Journal reason is the explanation for the whole entry. Write enough to identify the business event, the period involved and the record or calculation supporting the amounts. A description such as 'adjustment' gives a future reviewer little help when the same accounts appear in several entries.
The journal form accepts a reason between 3 and 2,000 characters. Keep the explanation concise while retaining the information needed to trace the adjustment. For example, an illustrative reason could identify a specific service period and the supplier statement used to calculate it, without pasting the statement's sensitive contents.
Use each line's Description for details that apply only to that debit or credit. The Journal reason should explain why the entry exists; individual descriptions can explain the allocation across accounts. These fields are retained with the company's accounting record, subject to the reader's access.
If a reviewer returns the entry, update the reason when the accounting treatment changes. A corrected amount with an unchanged explanation can leave an otherwise valid journal difficult to understand. Review both the arithmetic and the narrative before posting.
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