Ambivo Books User Guide
DocsUG-040
Journal Entries and Transactions
Creating manual journals, browsing all transactions, reversing posted entries
Most of what happens in Ambivo Books happens through dedicated workflows — invoices, bills, payments, bank reconciliation. But sometimes you need to step outside those workflows and post a transaction by hand: an adjusting journal entry at month-end, a depreciation accrual, a reclassification between two accounts, a bank-to-bank transfer.
That is what the Journal Entries and Transactions screens are for.
Two Screens, Two Purposes
| Screen | What it does |
|---|---|
| Journal Entries | Create and manage manual journal entries (the type) — the page is filtered to JOURNAL_ENTRY transactions only |
| Transactions | Browse every transaction across every type — invoices, bills, payments, journals, etc. Read-only browsing for the most part |
Use Journal Entries to create new manual entries. Use Transactions to find any transaction across the whole system.
Getting There
- Click Journal Entries in the sidebar to open the journal entries screen
- Click Transactions to browse every transaction
Both items only appear when the accounting module is enabled on your entity. If they are missing, see Setting Up Your Company (UG-003) → Enable Accounting.
When to Create a Journal Entry
Use a journal entry when no other workflow fits:
- Adjusting entries — Accruals, deferrals, depreciation, amortization
- Reclassifications — Moving an amount from one expense account to another after it was originally booked to the wrong place
- Opening balances — When you do not want to use the bulk Trial Balance import
- Period-end provisions — Bad debt, warranty, vacation pay accruals
- Inter-account transfers — Moving money between two of your own bank accounts (also see Contra Entry below)
- Closing or reversing prior entries — Year-end closeouts, reversal of prior accruals at the start of a new period
If you find yourself reaching for a journal entry to record routine activity, there is probably a better-fit workflow — invoice, bill, or payment — already designed for it. Use the dedicated workflow when you can.
Creating a Journal Entry
Steps
- From Journal Entries, click + New
- Enter the Date of the entry
- Optionally enter a Reference number
- Write a Narration (the description that appears on every report) — be specific; "Adjusting entry" is useless six months later
- Add line items — at least two: Pick an Account; Enter the Debit or the Credit amount (one or the other, not both); Optional Line description
- Verify that Total Debits = Total Credits (the form will not let you save otherwise)
- Click Create Entry
The entry is saved as a draft. To make it permanent, open the entry in the list and click Post.
What Happens Next
- Draft — Saved but no ledger impact yet
- Posted — Ledger entries created; balances change immediately
A Worked Example: Depreciation
Say you bought equipment for $12,000 and want to recognize $1,000 of depreciation each month. The journal entry at month-end is:
| Account | Debit | Credit |
|---|---|---|
| Depreciation Expense | $1,000 | |
| Accumulated Depreciation | $1,000 |
Set the date to the last day of the month, narrate "Monthly depreciation — Equipment", and post.
The Income Statement will show $1,000 less profit; the Balance Sheet will show $1,000 less net book value (since Accumulated Depreciation is a contra-asset that offsets Equipment).
Posting
Posting a journal entry is exactly the same one-way door as posting an invoice or bill. Once posted:
- It cannot be edited or deleted
- It can only be neutralized by a new, equal-and-opposite journal entry
- It is included in every report from this date forward
To reverse a posted journal, the workflow today is to create a new journal entry that mirrors the original with debits and credits flipped, narrated as a reversal of the original. A one-click "Reverse" button on the journal detail page is on the roadmap; in the meantime, copy the original's lines into a new entry and swap each line's debit and credit. The original stays in the audit trail; the reversal cancels its effect.
Deleting a Draft
Drafts are free to delete:
- Open the draft
- Click Delete
- Confirm
For posted entries, deletion is not allowed — reverse instead.
Compound vs. Simple Entries
A simple journal has one debit and one credit. A compound journal has more lines (e.g., one debit, two credits — total still equal).
Books supports both. The line-item editor lets you add as many rows as you need; the only rule is total debits = total credits.
