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How to add 'other income' as Journal Entry
How to add 'other income' as Journal Entry

Adding 'other income' using the Journal Entries endpoint

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Written by Ali Kiassat
Updated over a week ago

‘Other income’ refers to any revenue that a business generates that is not directly related to its primary operations or sales. This income is typically considered incidental and is not a regular part of a company's ongoing revenue streams. Examples of other income include income from interest, rent, and gains resulting from the sale of fixed assets.

Accounting Example:

When an other income entry is created:

Parent Account

Account

Transaction / Reference

Date

Debit

Credit

Cash

Petty Cash

Other Income / Other Income

Jan 1, 2022

10.00

-

Revenue

Sales

Other Income / Other Income

Jan 1, 2022

-

10.00

Leveraging Railz to use Journal Entries for other income:

You may follow the below steps to add ‘other income’ as a Journal entry:

  1. Determine the amount of 'other income' to be recorded. This information can be obtained from relevant source documents like bank statements, lease agreements, or legal settlements.

  2. Identify the accounts to be affected by the journal entry. In this case, 'other income' will be recorded as a credit entry, while the account receiving the income will be debited.

  3. The entry should include the date of the transaction, a brief description of the transaction, and the amount of the debit and credit entries.

Payload example:

You can use our POST /journalEntries endpoint to add a $10.00 debit line item as other income, for example, from the cash account and a $10.00 credit line item also as other income, for example, for the revenue account.

{
"connection":
{
"businessName": "{{businessName}}",
"serviceName": "{{serviceName}}"
},
"data":
{
"currency": "USD",
"currencyRate": 1.3,
"postedDate": "YYYY-MM-DD",
"lines":
[
{
"accountRef": "ID OF CASH ACCOUNT FROM ASP - SEE COA END POINT ",
"description": "LINE ITEM DESCRIPTION",
"amount": 10,
"type": "debit"
},
{
"accountRef": "ID OF REVENUE ACCOUNT FROM ASP - SEE COA END POINT ",
"description": "LINE ITEM DESCRIPTION",
"amount": 10,
"type": "credit"
}
],
"memo": "SOME MEMO"
}
}

For more information:

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