Journal Entries

Journal entries are the fundamental unit of record-keeping in Keystone, covering lender deposits, commission payments, and manual adjustments.

What is a journal entry?

A journal entry is a record of a financial transaction. In double-entry bookkeeping, every journal entry consists of two or more lines, where:

• At least one line records a debit to an account
• At least one line records a credit to an account
• Total debits must equal total credits — the entry must be balanced

For example, depositing a $10,000 lender check would be recorded as:

Account	Debit	Credit
Cash - Operating	$10,000
Accounts Receivable - Lender		$10,000

This single entry affects two accounts: Cash goes up (debit to an asset) and the receivable goes down (credit to an asset).

Go to Accounting > Journal Entries in the sidebar.

Journal entry fields

Each journal entry has the following header fields:

Field	Description
Entry Number	Auto-assigned sequential number (e.g., JE-1, JE-2). Cannot be changed.
Date	The date of the transaction. Required.
Memo	An optional description of the transaction.
Status	Draft, Posted, or Voided.
Source	How the entry was created (Manual, Loan Funded, etc.).

Entry line fields

Each line within a journal entry has:

Field	Description
Account	The chart of accounts entry this line affects. Required.
Description	Optional line-level description.
Debit	The debit amount for this line (0.00 if this is a credit line).
Credit	The credit amount for this line (0.00 if this is a debit line).

Each line can only have a debit or a credit, not both. When you enter a value in the debit field, the credit field is automatically cleared, and vice versa.

Entry statuses

Journal entries move through a lifecycle of three statuses:

Draft

• The entry has been created but has not yet affected account balances or reports.
• Drafts can be freely edited or deleted.
• All manually created entries start as Drafts.
• A Draft entry must be explicitly Posted to take effect.

Posted

• The entry is finalized and affects account balances and financial reports.
• Posted entries cannot be edited or deleted.
• The postedAt timestamp records when the entry was posted.
• If you need to correct a posted entry, you can Void it or create a Reversal.

Voided

• The entry has been canceled and no longer affects account balances.
• The voidedAt timestamp records when the entry was voided.
• Voided entries remain visible in the journal entry list for audit purposes.
• Voiding is a one-way action — a voided entry cannot be un-voided.

Entry sources

The source field indicates how a journal entry was created. This helps you distinguish manual entries from system-generated ones:

Source	Description
Manual	Created by a user through the journal entry form
Loan Funded	Automatically generated when a loan reaches the “Funded” status
Check Received	Automatically generated when a lender check is recorded
Loan Adjustment	Generated for loan-level adjustments (reimbursements, fee corrections)
Revenue Line Item	Generated for revenue line items on a loan
Commission Accrual	Generated when commissions are calculated and accrued
Commission Payment	Generated when commissions are paid out
Draw Payment	Generated when a draw payment is issued to an employee
Reversal	Created as the opposite of an existing entry (debits and credits swapped)
Bank Import	Generated from imported bank transaction data

The source badge appears on the journal entry list and detail pages, making it easy to identify the origin of each entry.

Automatic journal entries from loan events

When account mappings are configured (see Account Mappings), Keystone automatically creates journal entries as loans progress through key stages. These entries:

• Are linked to the source loan via the Linked Loan field
• Use the source type corresponding to the event (e.g., LoanFunded)
• Follow the debit/credit accounts specified in the mapping configuration
• Are created as Drafts by default, so you can review them before posting

For example, when a loan is funded and an account mapping exists for the “Loan Funded” event, the system creates a journal entry debiting and crediting the mapped accounts for the loan amount or broker compensation.

Creating a manual journal entry

Step-by-step:

1. Navigate to Accounting > Journal Entries.
2. Click the New Journal Entry button.
3. Fill in the header fields:
   • Date — Select the transaction date (defaults to today).
   • Memo — Enter an optional description (e.g., “Monthly rent payment”).
4. Add journal entry lines:
   • The form starts with two blank lines.
   • For each line, select an Account from the dropdown, enter a Debit or Credit amount, and optionally add a Description.
   • Click Add Line to add more lines as needed.
   • Click the trash icon to remove a line (minimum two lines required).
5. Verify the entry is balanced:
   • The footer row shows total debits and total credits.
   • If the entry is out of balance, the difference is displayed in red and the Save button is disabled.
6. Click Save as Draft.
7. You are redirected to the Journal Entries list. The new entry appears with “Draft” status.

