A journal is where transactions are first recorded, in date order, as balanced debits and credits. It is the entry point of double-entry bookkeeping, ahead of the ledger that organises the same entries by account.
What it means
Each journal entry captures one event - a pay run, a payment, an accrual - as equal debits and credits, with a description and date. Recording it in the journal first creates an auditable trail; posting it to the ledger then updates the account balances. The two views, chronological and by-account, are complementary.
Where it fits in
Payroll's main accounting output is the payroll journal: a set of journal entries that turn a pay run into debits and credits for salary cost, PAYE, UIF, SDL, fund liabilities and the bank payment. Those entries post to the ledger, where the liabilities sit until they are paid.
Key rules
- Records transactions chronologically as balanced debits and credits.
- The first capture point, before posting to the ledger.
- A payroll journal expresses each pay run as journal entries.
- Provides the dated audit trail behind the ledger balances.
