How to Create a Journal Entries

If you are using the Sage accounting software, you should have been able to streamline your accounting activities effectively, with the help of the amazing features available here. Sage 50 has also made entering and processing journal entries extremely easy for businesses and accounting professionals. If you are yet to use this feature, you have landed at the right place. In this blog, we will show an easy and step-by-step procedure to create journal entries in Sage.

Just go through this blog, perform the steps shown here and create journal entries on your own with ease. 

Let’s start with the basics first!

What is a Journal Entry?

A journal is primarily used to record non-regular transactions. A journal entry is basically an account transaction posted into the general ledger. While creating a journal entry, you need to follow the principles of double-entry bookkeeping, that is, for every debit, there must be a corresponding credit. 

Read More : Fix Saving Sage 50 Journal Entries Issue

The journal entry feature in Sage 50 would help you if you want to enter a transaction into the software manually (such as correcting an error). The software makes sure that any credit you enter is balanced accurately against a corresponding debit. A journal entry is also created in Sage to transfer money between the expense and income accounts. It facilitates the transfer of money from an asset, equity or liability account to an expense/income account.

What is the Procedure to Create a Journal Entries in Sage?

Please follow the steps below-

• Go to the Adjustments section
• Now click on Journals>>New Journal.
• Type in the following information in the appropriate boxes:
  • Date– Enter the date you wish to use for the journal entry
  • Reference– Enter a suitable reference for the journal.
  • Description– If needed, you may enter a description for this journal.

• Click a journal row and specify the following:
  • Ledger Account– Select the ledger account to use for the first line of this journal.
  • Include on Tax Return– you can mark this option if you need to bring the amount from this journal entry line onto your tax return.
  • Details– If needed, you can enter further details for the journal row.
  • Credit– If the journal row is for a credit value, type in the value in this row with the debit as 0.00.
  • Debit– If the journal row is for a debit value, type in the value in this row with the credit as 0.00.
• If you have created ‘active’ transaction analysis types in the Journals area, select the relevant analysis type.
• Repeat steps 4 and 5 for every journal entry line you need to enter.
• If needed, you can also insert rows above an existing entry, create a copy of a journal entry line and delete a journal entry line. 
• If you want to change the order of the journal entry rows, move the cursor over the Move icon adjacent to the row you wish to move. Now, drag it up/down as needed and drop it in the precise location. 
• If you need to attach a file, click on the Attachment button, click on the Upload files tab and then double-click on the file.
• Finally, click Save.

Also Read : Sage 50 Journal Entries not Showing up in Account

Final Words

Hopefully, the above discussion is helpful for you to create a new journal entry in Sage 50. If you are still having some confusion, please get in touch with some authorized Sage professionals.

Frequently Asked Questions(FAQs)