Compound entries are useful when one amount needs to be split — for example, allocating an annual insurance prepayment to monthly expense for 12 months in one entry.
Other Transaction Types You Might Encounter
The Transactions browser shows every type. The system tracks twelve transaction types in total; the type filter on the page exposes the ten you are likely to filter by, plus Credit Note and Debit Note for reversal entries:
| Type | Created by |
|---|---|
| Client Invoice | Invoices screen |
| Supplier Bill | Bills screen |
| Client Receipt | Payments / invoice payment / bank match |
| Supplier Payment | Payments / bill payment / bank match |
| Credit Note | Reversal of a Client Invoice (e.g., when an invoice is voided) |
| Debit Note | Reversal of a Supplier Bill (e.g., when a bill is cancelled) |
| Cash Sale | Bank match (Create Expense for income side) |
| Cash Purchase | Bank match (Create Expense) |
| Journal Entry | Journal Entries screen |
| Contra Entry | Bank transfer (between two of your own accounts) |
| Opening Balance | Trial balance import or initial entity setup |
| Closing Balance | Period close |
You will rarely create the last four by hand — they are produced by other workflows. Open Transactions to see them in context if you are auditing a particular account.
The Transactions Browser
The Transactions screen is a read-leaning view across every type. It is most useful when:
- You know an amount or reference but not which screen created the transaction
- You are auditing a specific account and want to see every entry
- You need to find a transaction from a specific date range
Use the filter bar:
- Search — narration, reference
- Type — any of the 10 types
- Status — Posted / Draft
- Date range
Click any row to open the transaction detail, which shows the line items, the resulting ledger entries, and any assignments.
Editing vs. Reversing
The first thing to internalize:
- Drafts can be edited or deleted freely
- Posted transactions can never be edited or deleted — only reversed
Reversal is the audit-correct way to undo a posted entry. The original stays; the reversal cancels its effect; both are visible in the ledger forever.
If you find yourself wanting to "just edit one number" on a posted entry, the answer is always: post a small adjusting journal entry instead.
Common Questions
Why won't Books let me post — it says "out of balance"?
Total debits must exactly equal total credits. Look at your line items and check the math. The form usually highlights which side is short.
Can I copy an existing journal entry?
There is no built-in clone today. The fastest workaround: open the original, screenshot or note down the lines, then create a new entry with those values.
Can I schedule a recurring journal?
Not natively. For monthly accruals (depreciation, prepaid expense allocations), you have to enter them each month. Many accountants set a recurring calendar reminder.
What is the difference between a journal entry and a transaction?
Every journal entry is a transaction (the type is JOURNAL_ENTRY). But not every transaction is a journal — invoices, bills, and payments are also transactions, with different types.
Can I post a journal entry to a closed period?
Books allows it but warns you. If a period is closed for reporting purposes (e.g., financials handed to the auditor), only post into it after a discussion with whoever closed the period. The auditor will need to know.
Where does the "Contra Entry" type come from?
It is the type Books uses for bank-to-bank transfers between two of your own accounts. You typically do not pick it explicitly — it is created automatically when you record an internal transfer.
My journal entry posted to the wrong period
If the date is wrong, reverse it and re-post with the correct date.
Tips and Best Practices
- Write meaningful narrations. "Adjusting entry" is useless. "Q3 vacation accrual reversal" is useful.
- Keep journal entries to the minimum. They are powerful but bypass the controls of dedicated workflows. Use the right tool first; reach for journals only when nothing else fits.
- Include backup, even if it is just a memo line. Future you will thank present you.
- Always check the resulting ledger entries after posting, especially the first time you do an unfamiliar entry. The Transaction detail page shows them.
- Reverse, don't edit. It is the audit-correct path and Books enforces it.
- Schedule a quick review of the Transactions browser at month-end. Anomalies — wrong dates, oversized amounts, unfamiliar accounts — are easier to catch in a list than in isolation.