When should you use a journal entry?
A journal entry can be used for transactions that aren't directly recorded through your bank, sales invoices or purchase invoices.
For example:
Recording depreciation
Correcting a previous accounting entry
Transferring an amount between ledger accounts
Recording other accounting adjustments
Only use a journal entry when there is no regular transaction or invoice available to record the entry.
How do you create a journal entry in Shine?
You can create a journal entry directly from your accounting records.
Go to Accounting in the main menu.
Create a new accounting entry.
Enter the date of the entry.
Add a clear description so you can easily identify the reason for the entry later.
Select the ledger account you want to debit.
Select the ledger account you want to credit.
Enter the corresponding amounts.
Review the entry and save it.
The total debit and credit amounts in a journal entry must always be equal. This ensures that your accounts remain balanced.
What should you check?
Journal entries directly affect your general ledger and can therefore also affect your balance sheet and profit and loss statement.
Always check:
That you have selected the correct ledger accounts
That the debit and credit amounts are equal
That you have used the correct accounting date
That the description clearly explains why the entry was created
💡 Tip: If you're unsure which ledger accounts to use, check with your accountant before recording the journal entry.