{"id":21328,"date":"2021-08-19T15:21:17","date_gmt":"2021-08-19T14:21:17","guid":{"rendered":"https:\/\/bigredcloud.com\/?post_type=docs&#038;p=21328"},"modified":"2022-10-20T11:29:24","modified_gmt":"2022-10-20T10:29:24","password":"","slug":"debtor-and-creditor-journals","status":"publish","type":"docs","link":"https:\/\/bigredcloud.com\/en\/documents\/debtor-and-creditor-journals\/","title":{"rendered":"Debtor and Creditor Journals"},"content":{"rendered":"<div class=\"fusion-text\">\n<p>Debtor and Creditor Journals are direct adjustments to the balance on a Supplier\u2019s or Customer\u2019s account without making a normal entry in one of the day books. \u00a0An example would be where you have a Customer\u2019s account with a small balance which you wish to write off in the accounting software. \u00a0This can be done by making a Debtors Journal entry. \u00a0Most adjustments to a Supplier\u2019s or Customer\u2019s balance will be made by the issuing of invoices or credit notes by your Supplier or by you and these should be entered in the Purchases Book or Sales Book in the usual way. \u00a0However, the following are examples of situations where an entry to a Creditors or Debtors Journal may be necessary in the accounting software:<\/p>\n<ul>\n<li>Where adjustments to your Purchase Ledger or Sales Ledger balances have been advised to you by your accountant as part of your annual audit.<\/li>\n<li>Where the writing-off of a balance due has been agreed with a Supplier or Customer and no credit note has subsequently been issued.<\/li>\n<li>Where you have agreed a reduction in a Creditor\u2019s (Supplier\u2019s) balance as payment for goods supplied by you to them. \u00a0(This is often referred to as a \u2018contra\u2019\u00a0or\u00a0\u2018trade-in\u2019).<\/li>\n<li>Where a debt due to you is unlikely to be paid but you may not wish to issue a credit note to your Customer.<\/li>\n<\/ul>\n<p><strong>Note:<\/strong> The examples given above in no way constitute formal advice. \u00a0In any given instance you may wish to consult you accountant before proceeding to adjust a balance using these routines.<\/p>\n<p><strong>To Make Entries In The Creditors\/Debtors Journal:<\/strong><\/p>\n<ol>\n<li>Click on the Debtors or Creditor Journal icons or in the Books menu select\u00a0Journal Adjustments, and then either\u00a0Creditor Journals\u00a0or\u00a0Debtor Journals.<\/li>\n<li>On display is the Creditors Journal or Debtors Journal, the formats of which are identical.<\/li>\n<li>To begin entering a transaction either click on the Add button or press the A key. \u00a0A new window entitled\u00a0Add a Creditors Journal\u00a0or\u00a0Add a Debtors Journal is displayed.<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21329\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/add_debt_jrnl.jpg\" alt=\"\" width=\"326\" height=\"367\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/add_debt_jrnl.jpg 326w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/add_debt_jrnl-266x300.jpg 266w\" sizes=\"auto, (max-width: 326px) 100vw, 326px\" \/><\/p>\n<p>You can now fill in the blank entry form with the details of each transaction.<\/p>\n<p><strong>Notes On Creditors\/Debtors Journal Entries.<\/strong><\/p>\n<p><strong>Month.<\/strong><\/p>\n<p>Either accept the current month which is on display or pick-and-click whichever previous month to which this Journal transaction relates.<\/p>\n<p><strong>Date.<\/strong><\/p>\n<p>Enter transaction date. \u00a0As described earlier, the program attaches more importance to the month of entry than it does to the date of the transaction.<\/p>\n<p><strong>Reference.<\/strong><\/p>\n<p>On display is the \u2018next sequential number\u2019 as generated automatically by the program. \u00a0(The Creditors and Debtors Journals each have their own sequences). \u00a0Unless there is a good reason for not doing so, you should simply accept this \u2018next number\u2019 and move on. \u00a0(If you start to use the\u00a0Big Red Cloud\u00ae\u00a0midway through your Financial Year and you have already made Journal adjustments, then you may wish to overwrite the displayed number in order to \u2018reset\u2019 the sequence).<\/p>\n<p><strong>A\/C Code.<\/strong><\/p>\n<p>Enter either the Supplier Code or the Customer Code of the company whose account you wish to adjust.<\/p>\n<p><strong>Name.<\/strong><\/p>\n<p>The relevant Supplier\u2019s or Customer\u2019s name will automatically display in this box.<\/p>\n<p><strong>Detail.<\/strong><\/p>\n<p>Type in whatever you choose (maximum 40 characters) to describe the transaction or pick-and-click an Abbreviation from the drop-down list, then move on.<\/p>\n<p><strong>Note:<\/strong> Abbreviations are added through the Lookup facility which has its own icon\/button. \u00a0For Creditors\/Debtors Journal transactions a useful narrative to have available (in Abbreviations) would be \u201cBalance written off\u201d.<\/p>\n<p><strong>Debit.<\/strong><\/p>\n<p>Enter the amount by which you wish to debit the account.<\/p>\n<ul>\n<li>If entering a Creditors Journal, debiting the account will\u00a0reduce\u00a0the amount you owe the Supplier.<\/li>\n<li>If entering a\u00a0Debtors Journal, debiting the account will\u00a0increase\u00a0the amount the Customer owes you.<\/li>\n<\/ul>\n<p><strong>Credit.<\/strong><\/p>\n<p>Enter the amount by which you wish to credit the account.<\/p>\n<ul>\n<li>If entering a Creditors Journal, crediting the account will\u00a0increase\u00a0the amount you owe the Supplier.<\/li>\n<li>If entering a\u00a0Debtors\u00a0Journal, crediting the account will\u00a0reduce\u00a0the amount the Customer owes you.<\/li>\n<\/ul>\n<p><strong>Note:<\/strong> A single transaction must contain\u00a0either\u00a0a Debit entry\u00a0or\u00a0a Credit entry; it cannot contain both.