The journal entry in QuickBooks Online is an advanced accounting tool used for recording financial transactions when standard forms like invoices, bills, or checks do not apply. However, most daily tasks are automated in the software; knowing how to make a journal entry in QuickBooks is essential for manual adjustments and other accounting needs.

This guide explains how to create a journal entry in QuickBooks Online and how to delete a journal entry in QuickBooks if you ever need to reverse a mistake.

Why Use QuickBooks Journal Entry?

While standard forms like receipts or invoices automate most accounting tasks, a general journal entry in QuickBooks is necessary for specific, manual financial adjustments.

You should use a QuickBooks online journal entry for the following accounting needs:

1. Correcting Mistakes: Fix transactions posted to the wrong account or period without altering the original document.
2. Recording Depreciation: Record yearly or monthly depreciation of vehicles, machines, and buildings.
3. Entering Payroll Data: Input total wages, taxes, and liabilities using a payroll journal entry example in QuickBooks.
4. Adjusting Account Balances: Manually balance your books at year-end or period-end based on CPA recommendations.
5. Handling Loan Interest: Separate the principal payment from the interest expense on business loans.
6. Traditional Accounting: Provide your external accountant with a direct way to make compliance adjustments in your ledger.

How to Create a Journal Entry in QuickBooks Online?

A general journal entry in QuickBooks allows you to record a transaction manually without using a standard form like an invoice or bill. For every QuickBooks Online journal entry you make, your total debits and total credits must be equal to keep your books balanced. You can use this method to track income, record expenses, or shift funds between your accounts.

Prerequisites

Before you create a journal entry in QuickBooks, make sure you understand the basics of debits and credits. If you are unsure which accounts to impact, consult your accountant to prevent errors in your general ledger.

Simple Steps to Create a Journal Entry

Follow these steps to create a new journal entry in QuickBooks Online:

1. Click the + New or + Create button in the top left corner.
2. Select a journal entry from the list of options.
3. On the first line, choose an account from the Account field drop-down.
4. Enter the transaction value in either the Debits or Credits column.
5. On the next line, select the other account you want to move money between.
6. Enter the exact same amount in the opposite column to balance your debits and credits.
7. Remember, the software often auto-populates the matching amount in the opposite column on the second line automatically.
8. Repeat the process for more accounts if needed, ensuring total debits still equal total credits.
9. Write a clear description in the Memo section so you know the reason for the entry later.
10. Click Save and close to exit the window.

After saving your general journal entry in QuickBooks, the transaction immediately updates the general ledger. You can easily view the recorded entry by checking your specific account history or running a dedicated journal report to see all your general journal entry QuickBooks transactions in one place.

How to View a QuickBooks Online Journal Entry?

Once you save a transaction, you can easily view the entries later. You have two methods to find

and view your QuickBooks online journal entry:

Method 1. View via Account History

1. Go to Settings and choose Chart of Accounts.
2. Find the specific account you used in the general journal entry in QuickBooks.
3. Click View register in the action column.
4. Scan the list for the word “Journal” in the Type column to see the details.

Method 2. View via the Journal Report

1. Navigate to the Reports section and then select Journal.
2. Within the report window, click the Customise button to filter the entries.
3. Choose your target date range from the Report period drop-down.
4. From the Filter drop-down, check the Transaction Type box and choose Journal Entry from the options.
5. Click Run Report to display all your recorded journal entries.

How to Delete a Journal Entry in QuickBooks Online?

Now you have learned how to make a journal entry in QuickBooks Desktop. If you need to make corrections, you can easily reverse a QuickBooks Online journal entry to update your ledger. Alternatively, if you created the transaction by mistake, you can delete it entirely.

How to Reverse a Journal Entry

In case you need to make corrections within two different accounting periods or fix a balance error, follow these steps. This process simply swaps the existing debits and credits; it does not remove the original general journal entry. QuickBooks:

1. First, navigate to All Apps and choose Accounting, then select Chart of Accounts.
2. Find the specific account that created the journal entry for and select Account history.
3. Next, find the journal entry in the register. Look for the word “Journal” in the Ref No. or Type column.
4. Select the specific journal entry line to expand your view, then click Edit.
5. Click Save, then select Reverse from the action menu.

When you reverse a journal entry, QuickBooks automatically creates a new journal entry to balance it. This ensures a clean audit trail while making a few automated adjustments:

1. The new journal entry keeps the original journal no. and attaches an “R” with it. This means it’s reconciled.
2. It will be dated the first day of the month following the original journal entry date.
3. It will hold the information like account, name, and description, just like the previous journal entry.

How to Delete a Journal Entry

If you created a transaction by mistake, use these steps to permanently wipe it from your ledger. Make sure you are completely certain before proceeding, as removing an entry can immediately unbalance your books:

1. Go to All Apps, choose Accounting, and open your Chart of Accounts.
2. Locate the account associated with the mistake and click Account history.
3. Scroll to find the target transaction labeled Journal.
4. Select the entry line to open the detailed view.
5. Click Delete at the bottom of the screen, then select Yes to confirm the pop-up warning.

Final Thoughts

Hopefully, now you have understood how to make a journal entry in QuickBooks easily. By following the above simple guide, you can ensure that your business’s financial records are accurate and updated. Managing a general journal entry or QuickBooks transaction properly keeps your books balanced and your audit trail clean.

With these steps, you are fully prepared to manage any manual adjustments while keeping your bookkeeping precise and reliable.

Frequently Asked Questions

Question 1. What is a journal entry in QuickBooks?

A journal entry in QuickBooks is a manual, double-entry bookkeeping tool used to record financial transactions directly into the general ledger when a standard form is not suitable.

Question 2. How to delete a journal entry in QuickBooks Online?

The process of deleting a journal entry in QuickBooks Online is quite straightforward. You need to access the Chart of Accounts and go to the Account that you want to remove. Open the register and then simply click delete.

Question 3. How to make a journal entry in QuickBooks Online?

Making a journal entry in QuickBooks Online is used for complex transactions, adjusting entries, or corrections that do not use standard forms like invoices or bills.

Question 4. How to change a journal entry in QuickBooks Online?

To change a journal entry in QuickBooks Online, you can locate the entry through the search bar or reports, update the details directly, and save the changes.

Question 5. What are the three types of journal entries?

The three basic types of entries frequently mentioned for keeping the books of accounts updated are adjusting entries, closing entries, and reversing entries.