What is a journal entry?
A journal entry is a record in Farm Focus for which there isn't a corresponding transaction in your bank account.
It generally contains at least two lines; an expense and an income line that both total to $0.00.
Journal entries are created for:
Correcting coding mistakes for transactions that have been included in a GST return
Claiming GST for farm expenses that were paid for from your personal bank account/credit card and where you're not reimbursing yourself from the farm account
Claiming GST on hire purchase items that are 100% financed so no deposit has been paid
How to create a journal entry
On the Invoice side of Needs Action, create a new Money In or Money Out invoice.
Leave the Amount in the invoice header as a $0.00 value as funds haven't moved through the farm account.
Create as many coding lines as you need to build the journal entry and use the Description field to make a clear note.
If the journal has been entered correctly, the Total should equal $0.00. Click Save and this invoice will move to the Completed tab.
What does this do to my bank balances?
Because the total transaction equals $0.00 this won't affect the bank balance.
You do not match this invoice to a bank transaction as there isn't one.
For the same reason, the balance in the Actuals screen should also continue to reconcile to your bank account.
More information about journal details
If you're on Payments basis GST, the Due Date determines the GST period the journal will appear in.
If you're on Invoice basis GST, the Invoice Date determines the GST period the journal will appear in.
Other Party and Reference
This information is displayed in reports such as the Accountants Annual and the Analysis by Code
A/C (Bank Account)
Though the item will appear in the working plan and reports, it won't distort the cash balance for the bank account.
$0.00 as nothing has actually happened in the bank account.