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Debtor and Creditor Journals are direct adjustments to the balance on a Supplier\u2019s or Customer\u2019s account without making a normal&#8230;<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"doc_category":[206],"doc_tag":[],"class_list":{"0":"post-21328","1":"docs","2":"type-docs","3":"status-publish","5":"doc_category-entering-transactions"},"year_month":"2026-04","word_count":687,"total_views":0,"reactions":{"happy":0,"normal":0,"sad":0},"author_info":{"name":"apathak","author_nicename":"apathak","author_url":"https:\/\/bigredcloud.com\/en\/author\/apathak\/"},"doc_category_info":[{"term_name":"Entering Transactions","term_url":"https:\/\/bigredcloud.com\/en\/docs-category\/entering-transactions\/"}],"doc_tag_info":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Debtor and Creditor Journals - Big Red Cloud<\/title>\n<meta name=\"description\" content=\"Debtor and Creditor Journals are direct adjustments to the balance on a Supplier\u2019s or Customer\u2019s account without making a normal entry in one of the day\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Debtor and Creditor Journals\" \/>\n<meta property=\"og:description\" content=\"Debtor and Creditor Journals are direct adjustments to the balance on a Supplier\u2019s or Customer\u2019s account without making a normal entry in one of the day\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/\" \/>\n<meta property=\"og:site_name\" content=\"Big Red Cloud\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SimpleOnlineAccounts\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-20T10:29:24+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/add_debt_jrnl.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@BigRedCloud\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Debtor and Creditor Journals - Big Red Cloud","description":"Debtor and Creditor Journals are direct adjustments to the balance on a Supplier\u2019s or Customer\u2019s account without making a normal entry in one of the day","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/","og_locale":"en_US","og_type":"article","og_title":"Debtor and Creditor Journals","og_description":"Debtor and Creditor Journals are direct adjustments to the balance on a Supplier\u2019s or Customer\u2019s account without making a normal entry in one of the day","og_url":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/","og_site_name":"Big Red Cloud","article_publisher":"https:\/\/www.facebook.com\/SimpleOnlineAccounts","article_modified_time":"2022-10-20T10:29:24+00:00","og_image":[{"url":"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/add_debt_jrnl.jpg","type":"","width":"","height":""}],"twitter_card":"summary_large_image","twitter_site":"@BigRedCloud","twitter_misc":{"Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/","url":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/","name":"Debtor and Creditor Journals - Big Red Cloud","isPartOf":{"@id":"https:\/\/bigredcloud.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/#primaryimage"},"image":{"@id":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/#primaryimage"},"thumbnailUrl":"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/add_debt_jrnl.jpg","datePublished":"2021-08-19T14:21:17+00:00","dateModified":"2022-10-20T10:29:24+00:00","description":"Debtor and Creditor Journals are direct adjustments to the balance on a Supplier\u2019s or Customer\u2019s account without making a normal entry in one of the day","breadcrumb":{"@id":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/#primaryimage","url":"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/add_debt_jrnl.jpg","contentUrl":"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/add_debt_jrnl.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/bigredcloud.com\/documents\/debtor-and-creditor-journals\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/bigredcloud.com\/en\/"},{"@type":"ListItem","position":2,"name":"Docs","item":"https:\/\/bigredcloud.com\/en\/documents\/"},{"@type":"ListItem","position":3,"name":"Debtor and Creditor Journals"}]},{"@type":"WebSite","@id":"https:\/\/bigredcloud.com\/#website","url":"https:\/\/bigredcloud.com\/","name":"Big Red Cloud","description":"Online Accounting Software","publisher":{"@id":"https:\/\/bigredcloud.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/bigredcloud.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/bigredcloud.com\/#organization","name":"Big Red Cloud","url":"https:\/\/bigredcloud.com\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/bigredcloud.com\/#\/schema\/logo\/image\/","url":"https:\/\/bigredcloud.com\/wp-content\/uploads\/2025\/07\/unnamed-1.png","contentUrl":"https:\/\/bigredcloud.com\/wp-content\/uploads\/2025\/07\/unnamed-1.png","width":512,"height":512,"caption":"Big Red Cloud"},"image":{"@id":"https:\/\/bigredcloud.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/SimpleOnlineAccounts","https:\/\/x.com\/BigRedCloud","https:\/\/www.linkedin.com\/company\/big-red-cloud\/?originalSubdomain=ie"]}]}},"_links":{"self":[{"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/docs\/21328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/comments?post=21328"}],"version-history":[{"count":0,"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/docs\/21328\/revisions"}],"wp:attachment":[{"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/media?parent=21328"}],"wp:term":[{"taxonomy":"doc_category","embeddable":true,"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/doc_category?post=21328"},{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/bigredcloud.com\/en\/wp-json\/wp\/v2\/doc_tag?post=21328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}