Viewing a journal entry

Click any entry in the journal entry list (or click “View”) to open the detail page. The detail page shows:

• Header: Entry number, status badge, source badge, date, and memo
• Metadata: Created date, posted date (if posted), voided date (if voided), linked loan (if any), and reversal relationships
• Lines table: All debit and credit lines with account numbers, names, descriptions, and amounts
• Totals: Sum of all debits and credits in the footer

Posting a journal entry

Posting finalizes a draft entry so it affects account balances and financial reports.

1. Open the journal entry detail page for a Draft entry.
2. Click the Post button.
3. Confirm the action in the dialog. You will see: “Are you sure you want to post this journal entry? This action cannot be undone.”
4. The entry status changes to “Posted” and the postedAt date is recorded.

Once posted, the entry’s debits and credits are reflected in:

• The General Ledger for each affected account
• The Trial Balance
• The Balance Sheet (for Asset, Liability, and Equity accounts)
• The Income Statement (for Revenue and Expense accounts)

Voiding a journal entry

Voiding cancels a posted entry so it no longer affects account balances.

1. Open the journal entry detail page for a Posted entry.
2. Click the Void button.
3. Confirm the action. You will see: “Are you sure you want to void this journal entry? This will reverse all account balances.”
4. The entry status changes to “Voided” and the voidedAt date is recorded.

The voided entry remains in the journal entry list for audit trail purposes but its amounts are excluded from reports.

Reversing a journal entry

Reversing creates a new journal entry that is the exact opposite of an existing posted entry — all debits become credits and all credits become debits.

1. Open the journal entry detail page for a Posted entry.
2. Click the Reverse button.
3. Confirm the action. You will see: “Create a reversing entry? This will create a new journal entry with opposite debits and credits.”
4. A new Draft entry is created with:
   • A memo like “Reversal of JE-42: [original memo]”
   • Source set to “Reversal”
   • Debits and credits swapped from the original
   • A link back to the original entry
5. You are redirected to the journal entries list. The new reversal entry can be reviewed and posted.

The original entry and the reversal entry are linked to each other. The original entry’s detail page shows a “Reversed By” link, and the reversal’s detail page shows a “Reversal Of” link.

Deleting a draft entry

Only Draft entries can be deleted. Posted and Voided entries are permanent records.

1. Open the journal entry detail page for a Draft entry.
2. Click the Delete button.
3. Confirm the action.
4. The entry is permanently removed.

Filtering the journal entry list

The journal entries list page supports filtering by:

Filter	Options
Status	Draft, Posted, Voided, or all
Source	Any of the entry source types
Date Range	Start date and end date

The list is paginated (25 entries per page) and sorted by date, newest first. Use the Previous/Next buttons to navigate between pages.

Linked loan entries

Journal entries generated from loan events include a link to the source loan. On the entry detail page, the “Linked Loan” field shows the broker loan number as a clickable link that navigates to the loan detail page.

Conversely, on a loan’s detail page, you can view all journal entries associated with that loan.

Step-by-step walkthrough: Recording a lender check

Here is a complete walkthrough of recording a lender check manually:

1. Navigate to Accounting > Journal Entries and click New Journal Entry.
2. Set the Date to the date the check was received.
3. Set the Memo to something descriptive, like “Lender check - Loan #2024-0145 - Smith.”
4. On the first line:
   • Select Cash - Operating as the account.
   • Enter $8,500.00 in the Debit field.
   • Optionally add a description: “Check deposit.”
5. On the second line:
   • Select Accounts Receivable - Lender as the account.
   • Enter $8,500.00 in the Credit field.
   • Optionally add a description: “Clear AR for loan #2024-0145.”
6. Verify the footer shows equal totals: $8,500.00 in both Debit and Credit.
7. Click Save as Draft.
8. Open the newly created entry and click Post to finalize it.

The Cash account balance increases by $8,500 and the Accounts Receivable balance decreases by $8,500 on all reports.