Create a Journal Entry

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Sometimes you may need to make a journal entry that affects specific general ledger accounts. CosmoLex has a journal entry feature that allows you to create journal entries when needed.

Caution

The system will not permit you to use the journal entry function to make journal entries to the following general ledger accounts:

Bank and Credit Card Accounts listed on the Accounting > Bank screen (Follow the steps below)
1200 Accounts Receivable 2100 Accounts Payable
2300 Client Trust Funds 2310 Client General Retainer (Trust)
2320 Client General Retainer (Operating)
3500 Income and Expense Summary
6610 Reimbursable Client Costs (Direct)
21101 Transaction Levy or Trust Admin Fee (Canada)

Creating a Journal Entry

To create a journal entry in CosmoLex:

From the left navigation panel, click Accounting.
From the Accounting left navigation, click Journal Entries.
From the toolbar above the Journal Entries screen, click Add.

Complete the fields on the Add Journal Entry screen.

Add Journal Entry Screen Field Descriptions

Entry #	Enter a name or number for future reference.
Date	From the drop-down, enter the date on which you want the system to make the general ledger entries.
Account	From the drop-down, click the first GL account to be added.
Credit or Debit	Enter the credit or debit amount.
Payee	Enter the payee name if desired.
Memo	Enter the memo if desired. Entries in the memo field will appear on the general ledger report.

Repeat screen field entries for each line item that makes up your journal entry.
In the lower right corner, click Save.

Important

In order to save the journal entry, the total amount entered in the Debit column must equal the total amount entered in the Credit column.

Making a Journal Entry into a Bank or Credit Card Account

Note

You cannot use the Accounting > Journal Entry function to make a journal entry to a bank or credit card account. Instead you have to make the journal entries from within the banking transaction screen.

Warning

You are not permitted to make journal entries to trust bank accounts at all.

Making a Journal Entry to a Bank Account

From the left navigation panel, click Accounting.
From the Accounting left navigation, click Banking.
From the list of banks and credit cards on the Bank screen, select the bank account and double-click.
From the toolbar on the Add Transaction screen, click Add.
From the drop-down choose Deposit or Withdrawal.
- Select Withdrawal if you want to credit the bank account GL.
- Select Deposit if you want to debit the bank account GL.
On the Add Transaction pop-up, enter the amount of the credit or debit to the bank account.
In Split put the accounts and amounts for the offsetting entries.

Making a Journal Entry to a Credit Card Account

From the left navigation panel, click Accounting.
From the Accounting left navigation, click Banking.
From the list of banks and credit cards on the Bank screen, select the credit card account and double-click.
From the toolbar on the Add Transaction screen, click Add.
From the drop-down choose Payment or Charge.
- Select Charge if you want to credit the credit card account.
- Select Payment if you want to debit the credit card account.
On the Add Transaction pop-up, enter the amount of the credit or debit to the credit card account.
In Split put the accounts and amounts for the offsetting entries.

Updated on November 11, 2022

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