Film Accounting Glossary
Journal entry
What is a journal entry?
Also called JE, or manual journal.
A journal entry is a manual posting to the general ledger, used to record accruals, reclassify miscoded costs, allocate shared expenses, or correct an error.
Every entry needs a written explanation and support, because journal entries are where a set of books can be quietly reshaped. Auditors sample them for exactly that reason, particularly any entry made close to a reporting cut-off.
Example
A $12,000 entry reclassifies second-unit catering from the main unit's account, with a note explaining why and the production report attached. An entry of the same size with no explanation, posted the night before a reporting cut-off, is exactly what auditors sample for.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
The general ledger, used for accruals, reclassifications, and allocations. Every entry needs a written reason and support.
Common mistake
Posting an entry with no written explanation, especially near a reporting cut-off. That is precisely the pattern auditors sample for.
Related questions
- What is a journal entry used for on a production?
- Recording accruals, reclassifying miscoded costs, allocating shared expenses, and correcting errors, all of which need support and a written reason.
- Why do auditors sample journal entries?
- Because they are the one place a set of books can be reshaped without a vendor invoice behind it, particularly entries made just before a period closes.