You can create adjusting journal entries for a variety of reasons, including booking depreciation or amortization, reallocating accruals and reversing accruals of prepaid income or expenses, adjusting tax payable for interest, discounts, or penalties, and entering bank or credit card fees or interest.
To make an adjusting journal entry:
- Go to your client's company.
- Click Create (+) > Journal Entry.
- Select the Is Adjusting Journal Entry? checkbox.
View adjusting journal entries in reports
You can view adjusting journal entries in the following reports:
- Adjusting Journal Entries
- Adjusted Trial Balance
You can also turn on an Adj column in the following reports:
- Journal (accountant users see the Adj column by default)
- Transaction Detail by Account (accountant users see the Adj column by default)
- Transaction List by Date
- Transaction List with Splits
- Recent Transactions
- General Ledger