The general journal cycle is a unique system which differs significantly from the revenue, expenses and payroll cycles.

How these cycles function will determine the transactions which will be in the relevant sub-ledgers. The sub-ledger balance will then be posted to the general ledger, which is the input driver for all financial reports.

The first three systems are relatively automated in that by following the documented process, we can place some reliance on the amounts that make it in to the financial reports.

General journals are different because they are effectively manual adjustments which can be made outside the usual transaction cycles and systems.

Types of general journals

There are two types of general journal entries:

• Recurring
• Non-recurring