In MYOB Essentials, journal entries are transactions you can use to track business activity that you wouldn’t want to track with other kinds of transactions, such as deposits or payments.

Usually, journal entries are used for special situations only, such as when you need to record depreciation of your assets, or when you need to enter year-end adjustments to your financial records. (For more information about using journal entries to record depreciation, see About depreciation accounts.)

Each row of information you enter in a journal entry is called a line item. You can enter as many line items for an entry as you like, but you must have at least two line items—a debit line item and a credit line item to offset it. When you’ve finished entering debits and credits for the journal entry, the transaction should be balanced. If it is, you’re ready to record the transaction.

Recording journal entries

Record a journal entry by going to the Settings menu and choosing General journals. The General journals page appears.

Entering amounts in journal entries

You should enter only positive numbers in the Debit and Credit fields. If you want to enter a negative number, be aware that a negative debit amount is the same as a positive credit amount, and vice versa. In other words, a positive amount in the Credit field is the same as a negative amount in the Debit field, and a positive amount in the Debit field is the same as a negative amount in the Credit field.

You can’t record a journal entry in which a line item includes an amount in both the Debit and the Credit fields. To balance a transaction, at least two line items—one with an amount in the Debit field and one with an amount in the Credit field—must be entered.

Viewing journal entries

You can view the list of journal entries you’ve made over a specified period by choosing General journals from the  Settings menu. You can also search for a particular journal entry by entering details in the Search field.

To view an individual journal entry, click on the number in the References column for the entry you want to view.

Changing and deleting journal entries

Usually, you shouldn’t alter journal entries once they’re saved. Instead, it’s best to make two new entries (one debit and one credit) to reverse the originals, then make two more new, correct entries.

If you do need to change or delete a journal entry, open the journal entry by clicking on the number in the References column on the General journals page. Change the journal entry by editing the information on the screen and then clicking Save. To delete the journal entry, click the Delete link at the top of the screen.

If you need help regarding journal entries, consult an accounting advisor (such as your accountant).

Tracking tax on journal entries

You have full control over how tax amounts affect each journal entry. You can calculate and track tax amounts from the Journal entry page.

Calculations are made using the Tax (Australia) or GST (New Zealand) rate you select for each line item in the journal entry. You can choose whether line item amounts are Tax/GST inclusive or Tax/GST exclusive. The Tax Amount (Australia) or GST Amount (New Zealand) field calculates and displays the tax amounts automatically.

For information about adding and finding journal entries, see Adding and finding journal entries.