journal-entry

SKILL.md

Journal Entry Preparation

If you see unfamiliar placeholders or need to check which tools are connected, see CONNECTORS.md.

Important: This command assists with journal entry workflows but does not provide financial advice. All entries should be reviewed by qualified financial professionals before posting.

Prepare journal entries with proper debits, credits, supporting detail, and review documentation.

Usage

/je <type> <period>

Arguments

type — The journal entry type. One of:

ap-accrual — Accounts payable accruals for goods/services received but not yet invoiced

fixed-assets — Depreciation and amortization entries for fixed assets and intangibles

prepaid — Amortization of prepaid expenses (insurance, software, rent, etc.)

payroll — Payroll accruals including salaries, benefits, taxes, and bonus accruals

revenue — Revenue recognition entries including deferred revenue adjustments

period — The accounting period (e.g., 2024-12, 2024-Q4, 2024)

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:

The formatted journal entry

Supporting calculations

Comparison to prior period entry of the same type (if available)

Any items flagged for review or follow-up

Instructions for posting (manual entry or upload format for the user's ERP)