Journal entry
A journal entry is the instruction stating which account is debited and which credited, and with what amount; it carries the date, a description and the reference to the document.
Definition
The order is convention, not arbitrariness: the debit account first, then the credit account. One entry can have several accounts on the same side — a compound entry — as long as the totals agree.
In modern programs entries usually arise automatically from a process: writing an invoice, allocating a payment, running payroll. They should nevertheless stay visible, because troubleshooting happens at this level.
What the software must be able to do
Check whether a free-form entry is possible — not every case fits a process — whether compound entries are supported, and whether every automatic entry appears traceably in the journal.
Checked Aug 2026
More terms under Bookkeeping and retention: Accrual principle Accrued liabilities Annual accounts Association accounting Balance sheet Balance sheet total Book value Break-even point Business assets Business expenses Cash book Cash flow statement Cash receipts Contribution margin Cost centre Current assets Debit and credit Depreciation Double-entry bookkeeping Duty to keep accounts EBIT EBITDA Equity Equity ratio Financial year Fixed assets Fixed costs Foreign currency General ledger Gross profit Hidden reserves Income statement Inventory count Journal Liabilities Liquidity Loss carry-forward Membership dues Net profit Opening balance sheet Overheads Pass-through item Prepaid expenses Provision Record-keeping ordinance Reserves Retained profit Simple accounts Swiss SME chart of accounts Tamper resistance Turnover Value adjustment Variable costs Volunteer-run structure Voucher Year-end closing modules