Journal Entry
Overview
Journal Entry — Business Overview
Journal Entry is a core financial document in Dafater used to record accounting transactions that do not originate automatically from day‑to‑day sales, purchases, or payments. It allows finance teams to manually record, adjust, or correct financial movements to ensure the company’s books accurately reflect reality.
What Journal Entry Is Used For
In business operations, Journal Entry is used to:
- Record financial transactions that are not captured through invoices, bills, or receipts
- Adjust account balances at month‑end or year‑end
- Correct errors in previously recorded transactions
- Allocate costs or revenues across departments, projects, or periods
- Record accruals, provisions, and depreciation
In simple terms, Journal Entry is the tool that keeps financial records complete, balanced, and compliant.
Prerequisites Before Using Journal Entry
Before creating Journal Entry records, the following should be in place in Dafater:
- A clearly defined Chart of Accounts (assets, liabilities, income, and expenses)
- Properly set up company and accounting periods
- Assigned user roles and approvals for financial postings
- Understanding of internal accounting policies and approval limits
These prerequisites ensure that Journal Entry records are accurate, controlled, and auditable.
Typical Workflow and Business Process Fit
The usual business flow for Journal Entry is:
Identify the financial need
For example, an adjustment, correction, or allocation is required.Prepare the Journal Entry
The finance team selects the relevant accounts and enters debit and credit amounts so totals balance.Review and Approval
A supervisor or finance manager reviews the Journal Entry for accuracy and compliance.Posting to Accounts
Once approved, the Journal Entry updates account balances and appears in financial reports.Reporting and Audit Use
Journal Entry records support financial statements, audits, and management analysis.
Journal Entry typically fits into month‑end closing, year‑end closing, and internal financial control processes.
Key Business Scenarios Where Journal Entry Is Essential
Journal Entry is commonly used in the following situations:
Expense Accruals
Recording expenses incurred but not yet invoiced (e.g., utilities, salaries).Revenue Accruals or Deferrals
Recognizing income in the correct accounting period.Depreciation and Amortization
Spreading the cost of assets over their useful life.Error Corrections
Fixing incorrect postings from earlier transactions.Inter‑department or Inter‑branch Allocations
Distributing shared costs across teams or locations.Opening Balance Adjustments
When starting a new financial year or migrating data.
Important Considerations for Users
- Accuracy is critical: Incorrect Journal Entry postings directly affect financial statements.
- Always balance debits and credits: Every Journal Entry must balance to maintain accounting integrity.
- Use clear descriptions: Proper explanations help during audits and reviews.
- Follow approval controls: Journal Entry should be reviewed to prevent misuse or fraud.
- Avoid overuse: Routine transactions should flow through standard processes; Journal Entry is for exceptions and adjustments.
In Summary
Journal Entry in Dafater is an essential financial control document that ensures accurate accounting, supports compliance, and enables reliable financial reporting. Used correctly, it strengthens transparency, governance, and confidence in the organization’s financial data.
Basic Information
- Module: Accounts
- Document Type: Document
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| issystemgenerated | Is System Generated | Check | - | Indicates whether the journal entry was automatically created by Dafater | |
| title | Title | Data | - | Short title describing the purpose of this journal entry | |
| voucher_type | Entry Type | Select | ✓ | Journal Entry, Inter Company Journal Entry, Ban... | Defines the business purpose and accounting treatment of the entry |
| naming_series | Naming Series | Select | ✓ | ACC-JV-.YYYY.- | Controls automatic numbering format for journal entries in Dafater |
| loan_transfer | Loan Transfer | Link | Loan Transfer | Links this entry to a specific loan transfer transaction | |
| loan | Loan | Link | Loan | References the related loan impacted by this journal entry | |
| posting_date | Posting Date | Date | ✓ | - | Date on which the accounting impact is recorded in Dafater |
| finance_book | Finance Book | Link | Finance Book | Specifies the finance book used for parallel accounting | |
| processdeferredaccounting | Process Deferred Accounting | Link | Process Deferred Accounting | Links deferred revenue or expense processing reference | |
| reversal_of | Reversal Of | Link | Journal Entry | Identifies the original journal entry being reversed | |
| taxwithholdingcategory | Tax Withholding Category | Link | Tax Withholding Category | Defines applicable tax withholding rules for this entry | |
| from_template | From Template | Link | Journal Entry Template | Indicates the journal entry template used to create this entry | |
| company | Company | Link | ✓ | Company | Company to which this journal entry belongs |
| apply_tds | Apply Tax Withholding Amount | Check | - | Applies tax withholding calculation on this journal entry | |
| customentrydescription | Entry Description | Small Text | - | Detailed business explanation for the journal entry | |
| accounts | Accounting Entries | Table | ✓ | Journal Entry Account | Lists debit and credit account lines for this entry |
| total_debit | Total Debit | Currency | Company:company:default_currency | Sum of all debit amounts in the journal entry | |
| total_credit | Total Credit | Currency | Company:company:default_currency | Sum of all credit amounts in the journal entry | |
| difference | Difference (Dr - Cr) | Currency | Company:company:default_currency | Shows imbalance between total debit and total credit | |
| get_balance | Make Difference Entry | Button | - | Automatically creates adjustment entry to balance debits and credits | |
| multi_currency | Multi Currency | Check | - | Indicates whether multiple currencies are used in this entry | |
| totalamountcurrency | Total Amount Currency | Link | Currency | Currency used for displaying the total transaction amount | |
