Skip to main content

How to Add Manual Journal

Overview​

Create manual journal entries to record accounting adjustments, corrections, accruals, provisions, or any non-routine transactions directly into your general ledger. The system ensures all entries are balanced with equal debits and credits before posting.

Prerequisites​

  • User must have Finance module access with journal creation permissions
  • Chart of accounts must be configured in System Settings
  • Department structure should be set up if using department allocation
  • Understanding of double-entry accounting principles

Step-by-Step Guide​

Step 1: Access Manual Journal​

Navigate to Finance → Manual Journal from the main menu and click the Add Journal button.

Key points:

  • The Add Journal form opens with today's date pre-filled
  • System assigns the next available Journal ID automatically
  • Currency defaults to your base currency setting

Step 2: Fill Header Information​

Complete the basic journal details in the header section.

Fields to fill:

Date* (Required)

  • Transaction date for the journal entry
  • Must fall within an open accounting period
  • Defaults to current date but can be changed
  • Format: DD/MM/YYYY

Journal ID* (Auto-generated)

  • Unique identifier for the journal entry
  • System generates automatically (e.g., JB-001, JB-002)
  • Can be edited if needed before saving
  • Once saved, ID cannot be changed

Reference (Optional)

  • External reference number or document ID
  • Used for linking to source documents
  • Example: "Invoice correction - INV-2025-123" or "Audit adjustment - AUD-45"

Notes* (Required)

  • Description explaining the purpose of this entry
  • Should clearly state what adjustment is being made and why
  • Example: "Depreciation expense for October 2025" or "Correction of misposted expense"

Currency (Required)

  • Select the currency for this journal entry
  • Defaults to base currency (₹ for INR)
  • Multi-currency entries not supported in manual journals

Department (Optional)

  • Assign the journal to a specific department
  • Used for departmental reporting and cost allocation
  • Select from dropdown of configured departments

Attachments (Optional)

  • Upload supporting documents
  • Click the upload icon to attach files
  • Supported formats: PDF, Excel, images
  • Multiple files can be attached

Step 3: Add Accounting Lines​

Record the debit and credit entries in the Accounting section.

Account (Required)

  • Click "Select an account" dropdown
  • Search by typing account name or code
  • Accounts are organized by type: Asset, Liability, Expense, Income
  • Select the appropriate general ledger account

Description (Required)

  • Line-level description for this account entry
  • Explain what this specific debit or credit represents
  • Can be same as or more detailed than header notes

Contact (Optional)

  • Link this line to a specific customer or supplier
  • Click search icon to find contact
  • Used when entry affects a party balance
  • Leave blank for general account adjustments

Debits (Amount field)

  • Enter amount if this account should be debited
  • System accepts positive numbers only
  • Cannot have both debit and credit on same line
  • Running total displayed at bottom

Credits (Amount field)

  • Enter amount if this account should be credited
  • System accepts positive numbers only
  • Cannot have both debit and credit on same line
  • Running total displayed at bottom

Action

  • Trash icon to delete the line
  • Click (+) button to add additional lines

Step 4: Balance the Entry​

Ensure total debits equal total credits before saving.

Key points:

  • System calculates running totals for debits and credits
  • "Total :" row at bottom shows debit and credit totals
  • Entry cannot be saved unless debits = credits
  • Add more lines using (+) button as needed
  • Delete incorrect lines using trash icon

Example balanced entry:

Depreciation Expense (Debit)     ₹10,000
Accumulated Depreciation (Credit) ₹10,000
Total:                           ₹10,000 = ₹10,000

Step 5: Save the Journal Entry​

Review all details and save the entry.

Click Add button to save the journal entry. If approval workflow is configured, the entry will move to pending approval status. Otherwise, it posts immediately to the general ledger.

Click Cancel button to discard changes and return to the journal list.

Key points:

  • Verify all required fields are filled
  • Double-check account selections
  • Confirm amounts are correct
  • Ensure entry is balanced
  • Review notes for clarity

Verification​

After saving, confirm the journal entry was created successfully:

  • System displays success message
  • Entry appears in Manual Journal list view
  • Journal ID is assigned and visible
  • If approval required, status shows as "Pending Approval"
  • If no approval needed, entry posts immediately to accounts

Common Issues & Solutions​

Issue 1: Cannot Save - Debits Don't Equal Credits​

Solution: Review all account lines and verify amounts. The total of all debit entries must exactly equal the total of all credit entries. Check for typos in amounts or missing lines.

Issue 2: Account Not Found in Dropdown​

Solution: The account may not be configured in your chart of accounts. Contact your system administrator to add the required account in BizAdmin → Configuration → Finance → Chart of Accounts.

Issue 3: Date Field Shows Error​

Solution: The transaction date must fall within an open accounting period. Check with your finance team if the period is closed. You may need to select a date within the current open period.

Issue 4: Cannot Select Department​

Solution: Departments must be configured first in BizAdmin → Organization → Departments before they appear in the dropdown. Contact your administrator to set up departments.

Issue 5: Contact Search Not Working​

Solution: The contact (customer or supplier) must already exist in the system. Add the contact first in Purchase → Suppliers or Sales → Customers before linking them to a journal entry.

Practical Examples​

Example 1: Monthly Depreciation Entry​

Scenario: Record depreciation of ₹25,000 for office equipment

Date: 31/10/2025
Reference: DEP-OCT-2025
Notes: Monthly depreciation for office equipment - October 2025

Depreciation Expense        Debit:  ₹25,000
Accumulated Depreciation    Credit: ₹25,000

Example 2: Correcting Misposted Expense​

Scenario: ₹5,000 was posted to wrong expense account, need to move it

Date: 10/10/2025
Reference: ADJ-001
Notes: Correct misposting - move from travel to utilities

Travel Expense              Credit: ₹5,000
Utilities Expense           Debit:  ₹5,000

Example 3: Accruing Unpaid Salary​

Scenario: Record salary expense of ₹50,000 that will be paid next month

Date: 31/10/2025
Reference: SAL-ACC-OCT
Notes: Salary accrual for October 2025 payable in November

Salary Expense              Debit:  ₹50,000
Salary Payable              Credit: ₹50,000

Need help? Contact support at support@bizconnekt.com