Automated journal entry
An automated journal entry is generated by accounting software from an approved transaction, rule or connected process. For example, a sales invoice can post revenue and receivables, while payroll software can post staff costs and liabilities. Automation reduces repeated entry but depends on correct source data, account mapping and settings. The entry must still have equal debits and credits and a traceable supporting record.
Worked example
A tax-free credit invoice for $600 is approved. The system automatically debits trade receivables $600 and credits revenue $600, updating the customer detail.
Common mistake
Do not enter the same journal manually after the software has already posted it; duplicate balanced entries can overstate balances.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | K1 | Direct | July 2027–August 2028 |
Related terms
Also called: System-generated journal entry