Issued By: Approved By:
Financial Controller (FC) Revision No:
Chief Finance Officer
Issue Date: No. of Pages – 03
Revision Date:
XXth August 2024
TITLE: JOURNAL ENTRIES
1.0 Purpose:
The SOP is aimed at providing a standard for preparing, authorizing and
posting journal entries to the General Ledger of the Company and ensuring that
entries posted to the ledger accounts are accurate and supported by
adequate documentation, reviewed, approved and recorded in accordance with
generally accepted accounting principles.
2.0 Scope:
Ensure consistent practices across the Finance Department for all the Journal
Entries being posted to the QB Accounting System. This SOP describes journal
entry initiation as well as journal entry authorization procedures for the Finance
Department personnel, who availed of the option from their QB user IDs to
post/view Journal Entries in the QB Accounting system. The Journal Entries are
often posted in the QB system for the following purposes.
Recording of Month End Entries of a financial nature
Recording of Balance Sheet transactions
Accounting Entry Adjustments
3.0 Responsibility:
Implementation: Finance Manager Accounting
Execution : Respective Finance Executive
Review : Financial Controller
Approval : Chief Financial Officer
4.0 Abbreviations:
FE - Finance Executive
MAF- Manager Financial Accounting
JE- Journal Entry
5.0 Procedure:
5.1. Journal Entry Creation.
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1. All journal entries posted to the System should be first raised through a General Ledger Journal
Entry Form based on MS Excel, which must be reviewed and approved by the Finance Manager
Accounting, prior to posting the Journal Entry to the QB Accounting System. The Journal Entries
recorded in the Journal Entry Forms should be completed with the following information.
Account Name and Account Code
Cost Centre
Debit Amount in figures
Credit Amount in figures
Description
2. Routine Journal Entries that are known to be recurring on a monthly basis should be
supported with appropriate supporting schedules by the respective Finance Executive to
ensure accuracy and completeness of the Journal Entry.
3. Non- routine Journal entries that do not occur on a regular basis, as well as any adjustment
entries or amendments that need to be done to the accounts, shall need to be prepared by
using the Journal Entry Form in the same manner and receive approval before posting it to
the QB system.
5.3. Journal Entry Review & Approval.
1. All Journal Entry Forms prepared by the respective Finance Executive must be supported with
appropriate supporting documents to be presented to the Finance Manager-Accounting for
review and approval.
2. The Finance Manager-Accounting will review the correctness of the Journal Entries and
approves the Journal Entry Voucher Form before posting to the General Ledger in QB
System.
5.4. Journal Entry Posting to General Ledger in the System
1. After the Journal Entry Voucher Forms are reviewed by the Finance Manager-Accounting, it
is forwarded to the respective Finance Executive for posting in the System.
5.5. Post Review of Journal Entries in the System
1. Once the journal entries has been posted in the General Ledger, an independent review will
be carried out on the GL Accounts monthly for any unusual transactions, possible errors or
misstatements and to assist with the correction of Journal Entries in the General Ledger.
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