Cost journals

Journal entries is the ledger header for a posting date, organization and accounting period. Journal lines records the debit or credit, account and posting type on each line. The header rolls up debits, credits and line count and shows an out-of-balance result for review. Cost Accountant uses these records to classify cost movements and to identify draft entries before posting. Ledger and Reconciliation surfaces open journal and period exceptions for the team.

• Choose the period. Use an open accounting period and the organization that owns the journal.
• Classify each line. Select the ledger account and the correct debit or credit side.
• Check the total. Compare rolled-up debit and credit totals before status changes.

Agree which source of cost activity creates a journal and how its identity is preserved. Set the account list and normal balance conventions before imports begin. Decide who may post a draft and how a correction is represented when an earlier journal has already been posted. Record the source document number in the journal description or memo so the team can check for duplicate entries.

A Cost Accountant receives an approved cost posting for a division. The accountant selects the period and records debit and credit lines against active ledger accounts. Before moving the journal from Draft, the accountant checks the out-of-balance value and each account classification. Finance Reviewer opens Cost Journals Unposted to inspect the draft, then checks its description or memo against the source document. If the team posts the entry, it records the posting date and keeps the source reference in that text. A correction to a posted entry follows the team’s documented procedure.

A journal entry is useful only when the source and period can be found later. Keep the source choice and description meaningful. A manual journal, a reclassification and an allocation have different reasons; the selected source and posting type help the next reviewer see why the lines exist. During the first operating cycle, compare the entry to its originating cost document and confirm that both debit and credit sides use the intended account. Finance Reviewer should also check the period dates before accepting the entry for review.

• Cost Journals Unposted — Find draft entries and inspect their balance before posting.
• Accounting Period Schedule — Check the period dates and close status.

See the actual cost process for the source handoff, and implementation for the journal review.