How to create a journal entry

What is a journal entry?

A journal entry is a record in Farm Focus for financial movements that do not have a corresponding bank transaction.

Journal entries typically include at least two coding lines—one for an expense and one for income—both totalling $0.00.

You can use journal entries for:

• Claiming GST on farm expenses paid from a personal bank account or credit card, where you are not reimbursing yourself from the farm account.

• Claiming GST on hire purchase items that are fully financed, with no deposit paid.

• Correcting coding errors for transactions included in a GST return (Australian businesses only).

  • NZ businesses use a late GST claim. Learn more.

How to create a journal entry

1. In the Needs Action tab, go to the Invoice side and create a new Money In or Money Out invoice. 

2. Leave the Amount in the invoice header as $0.00, as no funds have moved through the farm account.

3. Add the necessary coding lines to build your journal entry & use  the Description field to provide a clear note.

4. Ensure the Total equals $0.00 & Click Save—the invoice will move to the Completed tab.  

How does this affect my bank balance?

• A journal entry does not impact the bank balance since the total transaction is $0.00.

• This invoice should not be matched to a bank transaction, as no transaction exists.

• The balance in the Actuals screen will continue to reconcile with your bank account.

Understanding journal entry details

Due Date

• If your GST basis is Payments, the Due Date determines the GST period the journal appears in.

• If your GST basis is Invoice, the Invoice Date determines the GST period the journal appears in.

Other Party and Reference

• These details appear in reports such as the Accountant Annual and Analysis by Code.

A/C (Bank Account)

• The journal entry will appear in the Working Plan and reports but will not affect the cash balance for the bank account.

Amount

• The total remains $0.00 as no bank transaction has occurred.