| total_amount | Total Amount | Currency | totalamountcurrency | Total transaction amount in the selected currency | |
| totalamountin_words | Total Amount in Words | Small Text | - | Total amount written in words for documentation | |
| cheque_no | Reference Number | Data | - | Reference number such as cheque or transaction identifier | |
| cheque_date | Reference Date | Date | - | Date of the referenced cheque or transaction | |
| user_remark | User Remark | Small Text | - | Internal notes added by the user for reference | |
| clearance_date | Clearance Date | Date | - | Date when the payment or receipt is cleared | |
| remark | Remark | Small Text | - | Additional remarks for audit or business context | |
| paid_loan | Paid Loan | Data | - | Identifier of the loan that has been paid | |
| intercompanyjournalentryreference | Inter Company Journal Entry Reference | Link | Journal Entry | References the related inter-company journal entry | |
| bill_no | Bill No | Data | - | Supplier or customer bill reference number | |
| bill_date | Bill Date | Date | - | Date mentioned on the supplier or customer bill | |
| due_date | Due Date | Date | - | Date by which the payment is due | |
| writeoffbased_on | Write Off Based On | Select | Accounts Receivable, Accounts Payable | Basis for write-off selection between receivables or payables | |
| getoutstandinginvoices | Get Outstanding Invoices | Button | getoutstandinginvoices | Fetches outstanding invoices for write-off or adjustment | |
| writeoffamount | Write Off Amount | Currency | Company:company:default_currency | Amount being written off in this journal entry | |
| paytorecd_from | Pay To / Recd From | Data | - | Specifies the party paid to or received from | |
| letter_head | Letter Head | Link | Letter Head | Letterhead used when printing the journal entry | |
| selectprintheading | Print Heading | Link | Print Heading | Heading displayed on printed journal entry documents | |
| modeofpayment | Mode of Payment | Link | Mode of Payment | Specifies the payment method used for this entry | |
| payment_order | Payment Order | Link | Payment Order | Links the journal entry to a payment order | |
| is_opening | Is Opening | Select | No, Yes | Marks this entry as an opening balance entry | |
| stock_entry | Stock Entry | Link | Stock Entry | References related stock entry impacting accounts | |
| auto_repeat | Auto Repeat | Link | Auto Repeat | Links to auto-repeat schedule for recurring entries | |
| amended_from | Amended From | Link | Journal Entry | References the original journal entry being amended |
Child Tables
Accounting Entries (Journal Entry Account)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| account | Account | Link | ✓ | Account | Ledger account impacted by this journal entry line. |
| account_type | Account Type | Data | - | Classification of the selected account for reporting purposes. | |
| bank_account | Bank Account | Link | Bank Account | Specific bank account used when posting bank-related transactions. | |
| party_type | Party Type | Link | DocType | Type of party linked, such as Customer or Supplier. | |
| party | Party | Dynamic Link | party_type | Specific party associated with this journal entry line. | |
| cost_center | Cost Center | Link | Cost Center | Cost center to allocate this entry for management accounting. | |
| project | Project | Link | Project | Project against which this journal entry amount is tracked. | |
| account_currency | Account Currency | Link | Currency | Currency of the selected account in Dafater. | |
| exchange_rate | Exchange Rate | Float | - | Exchange rate applied between account and company currencies. | |
| debitinaccount_currency | Debit | Currency | account_currency | Debit amount entered in the account’s currency. | |
| debit | Debit in Company Currency | Currency | Company:company:default_currency | Debit amount recorded in the company’s base currency. | |
| creditinaccount_currency | Credit | Currency | account_currency | Credit amount entered in the account’s currency. | |
| credit | Credit in Company Currency | Currency | Company:company:default_currency | Credit amount recorded in the company’s base currency. | |
| reference_type | Reference Type | Select | , Sales Invoice, Purchase Invoice, Journal Entr... | Type of source document linked to this journal entry. | |
| reference_name | Reference Name | Dynamic Link | reference_type | Specific reference document linked for reconciliation and tracking. | |
| referenceduedate | Reference Due Date | Date | - | Due date of the referenced document, if applicable. | |
| referencedetailno | Reference Detail No | Data | - | Additional reference detail number for the linked document. | |
| advancevouchertype | Advance Voucher Type | Link | DocType | Type of advance document adjusted through this entry. | |
| advancevoucherno | Advance Voucher No | Dynamic Link | advancevouchertype | Specific advance voucher adjusted against this journal entry. | |
| is_advance | Is Advance | Select | No, Yes | Indicates whether this journal entry line is an advance. | |
| against_account | Against Account | Text | - | Narrative of counterpart accounts affected by this entry. | |
| user_remark | User Remark | Small Text | - | User-provided remarks for clarification or internal notes. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Accounts User | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Accounts Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Auditor | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Asset | Linked from | Assets |
| Asset Value Adjustment | Linked from | Assets |
| Loan Interest Accrual | Linked from | Loan Management |
| Salary Slip | Linked from | Payroll |
| Stock Entry | Linked from | Stock |
| Auto Repeat | Links to | Automation |
| Company | Links to | Setup |
| Currency | Links to | Geo |
| Finance Book | Links to | Accounts |
| Journal Entry | Links to | Accounts |
| Journal Entry Template | Links to | Accounts |
| Letter Head | Links to | Printing |
| Loan | Links to | Loan Management |
| Loan Transfer | Links to | Loan Management |
| Mode of Payment | Links to | Accounts |
| Payment Order | Links to | Accounts |
| Print Heading | Links to | Setup |
| Process Deferred Accounting | Links to | Accounts |
| Stock Entry | Links to | Stock |
| Tax Withholding Category | Links to | Accounts |