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Definition · bookkeeping

Journal entry

Journal entry is a dated record of a transaction posted to the ledger as balanced debits and credits. For journal entry, the important details are the accounting period, source evidence, reviewer, materiality threshold, and control purpose that make the treatment auditable during close, reporting, and later review.

Also known as GL entry, accounting entry

Written by Pluvo TeamReviewed by Pluvo Team
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Why it matters

Understanding journal entry matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. When the term is tied to a source system, owner, and review cadence, it becomes easier to audit assumptions, catch changes early, and keep operators aligned.

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In practice

  • Close example

    Teams use journal entry during close, review, or audit support when a balance or transaction needs evidence. The controller should be able to trace the number to source records, timing, reviewer, and control threshold.

  • Review example

    Journal entry should be reviewed whenever the source system, calculation logic, time period, or decision owner changes. That keeps the definition useful instead of letting it drift into a label.

In practice, teams should define journal entry with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.

Understanding journal entry matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. When the term is tied to a source system, owner, and review cadence, it becomes easier to audit assumptions, catch changes early, and keep operators aligned.

A strong workflow for journal entry separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.

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FAQ

What is a journal entry?

Journal entry is a dated record of a transaction posted to the ledger as balanced debits and credits. For journal entry, the important details are the accounting period, source evidence, reviewer, materiality threshold, and control purpose that make the treatment auditable during close, reporting, and later review.

What are the parts of a journal entry?

For journal entry, the useful categories depend on a dated record of a transaction posted to the ledger as balanced debits and credits. Teams should name the categories they use, map each one to source data, and keep the same taxonomy across reporting periods.

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Sources

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