FAQ: Journal Entries

Can I edit a journal entry after I save it?

Most systems do not allow you to edit an entry after it has been posted to the ledger. If you need to correct a posted entry, create a reversing entry (a new journal entry that cancels out the first one with opposite debits and credits), then post a new corrected entry. This keeps an audit trail so you know what was changed and when.

If your administrator has locked the accounting period, you may not be able to create reversing entries either. Ask your admin to unlock the period temporarily if you need to make corrections.

Why did my invoice post to "Accounts Receivable" instead of "Cash"?

When you create a normal invoice, Usystems posts it to your Accounts Receivable account because the customer has not yet paid. If you later record a payment against that invoice, a separate posting moves the money from receivable to cash.

If your business requires invoices to post directly to cash (rare, but sometimes used for high-risk customers or point-of-sale sales), ask your administrator to adjust the invoice posting configuration.

What is the difference between the Journal and the Ledger?

• Journal: a chronological list of ALL entries (both automatic and manual), sorted by date. It shows every transaction that happened, in order.
• Ledger: organized by account. When you open a ledger, you see all entries for ONE account — all the debits and credits that happened to that account over time, with a running balance.

Both are views of the same data; the journal is the source list, and the ledger is the account-by-account breakdown.

Can I post a journal entry to a closed accounting period?

No, by design. Closed periods are locked to prevent accidental or fraudulent changes to past months. If you need to post an entry to a closed period (e.g., a late invoice from last month), ask your administrator to unlock the period, post your entry, and lock it again.

Why do I see two entries in the ledger for one invoice?

If an invoice is partially paid or fully paid, Usystems creates a second entry to record the payment. The first entry (when the invoice was created) shows the receivable. The second entry (when the payment was recorded) shows the cash coming in and the receivable going down.

You may also see more than two if the invoice was later adjusted (discounted, refunded, or tax-corrected); each adjustment is a separate entry.

How do I reconcile the journal with my bank statement?

Export or print the journal and ledger for your bank account for the same period as your bank statement, then match the entries line-by-line.

• Items on your statement but not in the ledger: these are pending posts (checks or transfers that have not yet been entered into Usystems). Create a journal entry or payment record for them.
• Items in the ledger but not on the statement: these are uncleared items (still processing at the bank). They will appear on a future statement.