Managing journal entries
A journal entry represents a transaction in our accounting model. Each journal entry includes debit and credit line entries to and from different ledgers, ensuring the sum of credits equals the sum of debits.
You can use the Create Journal Entry endpoint to create a journal entry (with respective line entries) for a user directly. However, we recommend using this endpoint only for advanced accounting interfaces. It is safer to use the Create Transaction endpoint to create a transaction, which will automatically create a journal entry for you.You will have an opportunity to submit a unique ID for the transaction. This ID will be added to the corresponding accounting line entry generated for the the transaction. We recommend using this field to map the relationship between transactions in your system, and line entries and journal entries in Teal.
Journal entries can be updated using the Update Journal Entry endpoint. A common reason for updating a journal entires is to modify what expense ledger a particular expense is categorized to. Updates maintain the sum of credits equals sum of debits rule.
Modifying journal entries from reports
You likely will want to build the ability the edit journal entries into your reports, for example, to allow your user to change the categories assigned to transactions.
Here is an example of a cash flow report with the ability to edit journal entries in-line. Click on a ledger to expand it and reveal the ability to edit the categorization.
The Journal Entry Interface
If you are building a fully featured accounting suite, you will want to give your user fine grained control over creating and editing individual journal entries. This will be necessary for things like creating adjusting entries like depreciation, or revenue recognition. These are advanced concepts not used by main small business owners, but are absolutely required by professional bookkeepers and accountants.
Here is an example of an journal entry interface built using Teal: