A journal entry support template is the sheet attached to a manual journal that explains why it exists: the purpose, the calculation, the source documents, who prepared it, who approved it and whether it reverses. Copy the fields below, attach one completed sheet to every non-system journal, and a reviewer can re-perform the entry without asking anyone.
Why does every journal need support?
A journal moves value between accounts. Without support, the only record of why is the description line, usually a few words typed under deadline. Auditors test manual journals precisely because they bypass the controls built into sub-ledgers. A journal entry that cannot be explained from its support is a finding waiting to happen. The finance guide, books you can audit, treats support as the line between an agent you can rely on and one you cannot.
When an AI agent drafts journals, support becomes the main control. The agent must show every input it used and where each came from, so that the person posting can see whether it rests on solid ground. The principle is that a finance agent's figures must trace to an entry, and the trace runs both ways: from entry to evidence, and from evidence to entry.
When should you use it?
For every manual or adjusting journal: accruals, prepayment releases, reclassifications, corrections, intercompany recharges, provisions and consolidation adjustments. System-generated postings from a sub-ledger do not need it, because their support is the transaction itself.
Use the same template whether a person or an agent prepares the journal. A single format makes review faster and lets you compare quality between the two.
How do you fill in each field?
Purpose answers "what would be wrong in the accounts if this journal were not posted?" One or two sentences.
Calculation must be re-performable. Show quantities, rates and periods.
Source documents are listed with references. For an agent, add the provenance of each: whether it came from your own system of record, a named confirmer, or an external document such as an emailed invoice.
Reversal states whether the journal reverses, when, and that the reversal is scheduled. Reversing a posted journal has its own controls; see whether an AI agent can reverse a journal entry.
Preparer and approver must be different. If the agent prepared it, the approver cannot be the person who configured the agent.
The journal entry support template
| Field | Guidance |
|---|---|
| Journal reference | System journal number once posted |
| Entity and period | Legal entity and accounting period |
| Journal type | Accrual, release, reclass, correction, provision, recharge |
| Purpose | What would be wrong without it |
| Lines | Account, cost centre, debit, credit, line description |
| Calculation | Re-performable working |
| Source documents | References and links |
| Source provenance | System of record, named confirmer, external |
| Reversing? | Yes or no; reversal date if yes |
| Recurring? | Yes or no; schedule if yes |
| Prepared by | Person, or agent name and brief version |
| Preparer notes | Judgements made, assumptions, open questions |
| Approved by | Named person, different from preparer |
| Posted by | Named person and date |
A filled sample
A hypothetical retail group, reclassification at month-end.
| Field | Entry |
|---|---|
| Entity and period | UK trading company, month 6 |
| Journal type | Reclassification |
| Purpose | Marketing spend for a store opening was coded to general marketing; it should sit in store pre-opening costs so the store's results are correct |
| Lines | Dr 6410 Store pre-opening 7,200; Cr 6200 Marketing 7,200; cost centre Store 214 |
| Calculation | Three invoices from the print supplier, 2,400 each, all referencing Store 214 opening |
| Source documents | Invoices INV-881, INV-884, INV-890; PO 5120 |
| Source provenance | PO sealed (purchasing system); invoices external (supplier PDFs) |
| Reversing? | No |
| Prepared by | Close agent, brief v6, depth 2 |
| Preparer notes | Store reference appears on all three invoices and on the PO. A fourth invoice from the same supplier has no store reference and was left in marketing |
| Approved by | Retail finance manager |
| Posted by | Assistant controller |
The preparer note is the most useful line here. It tells the approver what the agent decided not to include and why. For the step-by-step process behind this, see how to draft journal entries for a person to post with an AI agent.
Questions people ask
Do small journals need full support?
Set a threshold in policy below which a shorter version is acceptable, but keep purpose, calculation and approver for every journal. Small journals are a common way to hide errors.
Where should the support be stored?
Attached to the journal in the ledger if your system allows it, otherwise in the period's close folder with the journal number in the file name. The link must survive staff leaving.
Can the agent approve its own journals if they are below a limit?
No. Preparation and approval should always be separate. A low limit reduces the harm of a mistake; it does not replace the second look.