Journal Entries — Recording Adjustments and Transfers

A Journal Entry is a double-entry bookkeeping record used for transactions that do not fit into invoices, payments, or receipts — such as depreciation, accruals, write-offs, and account transfers.

When to Use Journal Entries

• Depreciation: Monthly depreciation of fixed assets
• Accruals: Recording income earned but not yet received
• Prepaid expenses: Spreading a payment across multiple months
• Write-offs: Writing off irrecoverable bad debts
• Opening balances: Entering opening balances when you start using BillYantra mid-year
• Reclassification: Moving an amount from one expense category to another

How to Create a Journal Entry

1. Go to Accounting → Journal in the sidebar.
2. Click + New Journal Entry.
3. Enter a Date and Reference number (or let it auto-generate).
4. Add journal lines:
   • Debit lines: Accounts being debited (asset/expense increasing)
   • Credit lines: Accounts being credited (liability/income/asset decreasing)
5. The Total Debits must equal Total Credits — BillYantra validates this.
6. Add a Narration (description of why this entry is being made).
7. Click Save.

Example: Writing Off a Bad Debt

Narration: Writing off invoice INV-2024-0078 — customer not contactable.

Example: Monthly Depreciation

Tip: For most small businesses, you will only need journal entries for opening balances and year-end adjustments. Day-to-day transactions should use invoices, purchases, payments, and receipts.