Overview

Journal Entries are the most flexible way of recording financial transactions in Fr8Labs. They allow you to post debits and credits directly to your Chart of Accounts, outside of predefined forms like invoices or payment entries.

Journal Entries are typically used for:

• Adjustments (e.g., accruals, prepayments, reallocations)

• Corrections (fixing misposted entries)

• Internal transfers between accounts (e.g., inter-branch movements)

• Year-end closing entries

• Complex payments/receipts that can’t be handled with Payment Entry

Journal Entry List View

Accessing Journal Entries

1. Go to Accounting Module → Journal Entry.

2. The list view displays:

   • Entry Type

   • Posting Date

   • Reference

   • Total Debit and Credit amounts

   • Status (Draft, Submitted, Cancelled)

Accessing Journal Entry

Creating a Journal Entry

1. Click + New Journal Entry.

2. Fill in the top-level details:

   • Entry Type – e.g., Adjustment, Bank Entry, Contra, Opening Entry.

   • Posting Date – effective date of the entry.

   • Company – select the relevant entity if multi-company.

   • User Remark – short description of the transaction.

3. In the Accounts Table, add one or more lines:

   • Account – ledger account to debit or credit.

   • Debit / Credit Amount – enter values ensuring total debits = total credits.

   • Party Type / Party (if applicable) – link to a customer or supplier.

   • Cost Center / Dimension – assign if you are tracking profit & loss by branch or department.

4. (Optional) Add Reference Document (e.g., invoice number, note) for audit trail.

5. Save and Submit.

New Journal Entry Form

Example Use Cases

• Accruals

  • Debit: Expense Account

  • Credit: Accrued Liabilities

• Prepayments

  • Debit: Prepaid Expenses (Asset)

  • Credit: Bank

• Inter-Company / Branch Transfer

  • Debit: Intercompany Receivable

  • Credit: Intercompany Payable

• Manual Depreciation Adjustment

  • Debit: Depreciation Expense

  • Credit: Accumulated Depreciation

Example Journal Entry with Accounts Table

Accounting Impact

When submitted, a Journal Entry updates the General Ledger instantly.

• Debited accounts increase asset/expense balances.

• Credited accounts increase liability/equity/income balances.

General Ledger Reports

Key Points to Remember

• Debit = Credit is required to submit.

• Journal Entries are powerful—limit access to finance team only.

• Use descriptive User Remarks for clarity in reporting and audit.

• If making an inter-company entry, ensure both company accounts are properly set.

• Cancelled Journal Entries are automatically reversed in the ledger.

Documentation owner: Fr8Labs Customer Success. Text reviewed: 21 September 2026.