Journal entry
In Arabic قيد اليومية
A record of one transaction in the books, listing the accounts it debits and credits, with total debits equal to total credits.
In plain words
Every transaction touches at least two accounts. A credit sale, for example, raises what the customer owes, raises sales and raises the tax you owe, and the debits and credits must come to the same total.
Most journals come from documents such as invoices and payments. Manual journals cover what no document records, such as accruals or corrections, and should say why they were made.
The common mistake is editing a posted journal to fix an error. The right way is a reversing journal and a new one, so the record shows both what happened and how it was corrected.
- Debit receivables
- SAR 1,150
- Credit sales
- SAR 1,000
- Credit VAT payable
- SAR 150
- Debits = credits
- SAR 1,150
In Axon Suite
How Axon Suite handles it
A posted journal in Axon Suite can’t be edited; it is reversed by a mirror journal, and the two are linked. A journal someone typed is marked manual, so it never passes for one a document posted.
Feature
Every journal names its source
Every automatic journal names the document that posted it, and every invoice, bill and credit note lists the stock movement and journals it raised. One click takes you from one to the other.
Open: Every journal names its source