A journal is a register in which financial transactions are recorded chronologically. It serves as the basis for preparing financial statements.
Difference between journal and general ledger
In a financial accounting system, both the journal and the general ledger perform important functions, but they serve different purposes. For instance, the journal acts as a detailed journal. In it, all individual financial transactions are recorded chronologically. It records every incoming and outgoing cash flow, including associated details such as date, amount, counterparty and the nature of the transaction. This makes the journal an essential source of information for tracking daily financial activities and it provides a detailed record of transaction history.
The function of the general ledger is to record an organised summary of all transactions in the journals. The general ledger groups transactions by accounts, such as assets, liabilities, income and expenses. It provides a structured view of a company’s financial status at a given time by displaying the balances of all accounts. This enables managers and finance professionals to analyse trends, assess financial performance and make decisions based on the company’s overall financial health.
Default journal in TriFact365
In TriFact365, you can set a default journal (purchase and sales) for each administration. Go to Settings > Administrations > Three dots > Edit > Settings, and select the desired journal for purchase and sales invoices. This default journal is used unless specific accounts payable or accounts receivable have been set up for customers or suppliers. Click here for more information.