Journal Entries

Journal entries are records of financial transactions in the accounting system. They are used to record every business transaction by showing which accounts are affected and whether they are debited or credited. 

Each journal entry follows the double-entry accounting principle, meaning:

• At least one account is debited. 

• At least one account is credited. 

• Total debit amount must always equal total credit amount. 

Example 

If a company purchases office supplies for cash:

• Debit: Office Supplies Expense 

• Credit: Cash 

This shows that expenses increased and cash decreased. 

Purpose of Journal Entries 

The purpose of journal entries is to record daily financial transactions, adjust or correct accounting records, record depreciation, accruals, and other adjustments, and maintain accurate financial statements. 

Journal entries form the foundation of accounting and are later posted to the ledger to prepare financial reports. 

Location 

if you want to go on journal entries. Click on the navigation bar, and you can see different modules are available below. Click on resources; drop-down sub-sections come in front of the screen. Then go to journal entries. 

Click on Journal Entries. 

A general journal entry is the basic record used to record financial transactions. 

It’s the first step in the accounting process, where every business transaction is recorded using the double-entry system. Every transaction affects at least two accounts, i.e., one debit and the other is credit. 

How We Add Journal Entries 

When you click on journal entries, a new window comes in front of the screen. 

Users can see there is a brief summary available on the front page of General Journals. 

Table Summary 

There is a table consisting of reference no., accounting date, project, recurring, currency, total amount, edit, and delete options. This table shows the basic details of recorded transactions.

Recurring transactions—A recurring transaction is a repeated financial transaction that happens regularly, weekly, monthly, or annually. Without needing to be manually entered each time. 

In simple terms, a transaction that repeats automatically on a set schedule. e.g., salaries, rent, utility bills, etc. 

There is a proper block available to add recurring journal entry information. 

You can see there is a button located on the top right side of the table. i.e., “Add Journal Entry.” 

Click on Add Journal entries. 

A new window comes in front of you. There are some details required in this section. 

• Accounting date—First enter here, which means the date on which the transaction takes place. e.g., 11/01/2025. 

• Enter the project name; this is optional, but you can click and select the project to which this transaction is linked. 

Recurring transaction 

This section shows what the “Recurring Entry” means: the repetition of transactions.

The system automatically added the transaction to the calculation until its time period became the end. 

• Tick the check box only when the transaction is repeatedly recorded. But if it’s not required, then you don’t need to tick the checkbox. 

• Click and select recurring frequency, which means how often the entry should repeat, like daily, weekly, monthly, quarterly, and yearly.

• Enter total occurrence, which means how many times the entry should recur. e.g., 12 times. 

• Recurring Stop Date—In a recurring journal entry, the system also displays the end date of the recurrence. This date shows when the recurring frequency will automatically stop generating new entries. After this specified date, no further journal entries will be created unless the schedule is extended or modified. This helps users clearly understand the duration of the recurring transaction and manage it accordingly. 

Journal Entry table 

Basically, this table ID is used to record financial details here. Debit and credit accounts are involved. 

• Enter the account name as per the accounting category for debit and credit. e.g., office rent, cash, and retained earnings. 

• Enter a brief description related to the entry. e.g., monthly repayment. 

• Enter the amount, which means the value for the transaction. e.g., 1000, etc. 

• Enter credit and debit, according to their account. 

• Add (“+”) or remove (“–”) a row to include more accounts if multiple accounts are involved in the transaction. 

• Click Save. The system records the first entry on 11/01/2025 and automatically creates the next 11 entries each month. 

Description/summary section 

• Enter a short explanation related to the scope of entry. 

• The summary table displays the live summary of accounts entered above, showing total debit and credit. 

• Total debit/total credit/net total: automatically calculated total debit and credit must balance (be equal) before saving. 

• Click on the save button when all information is successfully entered.

• Once you click on the save button, the system records the first entry on 11/01/2025 and automatically creates the next 11 entries each month.
• A new journal entry appears on the front page in the general journal table; by clicking on it you can see the check details of the JV again.

• Users can analyze journal entries by clicking on them. It will show you all the details. 

• If the journal entry is set as a recurring entry, the system will automatically generate a proper payment schedule based on the defined frequency (e.g., monthly, quarterly, yearly). But it will only generate a schedule till the current month. 

• You only need to record or make the payment against each generated entry when it becomes due. 

How You Can Edit Journal 

You can see there is an “Edit Journal” option available, located on the top right side of the details. You can click on edit journal entries, update the changes, and save after it.

In this way, users can analyze the journal entries in capi plan books.