journal-entry-prep

name	journal-entry-prep
description	Prepare journal entries with proper debits, credits, and supporting documentation for month-end close.
type	reference
version	1.0.0
category	business
last_updated	"2026-02-03T00:00:00.000Z"
source	https://github.com/anthropics/knowledge-work-plugins
related_skills	["reconciliation","financial-statements","variance-analysis","close-management","audit-support"]
capabilities	[]
requires	[]
see_also	[]
tags	[]

Journal Entry Preparation

Important: This skill assists with journal entry workflows but does not provide financial advice. All entries should be reviewed by qualified financial professionals before posting.

Best practices, standard entry types, documentation requirements, and review workflows for journal entry preparation.

Standard Accrual Types and Their Entries

Accounts Payable Accruals

Accrue for goods or services received but not yet invoiced at period end.

Typical entry:

• Debit: Expense account (or capitalize if asset-qualifying)
• Credit: Accrued liabilities

Sources for calculation:

• Open purchase orders with confirmed receipts
• Contracts with services rendered but unbilled
• Recurring vendor arrangements (utilities, subscriptions, professional services)
• Employee expense reports submitted but not yet processed

Key considerations:

• Reverse in the following period (auto-reversal recommended)
• Use consistent estimation methodology period over period
• Document basis for estimates (PO amount, contract terms, historical run-rate)
• Track actual vs accrual to refine future estimates

Fixed Asset Depreciation

Book periodic depreciation expense for tangible and intangible assets.

Typical entry:

• Debit: Depreciation/amortization expense (by department or cost center)
• Credit: Accumulated depreciation/amortization

Depreciation methods:

• Straight-line: (Cost - Salvage) / Useful life — most common for financial reporting
• Declining balance: Accelerated method applying fixed rate to net book value
• Units of production: Based on actual usage or output vs total expected

Key considerations:

• Run depreciation from the fixed asset register or schedule
• Verify new additions are set up with correct useful life and method
• Check for disposals or impairments requiring write-off
• Ensure consistency between book and tax depreciation tracking

Prepaid Expense Amortization

Amortize prepaid expenses over their benefit period.

Typical entry:

• Debit: Expense account (insurance, software, rent, etc.)
• Credit: Prepaid expense