Working with Journal Entries

Journal entries are a fundamental accounting tool in QuickBooks Online. This guide explains how they work with GrantLink.

What Are Journal Entries?

A journal entry is a direct debit and credit entry to your general ledger. Unlike bills or expenses, journal entries give you complete control over which accounts are affected.

Common uses include:

• Adjusting entries - End-of-period corrections
• Reclassifications - Moving expenses between accounts
• Accruals - Recording expenses before payment
• Allocations - Distributing shared costs

Journal Entries and Grants

When to Use Journal Entries

1. Correcting allocations - Moving an expense from one grant to another
2. Recording indirect costs - Applying overhead rates to grants
3. Allocating shared costs - Splitting costs across multiple grants
4. Year-end adjustments - Closing entries for grants

Creating Grant-Related Journal Entries

In QuickBooks Online:

1. Go to + New > Journal Entry
2. Enter the date and memo
3. For each line:
   • Select the account
   • Enter debit or credit amount
   • Assign the Class (for grant tracking)
   • Add a description
4. Verify debits equal credits
5. Save

Example: Reallocating an Expense

Moving $500 from Grant A to Grant B:

Account	Debit	Credit	Class
Office Supplies	$500		Grant B
Office Supplies		$500	Grant A

How GrantLink Handles Journal Entries

GrantLink syncs journal entries like other transactions:

1. Syncs automatically - Journal entries appear in GrantLink after sync
2. Respects Classes - Lines with Classes auto-allocate to grants
3. Shows net effect - Both sides of the entry are tracked

Viewing Journal Entries

In GrantLink:

1. Navigate to the grant
2. Go to the Transactions tab
3. Filter by Type > Journal Entry

Best Practices

1. Always add memos - Explain why the entry was made
2. Use Classes consistently - Apply Classes to every line
3. Date appropriately - Use the correct period date
4. Keep documentation - Link to supporting documents

Common Scenarios

Indirect Cost Application

Many funders allow indirect costs (overhead). To record:

Account	Debit	Credit	Class
Indirect Expense	$1,000		Grant A
Indirect Cost Recovery		$1,000	Unrestricted

Cost Sharing Allocation

Splitting a $3,000 expense 40/40/20 across three grants:

Account	Debit	Credit	Class
Program Expense	$1,200		Grant A
Program Expense	$1,200		Grant B
Program Expense	$600		Grant C
Program Expense		$3,000	(original class)

Troubleshooting

Journal Entry Not Appearing

• Check the entry date is within sync range
• Verify the entry was saved (not voided)
• Trigger a manual sync

Incorrect Grant Assignment

• Edit the journal entry in QuickBooks
• Update the Class on the appropriate line
• Wait for sync or trigger manually

How GrantLink supports this today

QuickBooks writeback is controlled separately from sync. Start in Read-only reporting mode unless your team intentionally enables selected writes such as transaction tag updates, journal entries, custom-field updates, or claim invoices.