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.