Journal entry approval workflow
Journal entry approval workflow for evidence checks, independent review, sensitive-entry escalation, ledger posting and retained audit support.
What the journal entry approval workflow process is
Manual journals can be necessary at close, but they are a high-risk route around the normal transaction flow. A useful journal process therefore requires a clear accounting rationale, supporting evidence, independent review and escalation for sensitive or high-value entries. A journal should not pass because its debit and credit happen to balance.
The workflow makes segregation visible. The preparer documents the entry, a reviewer tests the support and accuracy, a controller approves entries that meet the organisation's sensitivity or authority criteria, and the general ledger accountant posts only an approved journal. The retained package allows the posting to be traced back later.
What this flowchart covers
In this template
- Journal preparation with a complete-support and accounting-policy gate before independent review.
- A correction-and-resubmission loop when the reviewer finds unsupported or inaccurate entries.
- Sensitive or high-value escalation to the controller, followed by ledger posting and retained approval evidence.
When to use this template
- You are documenting manual journal controls for month-end close or financial reporting.
- Journal support, reviewer evidence and approval thresholds are inconsistent across the finance team.
- An auditor has asked how the preparer, reviewer and poster are kept separate.
How it works
Define a complete journal pack
Require the journal rationale, source evidence, account mapping, period, preparer and any calculation needed for another person to reproduce the entry.
Set sensitive-entry rules
Use your policy to identify entries that always escalate, such as certain cash, revenue or reserve postings, as well as value-based approval thresholds.
Preserve the evidence
Retain the request, review, approval and posting reference together so the journal can be tested without reconstructing it from email.
Frequently asked questions
What is a journal entry approval workflow?
It is the sequence for preparing a supported journal, checking it independently, obtaining any required authority approval, posting it to the general ledger and retaining the evidence.
Who should review a journal entry?
Someone independent of the preparer should review the accounting rationale, evidence and accuracy. Sensitive or high-value entries may also require controller or higher approval under the organisation's policy.
Why retain journal evidence?
The evidence connects a ledger posting to its rationale, source records and approval. It supports financial-close review, audit sampling and later correction if an entry proves inaccurate.