Journal Entries
Journal entries are part of DiverDash's Internal Transactions system, allowing you to make manual adjustments to your dive center's accounts for transactions that don't fit standard business workflows. Use internal transactions for corrections, adjustments, depreciation, and other accounting entries that maintain accurate financial records.
What You'll Learn
When and why to use journal entries in dive center accounting
How to create and manage manual journal entries
Understanding debits and credits for proper account adjustments
How to troubleshoot and correct accounting errors using journal entries
Best practices for maintaining audit trails and documentation
Before You Start
Make sure you have:
Finance access permissions to view transaction details
Strong understanding of Chart of Accounts and account types
Knowledge of double-entry accounting principles
Documentation for the adjustment or correction being made
Understanding of your dive center's accounting policies
Understanding Journal Entries
What are Journal Entries?
Journal entries are manual accounting records that adjust account balances outside of normal business transactions. They ensure your books accurately reflect your dive center's financial position when standard transaction processing isn't sufficient.
When to Use Journal Entries
Common scenarios for dive centers:
Depreciation entries: Monthly equipment depreciation
Accrual adjustments: Recording earned revenue or incurred expenses
Error corrections: Fixing misclassified transactions
Year-end adjustments: Closing entries and adjustments
Inventory adjustments: Physical count reconciliations
Bank adjustments: Interest, fees, or foreign exchange
Allocation entries: Distributing costs across departments
Journal Entry Components
Every journal entry must include:
Date: The accounting date for the entry
Description: Clear explanation of the adjustment
Reference: Supporting document or reason code
Account Debits: Accounts being increased (assets/expenses) or decreased (liabilities/income)
Account Credits: Accounts being decreased (assets/expenses) or increased (liabilities/income)
Balanced Total: Total debits must equal total credits
Accessing Journal Entries
Step 1: Navigate to Internal Transactions
Go to Finance > Transactions in the main menu
Click New Transaction button
Select General as the transaction type for journal entries
The system will guide you with smart account filtering
Step 2: Understanding the Internal Transaction View
Transaction List Columns:
Date: Transaction date
Description: Brief description of the transaction
Reference: Document number or source reference
Transaction Type: Type of internal operation
Amount: Transaction amount
Status: Active or voided
Filter Options:
Date Range: View transactions for specific periods
Status Filter: Active or voided transactions
Transaction Type Filter: General, Transfer, Refund, or Adjustment
Amount Range: Filter by transaction amounts
Account Filter: Transactions affecting specific accounts
Creating Journal Entries
Step 1: Create New Journal Entry
Click New Transaction button
Select General as the transaction type
The internal transaction form opens with smart account filtering
Begin entering the required information
Step 2: Enter Basic Information
Entry Details:
Date: Select the accounting date (typically today or period-end)
Transaction Type: Choose "General" for journal entries
Description: Write a clear explanation of the adjustment
Reference: Enter a meaningful reference code (e.g., "DEP-202401", "ADJ-001")
Memo/Notes: Add detailed explanation for audit purposes
Step 3: Add Account Lines
For each account affected:
Account: Select from Chart of Accounts dropdown (smart filtering applies)
Description: Specific description for this line (optional)
Type: Choose "Debit" or "Credit"
Amount: Enter the amount for this line
Repeat for all affected accounts
Smart Balance Features:
Auto-Balance: Automatically adds balancing entries
Smart Balance Assistant: Suggests appropriate debit/credit types
Visual Balance Indicator: Shows real-time balance status
Account Type Guidance: System suggests appropriate debit/credit based on account type
Step 4: Verify and Balance
Check your entry:
Total Debits = Total Credits: Entry must balance
Account Logic: Verify debit/credit makes sense for account type
Amounts: Confirm all amounts are correct
Descriptions: Ensure clear documentation
Step 5: Save Transaction
Save Transaction: Finalize and apply to account balances immediately
Common Journal Entry Examples
Equipment Depreciation Entry
Monthly depreciation of dive equipment:
Accrued Revenue Entry
Recording earned but unbilled course revenue:
Error Correction Entry
Correcting misclassified expense:
Bank Fee Entry
Recording monthly bank charges:
Inventory Adjustment Entry
Adjusting retail inventory after physical count:
Managing Journal Entries
Editing Transactions
For active transactions only:
