Specifying the Customer or Supplier and Recording Debit and Credit Accounts in Manual Journal Entries

Guidelines for identifying customers or suppliers when creating manual journal entries in the system.

Answer:

When creating a manual journal entry, make sure to select the Accounts Receivable account in the account field.

1. After selecting the Accounts Receivable account, a field will appear directly next to it to enter the entity name (customer). Similarly, when selecting the Accounts Payable account, a field will appear directly next to it to enter the entity name (supplier).

2. Select the required customer or supplier from the dropdown list.

Note:

• You must select the entity (customer/supplier name) to be able to save the journal entry successfully. If there is no specific customer, you can add a customer named “Miscellaneous Customers” in the customer list or “Miscellaneous Suppliers” and assign the journal entry to it.

• When recording a manual journal entry, it is important to know when a customer or supplier is a debtor or creditor to record the entry correctly.

  Customers

  • The customer is a creditor

    • If they paid you an amount or you have a right to collect from them.

    • Example: A credit sale to the customer, and they owe a later payment.

  • The customer is a debtor

    • If you paid the customer or there is an obligation on you toward them.

    • Example: Advances paid to the customer or a refund to them.

  Suppliers

  • The supplier is a debtor

    • If you paid the supplier an amount or settled an invoice.

    • Example: Paying a purchase invoice to a supplier.

  • The supplier is a creditor

    • If you recovered an amount from the supplier.

    • Example: Debit note and return of purchase invoice.

  • Keywords for inquiry:
    When recording a daily journal entry, supplier and customer accounts do not appear for me