How to create Journal Entry in ERPNext?

All types of accounting entries are made using the Journal Entry or Journal entry is an entry to the journal. Journal is a record that keeps accounting transactions in chronological order, i.e. as they occur. Ledger is a record that keeps accounting transactions by accounts. Account is a unit to record and summarize accounting transactions.

Follow these steps to create Journal Entry in ERPNext

1)Goto Accounts->Journal Entry->New

you can see in the above figure,

In the New Journal Entry

Voucher Type-Here select the voucher type like if you doing entry for bank transaction then select Bank Entry or if you are entering cash transaction  then select Cash Entry in Voucher Type

Posting Date-On which date you are posting the JV/Journal Entry

2)Add Accounts details in accounting field

In the above figure you can see

Account-Select respective account head

Party Type-Here Party Type means Supplier/Customer

Party-Select the party name

Cost Centre-Select Cost Centre for income/expense

Amount-Enter the amount to Debit/Credit

Reference Type-Select the reference type like sales invoice,purchase invoice,journal entry

Reference Name-Select the reference name like sale invoice no/purchase invoice no

Is Advance-Select “No” if you are not taking advance amount or Select “Yes” if you want to make selectable in an invoice.

3)After adding rows for individual account entries,Credit/Debit amount,Reference,the Journal Entry look like

In the above diagram you can see, Debitor and Creditor accounts and amounts. Creditor and Debitor amount should be equal, otherwise it will show difference amount in Difference field(Difference(Dr-Cr)) and also you cannot submit Journal Entry.

Difference(Dr-Cr)-The “Difference” field is the difference between the Debit and Credit amounts. This should be zero if the Journal Entry is to be “Submitted”. If this number is not zero, you can click on “Make Difference Entry” to add a new row with the amount required to make the total as zero.

4)From Purchase Invoice/Sales Invoice you can create/generate Journal Entry/Payment Entry

In the above diagram you can see,you can create/goto Journal Entry by clicking Payment button in Purchase Invoice and it is same in Sales Invoice also.

5)Here you can see some common journal Entries for Food and Beverages/Telephone Bill/Rents