There are 2 types of Journal

  • Payment Journals - Transfer money from one account to another.
  • Transaction Journals - To transfer between different Expense or Purchase Nominals 

Payment Journals can be to transfer between Accounts. For example this may be a transfer from your Current Bank account to a Deposit Bank account, or to correct a mistake. For example: Say you paid a sales invoice as Cash when it was actually paid by Credit card, we could then create a Journal from the Cash In-Hand account to the Cards In-Hand account.

Transaction Journals are for when you want to transfer an amount from between different Purchase or Expense Nominals. For example: You may have entered all purchases from a supplier as Stock Purchases but some of that was for Repairs so we could Journal from the Stock Purchase nominal to the Repairs expense nominal