Journal entries are used to adjust the balance of ledger accounts. Most commonly, you'll use a journal entry to quickly correct mistakes made throughout the year without editing the original transactions.
For example, if you used the expense account Meals and Entertainment for 50 transactions when you should have used the account Travel Expenses, you can use a single journal entry to transfer the total amount of those transactions from Meals and Entertainment to Travel Expenses.
To create a journal entry:
Under the Accounting tab, click Ledger. The Ledger page appears.
Hover over Create Transaction and select Other Transaction. The Transaction window appears.
Enter the Amount, Date, From Account, To Account, set the status to Paid, and click Save.Note: Other fields don’t apply to a journal entry and can be left blank. Changing the status to Paid indicates that the transaction has already occurred.
You've successfully created a new journal entry.