Journal Entries

Journal Entries are the core of the double-entry bookkeeping system. Every financial transaction in the Accounting module is represented as a journal entry with balanced debit and credit lines. The system automatically creates journal entries whenever relevant transactions occur throughout the module --- you rarely need to create them by hand.


List View

The Journal Entries table displays all entries with columns including entry number, date, description, total amount, and status.

How Journal Entries Are Created

Journal entries are generated automatically in response to events across the Accounting module. The table below lists every trigger, the type of entry created, and the accounts affected.

Expenses

Trigger	Entry Type	Debit	Credit
Expense created	Auto JE	Expense Category Account (pre-tax amount) + Tax Payable (tax portion)	Cash / Payment Account (total amount)
Expense edited (amount, tax, or account changed)	Void old + New JE	Same as create, using new values	Same as create, using new values
Expense deleted	Reversing JE	Cash / Payment Account	Expense Category Account + Tax Payable

Vendor Bills

Trigger	Entry Type	Debit	Credit
Vendor Bill created	Auto JE	Expense Account	Accounts Payable
Vendor Bill deleted	Reversing JE	Accounts Payable	Expense Account
Vendor Bill marked as paid	Payment JE	Accounts Payable	Cash / Bank

Invoices

Trigger	Entry Type	Debit	Credit
Invoice created	Auto JE	Accounts Receivable	Sales Revenue
Invoice paid (gateway payment)	Payment JE	Cash / Bank	Accounts Receivable
Invoice deleted	Reversing JE	Sales Revenue	Accounts Receivable

Payments

Trigger	Entry Type	Debit	Credit
Manual Payment created	Auto JE	Cash / Bank	Accounts Receivable

Note: Gateway payments (processed through a payment provider) generate their journal entry via the Invoice payment flow, not through the Payment record itself.

Assets

Trigger	Entry Type	Debit	Credit
Asset purchased	Auto JE	Fixed Assets	Cash / Bank
Asset maintenance recorded	Auto JE	Maintenance Expense	Cash / Bank
Asset liquidated / disposed	Auto JE	Cash (proceeds) + Accumulated Depreciation + Loss on Disposal	Fixed Asset + Gain on Disposal
Monthly depreciation (scheduled)	Auto JE	Depreciation Expense	Accumulated Depreciation

Recurring Transactions

Trigger	Entry Type	Debit	Credit
Recurring transaction due (scheduled)	Auto JE	Per template	Per template

Manual Entry

Trigger	Entry Type	Debit	Credit
Manual JE created	User JE	User-defined lines	User-defined lines

While most journal entries are system-generated, you can still create a manual journal entry when needed (e.g., for adjusting entries or corrections). Each line item requires an account, a debit or credit amount, and an optional description. Debits must equal credits for the entry to balance.

Reversing and Voiding

When a source record is deleted, the system automatically creates a reversing journal entry that mirrors the original but with debits and credits swapped. This preserves the audit trail rather than deleting the original entry.

When a source record is edited in a way that changes the financial amounts (e.g., updating an expense amount or tax rate), the system voids the original entry and creates a new one reflecting the updated values.

Entry Statuses

Journal entries have two possible statuses:

Status	Description
Draft	The entry has been created but is not yet finalized. Draft entries can still be edited or deleted.
Posted	The entry has been finalized and is reflected in account balances and reports. Posted entries cannot be edited.

If the Auto-post Journal Entries toggle is enabled in Settings > Accounting > Automation, automatically generated entries are set to "Posted" immediately. Otherwise, they are created as "Draft" and must be posted manually.