Journal Entries

Sage Line 50 provides both the traditional æJournal EntryÆ facility to transfer balances between your Nominal Ledger accounts and a bank transfer option to move money between your bank and cash nominal accounts. This section deals with the traditional Journal Entry method, which lets you make æmanualÆ double-entry transactions, commonly called Journal Entries.

You can use the journal to make transfers between any of your nominal account codes regardless of type: Asset, Liability, Income or Expenditure. As well as this, a Journal entry can also be used to correct an incorrect transaction. By using a Journal Entry you can see the see the error that was made and the Journal that was used to correct it on the audit trail.

But beware, when using the Journal you must adhere to strict double-entry bookkeeping principles; for every debit total there must be a corresponding, balancing credit. This does not mean that for every single debit item you must post a single credit item. For example, you can post several debits but one balancing credit, and vice versa. As long as the net difference between your postings is always zero (i.e. the total value of credits equals the total value of debits), you can post the journal.

Accountant Plus and Financial Controller users only: If you make the same journal entries regularly, you can save each entry as a æskeletonÆ.