📚Journal Entries
Journal Entries are the core of the double-entry bookkeeping system. Every financial transaction in the Accounting module is represented as a journal entry with balanced debit and credit lines. The system automatically creates journal entries whenever relevant transactions occur throughout the module — you rarely need to create them by hand.
List View
The Journal Entries table displays all entries with columns including entry number, date, description, total amount, and status. For general information on searching, filtering, sorting, column options, saved views, and row actions, see Common UI Patterns.
How Journal Entries Are Created
Journal entries are generated automatically in response to events across the Accounting module. The table below lists every trigger, the type of entry created, and the accounts affected.
Expenses
Expense created
Auto JE
Expense Category Account (pre-tax amount) + Tax Payable (tax portion)
Cash / Payment Account (total amount)
Expense edited (amount, tax, or account changed)
Void old + New JE
Same as create, using new values
Same as create, using new values
Expense deleted
Reversing JE
Cash / Payment Account
Expense Category Account + Tax Payable
Vendor Bills
Vendor Bill created
Auto JE
Expense Account
Accounts Payable
Vendor Bill deleted
Reversing JE
Accounts Payable
Expense Account
Vendor Bill marked as paid
Payment JE
Accounts Payable
Cash / Bank
Invoices
Invoice created
Auto JE
Accounts Receivable
Sales Revenue
Invoice paid (gateway payment)
Payment JE
Cash / Bank
Accounts Receivable
Invoice deleted
Reversing JE
Sales Revenue
Accounts Receivable
Payments
Manual Payment created
Auto JE
Cash / Bank
Accounts Receivable
Note: Gateway payments (processed through a payment provider) generate their journal entry via the Invoice payment flow, not through the Payment record itself.
Assets
Asset purchased
Auto JE
Fixed Assets
Cash / Bank
Asset maintenance recorded
Auto JE
Maintenance Expense
Cash / Bank
Asset liquidated / disposed
Auto JE
Cash (proceeds) + Accumulated Depreciation + Loss on Disposal
Fixed Asset + Gain on Disposal
Monthly depreciation (scheduled)
Auto JE
Depreciation Expense
Accumulated Depreciation
Recurring Transactions
Recurring transaction due (scheduled)
Auto JE
Per template
Per template
Manual Entry
Manual JE created
User JE
User-defined lines
User-defined lines
While most journal entries are system-generated, you can still create a manual journal entry when needed (e.g., for adjusting entries or corrections). Each line item requires an account, a debit or credit amount, and an optional description. Debits must equal credits for the entry to balance.
Reversing and Voiding
When a source record is deleted, the system automatically creates a reversing journal entry that mirrors the original but with debits and credits swapped. This preserves the audit trail rather than deleting the original entry.
When a source record is edited in a way that changes the financial amounts (e.g., updating an expense amount or tax rate), the system voids the original entry and creates a new one reflecting the updated values.
Entry Statuses
Journal entries have two possible statuses:
Draft
The entry has been created but is not yet finalized. Draft entries can still be edited or deleted.
Posted
The entry has been finalized and is reflected in account balances and reports. Posted entries cannot be edited.
If the Auto-post Journal Entries toggle is enabled in Settings > Accounting > Automation, automatically generated entries are set to "Posted" immediately. Otherwise, they are created as "Draft" and must be posted manually.
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