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Journal entries

Demo School discovers that KES 2,500 of classroom materials was posted to Other operating expenses. A reclassification debits Teaching materials and credits Other operating expenses for the same amount. It changes the expense category without pretending that money moved through the bank.

On this pageBefore you beginPrepare the journalCheck the resultIf submission is rejectedContinue with

Before you begin

  • Have the source document and the reason for the adjustment. Use invoice, receipt, payment or stock workflows when correcting those source documents.
  • Choose an open posting date and eligible posting accounts in the correct currency.
  • Confirm that you have permission to prepare and, when appropriate, submit journals.

Prepare the journal

  1. Open Accounting > General ledger > Journals and select New journal.
  2. Set the posting date and enter a meaningful purpose or reference.
  3. On the first line, choose Teaching materials and enter a debit of 2,500. On the second, choose Other operating expenses and enter a credit of 2,500.
  4. Use Add line only when the adjustment needs further accounts. Every line must have a positive amount on one side; leave the other side zero.
  5. Check that total debits equal total credits. Use the adjacent save-action menu to save a draft for review, or Create and submit journal when authorized and ready.
An actual, unsaved balanced journal example in Demo School. The example was closed without posting.

Check the result

A saved draft is preparation. Submission records the balanced journal. Open General ledger in Financial reports and use the posting date and account filters to inspect both sides. The adjustment should be traceable to its journal and explanation.

A correction to a submitted journal requires the available reversal workflow and a reason; do not overwrite its history.

If submission is rejected

  • Unequal totals: check signs, decimal places and missing lines. Do not add an unexplained balancing amount.
  • Closed date: use the authorized period process. A different date must reflect a real accounting decision.
  • Invalid account: verify posting status, currency and required dimensions. Refresh a stale draft before retrying.
Manage posting periodsCheck the general ledger