How To Adjust a Journal Entry In Quickbooks
It’s not uncommon for Quickbooks users to find themselves in a position where they need to adjust one or more journal entries. Even if you originally entered them in accurately, they may require modifying at a later time. But how are you supposed to adjust a journal entry that’s already submitted to your account? Thankfully, this is a rather straightforward process that should only take a couple of minutes to complete.
Instances where you may need to adjust a journal entry:
- Amortization
- Booking depreciation
- Credit card fees
- Reversing accruals
- Prepaid expenses
- Penalties
- Discounts
- Adjusting sales tax payable
- and many more…
These are just a few instances where users may find the need to adjust a previous journal entry. It’s important to note that all journal entries added with Quickbooks Fixed Asset Manager (QFAM) will have the Adjusting Entry checkbox marked by default. If the transaction was marked as an adjusted entry in Premier Accountant edition or higher, however, is will not be selected by default.
Steps To Adjusting a Journal Entry
- Access the Accountant menu.
- Search for the journal entry by locating the closing date.
- Click the checkbox labeled Adjusted Entry next to the appropriate entry.
- Fill in the requested information in the Details area, including transaction amount, memo, name, class and distribution.
- Click Save & Close to complete the changes and close the Accountant menu. If you need to make another change to a journal entry, click Save & New, which will save your changes and allow you to continue editing previous journal entries.
Quickbooks has a built-in features that allows its users to view all adjusted journal entries. If you recently adjust half a dozen or more journal entries, for instance, you may forget exactly which ones were modified, creating a cloud of confusion among anyone who attempts to access the account. This is easily solved, however, by running a report of all adjusted journal entries.
To run a report of your adjusted journal entries, access the Reports menu > Accountant & Taxes > Adjusting Journal Entries. In the date field, enter the range in which the adjusted journal entries took place and click Refresh. Quickbooks will now pull all adjusted journal entries from the respective date range. When the report is finished, you’ll have the option to print them by clicking the Print button.