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Understanding Journal Entry Format in Tofu

Journal Entry Format bookkeeping records every transaction as both a debit and a credit, giving you a complete and balanced view of your financials. In Tofu, JE Format is available for non-integrated entities across AP Bills, AR Invoices, Direct Expenses.

Written by Jess B

Step 1: Configure Journal Entry Format by extraction type

You can turn on Journal Entry Format per extraction type in your entity settings.

  1. Go to Entity Settings.

  2. Click Features.

  3. Under Document Extraction Types, find the extraction type you want to update.

  4. Click the Transaction Format dropdown and toggle it to Journal Entry Format.

You can enable Journal Entry Format for:

  • AP Bills

  • AR Invoices

  • Direct Expenses

Note:

  • Bank Statement support is coming in a future update.

  • Changing the Journal Entry Format setting does not apply to existing extractions. To see the changes, you need to re-extract the extraction. This applies in both directions: switching to Journal Entry Format and switching back to Transaction Format.

Step 2: Review your extraction

Once Journal Entry Format is enabled, your extractions will include additional fields and sections. Here is how it works when reviewing an extraction.

Assign a credit account to each line item

Each line item now includes a credit account field. Tofu assigns a default credit account (e.g., Accounts Payable), but you can change it per line if needed.

Note: All line items must have a credit account assigned before you can save any edits to the extraction.

Step 3: Review the Credit Line Items section

Below the line items, you will see the Credit Line Items section. This shows the total amount grouped by credit account. If multiple line items share the same credit account, their amounts are combined into one row.

Step 4: Check the Journal Entry Review section

The Journal Entry Review section gives you a full side-by-side view of the debit and credit entries for the extraction.

  • The debit side shows each line item individually.

  • The credit side shows the total per credit account (not per line item).

  • The debit and credit totals must always match.

💡 Tip: For AR Invoices, the entry direction is reversed. You assign debit accounts (e.g., Accounts Receivable) and the section is labeled Debit Line Items instead.

🔑 Quick Tips:

  • Re-extract documents after changing the setting to see updates

  • Journal Entry Format is available for AP Bills, AR Invoices, and Direct Expenses

  • All line items must have a credit account assigned before you can save edits

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