Journal Entry

Workflow

1. Gather Source Data

If ~~erp or ~~data warehouse is connected:

• Pull the trial balance for the specified period
• Pull subledger detail for the relevant accounts
• Pull prior period entries of the same type for reference
• Identify the current GL balances for affected accounts

If no data source is connected:

Connect ~~erp or ~~data warehouse to pull GL data automatically. You can also paste trial balance data or upload a spreadsheet.

Prompt the user to provide:

• Trial balance or GL balances for affected accounts
• Subledger detail or supporting schedules
• Prior period entries for reference (optional)

2. Calculate the Entry

Based on the JE type:

AP Accrual:

• Identify goods/services received but not invoiced by period end
• Calculate accrual amounts from PO receipts, contracts, or estimates
• Debit: Expense accounts (or asset accounts for capitalizable items)
• Credit: Accrued liabilities

Fixed Assets:

• Pull the fixed asset register or depreciation schedule
• Calculate period depreciation by asset class and method (straight-line, declining balance, units of production)
• Debit: Depreciation expense (by department/cost center)
• Credit: Accumulated depreciation

Prepaid:

• Pull the prepaid amortization schedule
• Calculate the period amortization for each prepaid item
• Debit: Expense accounts (by type — insurance, software, rent, etc.)
• Credit: Prepaid expense accounts

Payroll:

• Calculate accrued salaries for days worked but not yet paid
• Calculate accrued benefits (health, retirement contributions, PTO)
• Calculate employer payroll tax accruals
• Calculate bonus accruals (if applicable, based on plan terms)
• Debit: Salary expense, benefits expense, payroll tax expense
• Credit: Accrued payroll, accrued benefits, accrued payroll taxes

Revenue:

• Review contracts and performance obligations
• Calculate revenue to recognize based on delivery/performance
• Adjust deferred revenue balances
• Debit: Deferred revenue (or accounts receivable)
• Credit: Revenue accounts (by stream/category)

3. Generate the Journal Entry

Present the entry in standard format:

Journal Entry: [Type] — [Period]
Prepared by: [User]
Date: [Period end date]

| Line | Account Code | Account Name | Debit | Credit | Department | Memo |
|------|-------------|--------------|-------|--------|------------|------|
| 1    | XXXX        | [Name]       | X,XXX |        | [Dept]     | [Detail] |
| 2    | XXXX        | [Name]       |       | X,XXX  | [Dept]     | [Detail] |
|      |             | **Total**    | X,XXX | X,XXX  |            |      |

Supporting Detail:
- [Calculation basis and assumptions]
- [Reference to supporting schedule or documentation]

Reversal: [Yes/No — if yes, specify reversal date]

4. Review Checklist

Before finalizing, verify:

• Debits equal credits
• Correct accounting period
• Account codes are valid and map to the right GL accounts
• Amounts are calculated correctly with supporting detail
• Memo/description is clear and specific enough for audit
• Department/cost center coding is correct
• Entry is consistent with prior period treatment
• Reversal flag is set appropriately (accruals should auto-reverse)
• Supporting documentation is referenced or attached
• Entry is within the user's approval authority
• No unusual or out-of-pattern amounts that need investigation

5. Output

Provide:

1. The formatted journal entry
2. Supporting calculations
3. Comparison to prior period entry of the same type (if available)
4. Any items flagged for review or follow-up
5. Instructions for posting (manual entry or upload format for the user's ERP)