A manual journal entry can be created outside of the typical workflows of Accounts Receivable, Accounts Payable, and Payroll. They may be used to correct previous incorrect entries, make auditor adjustments to your starting balances, and more.
When creating a manual journal entry, you will be required to pick the specific accounts you want to debit and credit.
To enter a journal entry:
- Go to Financials Main > General Ledger > General Journal
- Select the plus sign (+) in upper right corner
- Create Journal Entry
- Add required details, including date and accounts to be affected by the transaction
- If more than two accounts will be affected, such as when a transaction involves multiple cash accounts, use the plus sign (+) next to Entries to create additional entries
- If the journal entry affects a function/object tied to a financial institution account, choose an Adjustment Type (see below)
The Adjustment Type field’s purpose is primarily to indicate whether a transaction should be reconcilable on a financial institution account statement. It can therefore generally be ignored if the journal entry does not affect any function in IL/object in MO that is tied to a financial institution account. For example, an entry debiting one expense account and crediting another will never appear on a financial institution account statement, regardless of what Adjustment Type is selected.
There are three options for Adjustment Type:
None: Use if the transaction should appear as an item to clear on a Financial Institution Statement.
Example: If the bank accidentally cashed a check for the wrong amount (e.g. $50.60 instead of $50.00). The $50.00 transaction would be recorded as an AP Payment, but you need to clear the extra $0.60, so you use a journal entry to debit cash.
Regular Adjustment: Use if the transaction should not appear on the Financial Institution Statements page.
Example: If you are transferring money from Fund 10 to Fund 20, but no money is actually being withdrawn from or deposited into the bank account.
Audit Adjustment: Use if the auditor makes a correction to your starting balances. When selecting this type, the date will automatically change to 7/1. These transactions will not appear on your Financial Institution Statement. They will be included in Starting Balances on various reports.