Select the transaction from the list
Click Edit button
Modify account lines, amounts, or descriptions
Save changes
Transaction Status Management
Transaction Statuses:
Active: Recently created and posted
Voided: Cancelled transactions (if immutable ledger is disabled)
To void a transaction:
Open the transaction details
Click Void Transaction button
Confirm the void action
Smart Balance Features
Auto-Balance Button:
Automatically adds balancing entries when transactions are unbalanced
Creates suspense account entries for quick balancing
Maintains proper double-entry bookkeeping
Smart Balance Assistant:
Auto Mode: Automatically populates balancing entries as you type
Manual Mode: Provides suggestions without auto-populating fields
Account Suggestions: System suggests debit/credit based on account type
Visual Indicators: Recently modified fields are highlighted
Journal Entry Reports
Transaction List View
View all internal transactions:
Go to Finance > Transactions
Use filters to find specific journal entries
Export data as needed
General Ledger Impact
See how entries affect accounts:
Go to Finance > Accounts > General Ledger
Journal entries appear with transaction details
Review account balance changes
Audit Trail
Track transaction history:
Transaction creation and modification dates
User who created transactions
Status changes and voiding
Complete documentation trail
Best Practices
Documentation Standards
Reference Numbers:
Use consistent naming conventions (DEP-YYYYMM, ADJ-NNN)
Include date references where helpful
Make references searchable and meaningful
Descriptions:
Write clear, specific descriptions
Include supporting document references
Explain the business reason for the adjustment
Use consistent terminology
Supporting Documentation:
Include detailed notes in the memo field
Reference external documents (invoices, statements)
Maintain physical files for audit purposes
Review and Approval Process
Before Saving:
Verify calculations and account assignments
Confirm compliance with accounting policies
Check for proper supporting documentation
Ensure transaction balances properly
Regular Review:
Review all journal entries monthly
Look for unusual or unexpected entries
Verify recurring entries are still appropriate
Update depreciation schedules quarterly
Account Management
Chart of Accounts:
Ensure proper accounts exist before creating entries
Use specific accounts rather than general categories
Maintain consistent account usage
Review account classifications periodically
Balance Verification:
Always verify entries balance before saving
Double-check debit/credit logic for account types
Confirm amounts match supporting calculations
Review impact on financial statement presentation
Troubleshooting Journal Entries
Common Issues
Entry Won't Balance:
Check that total debits equal total credits
Verify all amounts are entered correctly
Ensure no missing account lines
Use the Auto-Balance button for assistance
Wrong Account Assignment:
Review Chart of Accounts for correct account
Check similar account names for selection errors
Verify account type matches debit/credit intention
Consider if new accounts are needed
Can't Edit Posted Entry:
Create a new correcting journal entry
Document the correction process in entry notes
Review approval process to prevent future errors
Getting Help
Need assistance with journal entries?
Review Chart of Accounts structure
Consult Internal Transactions for standard processing
Check Financial Reports for impact analysis
Contact your accountant for complex adjustments
Reach out to support for system functionality issues
Integration with Financial Reports
Financial Statement Impact
Journal entries immediately affect:
Balance Sheet: Asset, liability, and equity account balances
Income Statement: Revenue and expense account totals
General Ledger: Individual account transaction history
Trial Balance: Account balance summaries
Period-End Processing
Month-End Entries:
Depreciation and amortization
Accrued revenues and expenses
Prepaid expense adjustments
Inventory valuations
Year-End Entries:
Closing entries for income and expense accounts
Tax provision adjustments
Audit adjustments
Prior year corrections
Advanced Features
Multi-Currency Support
When enabled:
Select currency for journal entries
Enter exchange rates for foreign currency transactions
System converts to home currency for reporting
Tax Configuration
Tax-enabled features:
Mark line items as taxable or non-taxable
Select appropriate tax rates
Automatic tax calculations and allocations
Dimensions and Tags
Enhanced categorization:
Add dimensional tracking to line items
Tag transactions for better organization
Enhanced reporting and analysis capabilities
Journal entries are a powerful tool for maintaining accurate financial records. Use them carefully with proper documentation and review procedures to ensure your dive center's books reflect its true financial position.
Last updated