You can make journal entries by clicking the Journal entries tab and then clicking Create new journal entry.
Validation
Journal entries must be validated before creation:
- At least two accounts are required
- Debits must equal credits
Denari handles the math and validation automatically — you won’t be able to create an unbalanced journal entry by mistake.
Supported journal entry types
- Adjusting
- Eliminating
- Reclass
- Tax Adjustments (Tax projects only)
Creating a journal entry
Enter values into the Debit and Credit columns. If you enter a negative value to a debit account, it’s automatically converted to a credit (and vice versa). A default date is set to the project period end date.
A difference amount on the total column shows any imbalance between debits and credits as you work.
Tax journal entries
On tax projects, you can create tax journal entries by selecting Tax as the JE type. The tax adjustment account offsets any tax adjustments, and adjustments directly affect Net Income to calculate the taxable income shown at the bottom of the Tax Trial Balance.
M-1, M-2, and M-3 adjustments
Tax journal entries support M-1, M-2, and M-3 adjustment lines, which are broken out on the tax trial balance.
M-3 adjustments are split into two sub-types:
- M-3 Temporary — Temporary differences between book and tax income
- M-3 Permanent — Permanent differences between book and tax income
Each sub-type is displayed separately on the tax trial balance.
QBO sync back
If you want journal entries created in Denari to appear in your QBO client’s books, click the Sync Adjusting Journal Entries button in the top right of the Journal Entries page.
If the books are closed in QBO, you’ll receive an error message when attempting to sync back.
PDF export
Journal entry numbers are grouped in the PDF export so that a single journal entry isn’t split across pages. 
