Scenario: Your fiscal year ended on December 31st. Your auditor has provided an adjustment to record Depreciation Expense of $5,000 for the year.
Objective: Record this as a formal Year-End Journal Entry.
1. Navigate: Go to Transactions > General Journal > Journal Entries.
2. Set Date: Enter 12/31/YYYY (insert your last fiscal year-end).
3. Activate Year End Mode: Look at the Options box in the top right. Check the box for Year End. (Verify the box is active; if it is grayed out, check that your date is correct).
4. Enter Transaction:
◦ Line 1: Account: Depreciation Expense. Debit: 5,000.00.
◦ Line 2: Account: Accumulated Depreciation. Credit: 5,000.00.
5. Memo: Enter “Audit Adjustment #1 – Depreciation”.
6. Save: Click Save.
7. Result: This transaction is now tagged as a year-end adjustment. When running reports, you will notice options to separate these entries from normal daily operations.