts as a deposit or a withdrawal.
You can match the manually added bank transaction to an uncategorized transaction. To match:
- Click on the Banking tab on the left navigation bar.
- Go to the Uncategorized Transactions tab of the respective bank account.
- Select an uncategorized transaction.
- The best possible matches are listed in the right side of the page which will contain the manually added transaction if the amount and date are same.
- Click Match on the respective transaction.
Learn more about matching and categorizing transactions.
Note: It is not possible to create a Manual Journal using a Bank account and a Accounts Payable or Accounts Receivable.