Add an adjusting transaction

Adding an adjusting entry transaction

Adjusting entry transactions, commonly known as journal entries, are used to adjust account balances and fix any accounting issues. Show examples

Make an adjusting entry to fix any account issues. Here are some examples:

enter payroll adjustments
adjust Sales Tax Payable for interest, penalties, or discounts
enter depreciation
make end-of-year accounting adjustments

Warning: If you have no experience creating adjusting entries or are at all unsure about them, please ask your accountant or financial adviser for help. By adjusting certain accounts (particularly protected accounts, like Cost of Goods Sold), using the adjusting entry form instead of account specific forms (like the inventory adjustment form), the account balances will be updated but reporting may be compromised. Example

For example, if you adjust the Cost of Goods Sold account manually using the Adjusting Entry form, the value of the adjustment will not be included in the Schedule C report.

To add an adjusting transaction:

Open the General Journal. Show me how

In the sidebar, click Record Adjusting Transaction.

(Optional) Enter a reference number for the entry.

The number appears in the transaction/entry description and is helpful when trying to locate a specific transaction/entry.

In the Account field, choose the account for the first distribution amount.

In the Debit field, if you are debiting the account selected, enter the amount in the Debit column.

In the Credit field, if you are crediting the account selected, enter the amount in the Credit column.

WorkingPoint displays running totals at the bottom of each column as you enter credit and debit amounts.

(Optional) In the Contact field, enter the customer name, vendor, or other name associated with the amount.

(Optional) In the Notes field for an entry, add a note for the particular entry to explain the adjustment. (You can add a memo for the entire transaction in the Transaction Memo field.)

Continue selecting accounts to debit and credit until the transaction difference total reaches a zero balance (the total in the Debit column equals the total in the Credit column). Click Add Line if you need to use more accounts.

(Optional) In the Transaction memo field, add a memo for the entire transaction.

Click Save Transaction.

If the Save Transaction button is not active, make sure that:

All entered debits and credits have an account selected

At least one debit and one credit have been entered

Debits and credits are balanced

Note: The transaction difference must have a zero balance (the total in the Debit column equals the total in the Credit column). You can't save the entry until the credits and debits are equal.

Adding an adjusting entry transaction

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