About Digits

This document provides a comprehensive overview of what journal entries are and offers step-by-step instructions on how to create and edit them. Mastering journal entries ensures accurate financial statements and a clear view of your business's financial health.

What is a Journal Entry?

A journal entry is a fundamental component of accounting that records all business transactions in a company's financial records. Each entry is meticulously crafted to reflect a transaction's effect on the various accounts within an organization's ledger. This typically includes accounts related to assets, liabilities, equity, revenue, and expenses. Journal entries consist of a date, accounts affected, debits and credits, and a brief description or memo that provides context. By maintaining accurate journal entries, businesses ensure their financial statements are reliable and reflective of their true financial position. They are essential for tracking financial activity, preparing for audits, and making informed business decisions.

How to Add a Journal Entry

Adding a Journal Entry to your ledger is simple. Follow these steps to add a Journal Entry:

1. From your home dashboard, navigate to the Transactions Tab.
2. In the Transactions tab, click New Transaction located in the top right-hand corner.
3. Choose Journal.
4. Enter Journal Details:
   • Select the Journal date and add a memo for clarity.
   • Provide the following details:
     • Category
       Must be selected on every line
       
     • Debit Amount
       This must equal the credit amount.
       
     • Credit Amount 
     • Description (Optional)
       
     • Party (Optional)
     • Reference No. (Optional)
       While this is optional, this is most useful for invoice numbers.
     • You can add additional lines for this entry if needed, but two lines must be entered at a minimum.

5. Once all necessary information is filled out for your transaction, click on Save & Close in the top right-hand corner to finalize and add your Journal Entry. Alternatively, open up the dropdown and click "Save" if you still want to stay on this transaction or "Save and New" if you would like to add another transaction right away.

How to Import Journal Entries

Importing journal entries into your system is a straightforward process. Follow these steps to ensure your entries are imported correctly:

1. From your home dashboard, go to the Transactions tab located in the left-hand toolbar.
2. Within the Transactions tab, click the dropdown arrow next to New Transaction at the top right-hand corner of the page.
3. From the dropdown menu, choose Import Journal Entries.
4. In the pop-up window, either select your file or drag and drop it for import. Ensure you use the CSV template provided to ensure the journal entries are imported correctly.
5. Click Next to begin importing your journal entries.

Editing Journal Entries

Editing Journal Entries allows for adjustments to ensure your financial records accurately reflect your business activities. Here's what you need to know before making edits:

• Transactions, including Journal Entries, imported from QuickBooks Online(QBO) are not editable.
• You can only update the party and the category of a Journal Entry.
• Category updates are limited to profit and loss categories such as income, other income, expenses, other expenses, and cost of goods sold.
• When changing categories, ensure that the new category remains the same root type (e.g., income to income, expenses to expenses).
• You are allowed to create new parties as needed.

How to Edit a Journal Entry:

1. From your home dashboard, navigate to the Transactions tab.
2. Use filters to locate your Journal Entry by party or amount.
3. Once you find the desired transaction, click on it to open the edit options.
4. You can update the party associated with the Journal Entry and modify the category it belongs to, within the allowed parameters.

For detailed guidance on what can and cannot be edited, please refer to the accompanying chart that highlights these specifics. The header of this chart references to the source of the transaction (imported from Connections vs Manually Created, imported from Digits Pay Etc.).

	Connect	CSV Upload	Digits Pay	Manual	QBO
Date	❌	✅	✅	✅	❌
Memo	❌	✅	✅	✅	❌
Amount	❌	✅	✅	✅	❌
Party	✅	✅	✅	✅	❌
Category	✅	✅	✅	✅	❌
Description	❌	✅	✅	✅	❌
Add Line Item	❌	✅	✅	✅	❌
Remove Line Item	❌	✅	✅	✅	❌
Reference No.	✅	✅	✅	✅	❌
Delete	Only CSV & Manual Transactions can be deleted

Bulk Editing

1. From the Transactions Tab, hover over a transaction row and a checkbox will appear.
2. Select one or more transactions to perform bulk edits.
   You can also select all transactions for a given category to apply bulk updates.
3. Once you have your selection, select the changes in the header you'd like to edit. You can edit the following in bulk edits:
   • Category
   • Party
4. Click Apply Edits.

If you require additional support or have any questions, please don't hesitate to reach out to us through our contact form. Our team is here to assist you with any concerns or further guidance you may need.