A Journal Entry means entering a financial event bilaterally into the AF Code accounting database. Each journal entry consists of two main parts: Debit side and Credit side. In the domain model of the AF Code project, two separate fields are defined for each entry line: DebitAmount and CreditAmount. Each entry line is connected to an account, and the total debit amounts must equal the total credit amounts. This is the fundamental principle of double-entry accounting, carefully implemented in the AF Code accounting software.

In the AF Code system, journal entry is not possible without these prerequisites:

1. Chart of Accounts

The first step is having a framework for accounts. The Chart of Accounts defines the overall structure, and accounts are defined within it. For more information, read the article What are Accounts?.

2. Accounts

After the Chart of Accounts, it's time to define operational accounts: Cash, Bank, Sales, Expenses, etc. In the AF Code accounting database, when creating an account, a valid ChartOfAccountsId must exist and the account code must not be duplicate.

3. Journal

A Journal is a categorization of entries; such as General Journal, Bank Journal, Adjustments Journal. In the AF Code project, each journal has a unique code and name. See the article Journal Books for more information.

To record a journal entry in the AF Code system, follow these steps in order:

Step 1: Create Chart of Accounts

First, you need to have the accounts framework. In the service, creating an account without a valid Chart of Accounts is not possible.

Step 2: Create Accounts

Then define the required accounts. In the account creation request, ChartOfAccountsId is mandatory, and the service checks: the Chart of Accounts must exist and the account code must not be duplicate.

Step 3: Create Journal

Create the Journal. In the project, each journal has a code and name, and code uniqueness is controlled.

Step 4: Create Journal Entry

At this stage: the entry is connected to a journal (JournalId), the entry date is recorded, entry lines are added (each line = an account + debit/credit amount). In the service: first, the existence of the journal is checked, the fiscal period openness for the entry date is verified, and for each line, the account existence is controlled. The article Journal Entries has more details.

Step 5: Check Entry Balance

The most important accounting rule is applied here: Total Debit = Total Credit and both must be greater than zero. This is precisely implemented in the system with the ValidateBalancedEntryAsync method.

Step 6: Post Entry

After balancing: the entry status changes from Draft to Posted, the posting date is saved, total debit/credit is recorded on the entry itself. If the fiscal period is closed, Post is not allowed.

In the AF Code accounting database, the equality of total debit and credit is an undeniable principle. The reasons are:

In the AF Code accounting software, the ValidateBalancedEntryAsync method checks this condition. At Post time, if totals are not equal, the system displays the JournalEntryNotBalanced error.

All the following examples are executable in the AF Code accounting database and are completely practical for businesses in Afghanistan.

Example 1: Cash Sale

Assume goods worth 10,000 AFN were sold for cash.

• Cash ← Debit 10,000 AFN
• Sales ← Credit 10,000 AFN

Total Debit: 10,000 | Total Credit: 10,000 ✅ (Equal)

Example 2: Office Rent Payment from Bank

Assume office rent of 5,000 AFN was paid through bank.

• Rent Expenses ← Debit 5,000 AFN
• Bank ← Credit 5,000 AFN

Total Debit: 5,000 | Total Credit: 5,000 ✅ (Equal)

Example 3: Owner Invests Money in Company

Assume 50,000 AFN was added to the company's cash fund.

• Cash ← Debit 50,000 AFN
• Owner's Equity ← Credit 50,000 AFN

Total Debit: 50,000 | Total Credit: 50,000 ✅ (Equal)

Example 4: Equipment Purchase on Credit

Assume office equipment worth 20,000 AFN was purchased on credit.

• Equipment (Fixed Asset) ← Debit 20,000 AFN
• Accounts Payable ← Credit 20,000 AFN

Total Debit: 20,000 | Total Credit: 20,000 ✅ (Equal)

In all these examples, AF Code Company, through the design of the General Ledger module, has enabled accurate and error-free recording for businesses in Afghanistan.

In the AF Code accounting software, following these tips helps you record healthy and error-free entries:

• Design accounts correctly before entries: Account code and account type must be chosen correctly. Mistakes at this stage affect all subsequent entries.
• Each entry line must be connected to a valid account: In the AF Code accounting database, if an account does not exist or is inactive, you will receive an error.
• Do not enter negative amounts: The system Validator does not allow negative amounts. For reversals, use standard methods like reversing entries.
• Check entry balance before Post: Although the system checks this at Post time, make it a habit to check yourself.
• Always record entries in an open fiscal period: The ValidateOpenAsync service checks the fiscal period openness before recording. See the article Fiscal Periods for more information.

Journal entry is the heart of accounting, but to fully understand it, you should also be familiar with related concepts:

• What are Accounts? — Familiarity with account types and how to define them in the AF Code accounting database
• Journal Books — Examining types of journals and their application in accounting software
• Journal Entries — More details about entry structure and their different statuses
• Fiscal Periods — Importance of fiscal periods in journal entries and account closing

If you correctly follow this order:

1. Chart of Accounts
2. Accounts
3. Journal
4. Journal Entry with correct lines
5. Debit/Credit balance
6. Post

Then your system stays clean, reports become accurate, and financial errors decrease. The AF Code project exactly enforces this discipline and is very suitable for businesses in Afghanistan.

In the AF Code accounting database, all stages of journal entry are recorded in an auditable trail. This feature is vital for companies in Afghanistan that value financial transparency and need to provide accurate reports.

• Journal Entry → Journal Entry
• Debit → Debit
• Credit → Credit
• Post → Post
• Draft → Draft
• Posted → Posted
• General Ledger → General Ledger
• Journal → Journal
• Balanced Entry → Balanced Entry
• Chart of Accounts → Chart of Accounts