Journal Entries
A Journal Entry is a manual booking — debit some accounts, credit others, for the same amount. Use it when no standard document (invoice, payment, stock entry) applies.
When to use a Journal Entry
| Situation | Example |
|---|---|
| Adjusting entry | Accrue salaries for end of month before the actual payroll runs |
| Reclassification | Move an amount from one expense to another |
| Correction | Fix a posting that went to the wrong account |
| Opening balances | Initial setup of receivable/payable/bank balances from your previous system |
| Bank fees, interest | Recurring small items the bank deducts |
| Depreciation | Manual monthly depreciation entries |
For most day-to-day work (sales, purchases, payments, stock), don't use Journal Entries — the dedicated documents (Sales Invoice, Payment Entry, etc.) post correctly automatically.
Create a Journal Entry
Journal Entry → New:
- Entry Type — Journal Entry (default), Bank Entry, Cash Entry, Credit Card Entry, etc. The type pre-selects sensible defaults.
- Posting Date — when the booking belongs to (often last day of period for adjustments)
- Accounts table — add rows:
- Account
- Debit or Credit amount
- Party (if Receivable / Payable account)
- Cost Center (optional)
- Reference (optional)
The total debits must equal total credits — ERPNext won't let you submit otherwise.
Example: accrue €5,000 wages at month end
| Account | Debit | Credit |
|---|---|---|
| Wages Expense | 5,000.00 | |
| Wages Payable | 5,000.00 |
Submit. Reverse it on the 1st of next month (or use a reversing-entry pattern) when the actual payroll runs.
Example: bank fee €15
| Account | Debit | Credit |
|---|---|---|
| Bank Charges | 15.00 | |
| Bank Account | 15.00 |
Multi-currency
If the Journal Entry involves a non-EUR account, set the Exchange Rate. ERPNext computes the EUR equivalents and posts in both.
Templates
For recurring entries (monthly depreciation, monthly accruals), save a Journal Entry as a Template — duplicate next month, change the date, submit. Avoids re-keying.
Status
Draft → Submitted → Cancelled. Submitted entries can't be edited — Cancel and Amend.
Common situations
- Wrong account picked — Cancel, Amend, fix, resubmit
- Need to attach supporting docs — attach PDFs or photos to the Journal Entry (bank confirmation, invoice scan)
- Period closed — once a fiscal period is closed (Year-End Closing), you can't post new entries in it. Adjust in the open period and note in the entry.