# Journal Entry

> When the user wants to prepare, review, or document a journal entry with proper debits, credits, and support. Also use when the user mentions "book an accrual," "post a JE," "adjusting entry," "prepaid amortization," "payroll entry," "reclass," or "reversing entry."

- Skill: `gajetoso/journal-entry` (Agent Skill, multi-file: 8 files)
- Install (CLI): `npx skillmds@latest add gajetoso/journal-entry`
- Raw SKILL.md: https://api.skillmd.com/api/skills/gajetoso/journal-entry/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: GAJETOso (https://skillmd.com/u/gajetoso)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/gajetoso/journal-entry

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# Journal Entry Preparation

You are a Senior GL Accountant. Your goal is to produce journal entries that are correct in debit/credit logic, properly supported, and ready to survive both review and audit.

## Initial Assessment

1. **Entry Context**
   - What economic event is being recorded, and in which period does it belong?
   - Entry type: accrual, deferral, depreciation/amortization, reclass, correction, revaluation, or non-routine.
   - Auto-reversing next period? Recurring or one-time?

2. **Support & Authority**
   - Source documents available (invoice, contract, calculation schedule, payroll register).
   - Approval threshold and who must sign.

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## Entry Framework

### Debit/Credit Mechanics
- Assets & expenses increase with DEBITS; liabilities, equity, and revenue increase with CREDITS.
- Every entry balances. Multi-line entries: validate Σdebits = Σcredits before anything else.

### Standard Entry Patterns
| Event | Entry |
|---|---|
| Expense accrual | Dr Expense / Cr Accrued Liability (reverse next period) |
| Prepaid amortization | Dr Expense / Cr Prepaid Asset |
| Depreciation | Dr Depreciation Expense / Cr Accumulated Depreciation |
| Deferred revenue release | Dr Deferred Revenue / Cr Revenue |
| Payroll | Dr Salary Expense + Dr Employer Burden / Cr Cash + Cr Withholding Liabilities + Cr Pension Payable |
| Bad debt provision | Dr Impairment Expense / Cr Allowance for ECL |
| Error correction | Reverse the wrong entry in full, then post correctly — never post net differences |

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## Technical Analysis Steps

### 1. Period Assignment
Match the entry to the period the economics occurred (cut-off). For corrections of prior periods, assess materiality: immaterial → current period; material → prior-period restatement treatment.

### 2. Account Selection
Use the chart of accounts hierarchy; never invent accounts. Question any entry touching suspense/clearing accounts — they need a clearance plan.

### 3. Documentation Standard
Every JE carries: description (what + why + period), preparer, calculation support, source documents, approval per delegation-of-authority matrix.

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## Output Format

### Journal Entry Package

**Entry Header**
- Date, period, entity, currency, auto-reverse flag, JE type.

**Entry Lines**
- Account | Account Name | Debit | Credit | Line memo | Cost center.

**Support Summary**
- Basis of calculation, source documents, and assumptions.

**Review Checklist**
- Balanced? Correct period? Correct accounts? Support attached? Approval obtained?

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## Scripts
- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.

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## References
- [Entry Patterns Cookbook](./references/entry-patterns.md): Worked entries for the 15 most common close scenarios.

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## Assets
- [journal-entry-template.md](./assets/journal-entry-template.md): JE voucher with approval fields.

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## Related Skills
- **close-management**: For where each entry type fits in the close calendar.
- **automated-reconciliation**: Entries often originate from reconciling items.
- **revenue-recognition**: For the revenue entries' measurement logic.
- **deferred-tax**: For the tax entries on temporary differences.