Journal Entries

A journal entry records a transaction directly in your accounts. Use it for transactions that are not a sale or a purchase, such as a transfer from a bank account to the cash account.

Only a Books Manager or a System Manager can open journal entries. For more information, see Roles and Permissions.

Create a Journal Entry

1. Click Common > Journal Entry in the sidebar.
2. Click New.
3. Select the Entry Type.
4. Make sure that the Date is correct.
5. In Account Entries, add one row for each account.
6. In each row, select the Account and enter the Debit or the Credit amount.
7. Click Save.
8. Click Submit and click Yes.

The Account list shows only ledger accounts. To add an account, see Create a New Account. The optional Reference Number and Reference Date in the References section are for an outside document, such as a check.

Rules for a Journal Entry

• Each row has a debit or a credit, but not both.
• The amounts are not negative.
• The total of the debits is equal to the total of the credits.

If the entry does not obey a rule, Frappe Books shows an error and does not save the entry.

Entry Types

The entry type tells what kind of transaction the entry records. It does not change the ledger entries. Some common types:

The other types are Journal Entry, Credit Card Entry, Debit Note, Credit Note, and Excise Entry.

Cancel or Delete a Journal Entry

You cannot edit a submitted entry. When you cancel an entry, Frappe Books reverses its ledger entries. To make a corrected entry, open the cancelled entry and click Create > Duplicate. A copy opens as a new draft.

You can delete a draft entry or a cancelled entry. When you delete a cancelled entry, Frappe Books also deletes its ledger entries and their reversals. You cannot undo a delete.

Examples

Transfer Money from a Bank Account to Cash

You take ₹10,000 from your bank account as cash. Use the entry type Contra Entry:

Record a Prepayment

A customer pays ₹5,000 for a product that you did not deliver yet. This amount is a liability until you deliver. First, add a liability account, such as Prepayments, below Current Liabilities. Then add these rows: