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what is the point of posting a journal entry?

Robert Nicholls
on 5/20/14, 2:23 PM 1,316 views

Posting an entry from an accounting prespective is taking the information from the journal and putting it on the ledger, but that is done automatically. So, what is the point of posting an entry?


Draft journal entries can be modified. They are not considered as part of the ledger, they are not included in legal reports. Posted journal entries can not be modified anymore and appear on legal reports.

Ray Carnes
On 5/20/14, 7:26 PM

One business case is that POSTED journal entries are those that have ACTUALLY happened.  If you write a check, or receive payment from a Customer - it may still take time for the check to be deposited and for the payment to be batched from the credit card processor.  The draft Journal Entry indicates you EXPECT funds to move, the posted Journal Entry indicates you have confirmed from the bank that the funds have ACTUALLY moved.

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Asked: 5/20/14, 2:23 PM
Seen: 1316 times
Last updated: 3/16/15, 8:10 AM