Manual journal entries allow you to record adjustments, accruals, and corrections directly in the GL. This article explains how to create and post journal entries.
Last updated Apr 8, 2026 · 5 min read
Create manual journal entries for:
Adjustments - Fix errors in posting or accounts
Accruals - Record expenses incurred but not yet billed (e.g., rent accrual)
Deferrals - Spread expenses over future periods (e.g., insurance prepayment)
Corrections - Reverse and correct prior entries
Consolidation - Eliminate intercompany entries
Custom entries - Any GL transaction not handled by AP/AR/Payments
Bank reconciliation adjustments - Small differences between bank and ledger amounts (e.g., rounding, fees)
Tip: If you need to create a journal entry to resolve a bank reconciliation discrepancy (such as a small amount difference between the bank transaction and your ledger), you can use the Journal entry option directly within bank reconciliation. This creates and matches the journal entry in one step, saving you from having to manually create the JE first and then return to match it. See Resolving Discrepancies for more details.
To create a basic journal entry:
The entry is now posted to the GL.
A journal entry consists of:
Header:
Lines:
Each entry must have at least 2 lines, and debits must equal credits.
All entries use double-entry bookkeeping:
Example: Accrue rent expense
Both sides must balance. This ensures the accounting equation remains true.
Create entries with many lines:
Example: Month-end allocation of shared expense to departments
Debit: Department A Expense 40% - $4,000
Debit: Department B Expense 30% - $3,000
Debit: Department C Expense 30% - $3,000
Credit: Shared Expense Clearing - $10,000
Create a self-reversing journal entry by using the same GL account on both the debit and credit sides, then setting a release schedule on one of the lines to automatically reverse the entry in a future period.
To create a reversing entry:
Light will automatically create the reversing entry on the scheduled date.
Example — Accrue January consulting fees and reverse in February:
Line 1: Account 620100 (Consulting Expense) — Debit $5,000
Line 2: Account 620100 (Consulting Expense) — Credit $5,000 | Release schedule: Feb 1 (the release will hit Accrued expenses on this line)
When posted, the $5,000 accrual hits the books immediately. On February 1, Light automatically posts the reversal:
Line 1: Account 210300 (Accrued Expenses) — Debit $5,000
Line 2: Account 620100 (Consulting Expense) — Credit $5,000
This is useful for month-end accruals that need to reverse at the start of the next period.
For multi-entity companies, journal entries can post across entities using the Intercompany tab.
Same entity entry:
Intercompany entry:
For entries in foreign currencies:
When multi-entity, each entity can have different local currencies.
Some entries involve tax. For example:
Sales tax entry:
VAT entry:
GL accounts typically have a tax designation for proper reporting.
Depending on settings, journal entries may require approval:
Large entries or special types may have approval workflows.
Create multiple entries at once:
The import template is dynamic and includes all your active custom properties. You can use display names for columns, values, and accrual templates—internal names and UUIDs also work for backward compatibility.
For detailed column specifications, see Data Import and Migration Tools.
If an entry is still in DRAFT:
Once posted, you cannot edit directly. Instead:
Once an entry is ready:
Posting is the point of no return—the entry is now in the permanent GL.
Accrual template:
Description: Monthly rent accrual - [Month]
Debit: Rent Expense (5500)
Credit: Accrued Rent (2750)
Depreciation template:
Description: Monthly depreciation - [Asset]
Debit: Depreciation Expense (5600)
Credit: Accumulated Depreciation (1800)
Intercompany allocation (use the Intercompany tab):
Description: Allocate headquarters costs
Debit: Entity A Expense (570000)
Debit: Entity B Expense (570000)
Credit: HQ Allocation Clearing (999900)
At period-end, you may create:
Accrual entries - Record unbilled expenses or unpaid revenues
Deferral entries - Spread prepaid expenses to future periods
Reclassification entries - Move balances between accounts
Tax entries - Estimate tax liability
Create these after other transactions post but before closing the period.
Find created entries:
Saved searches help for recurring review tasks.
Before posting, entries are validated:
Validation prevents invalid entries from reaching the ledger.
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