> ## Documentation Index > Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt > Use this file to discover all available pages before exploring further. # Journal Entries > Journal entries are the accounting records behind Arcus activity. Most entries are posted automatically by orders, invoices, payments, inventory, purchasing, AP, returns, bank reconciliation, and settings-driven accounting workflows. Manual journal entries are for accounting adjustments, accruals, corrections, and review work. Routine operations should usually be handled in their source module so the subledger, inventory, payments, and audit trail stay aligned. ## Open Journal Entries Open **Accounting**, then **Journal Entries**. The list shows posted, draft, pending approval, rejected, and voided entries. Use search, status filters, source links, and entry dates to find the accounting event you need. Journal Entries page with status KPI cards, search, filters, posted journal entries, source links, debit totals, and credit totals ## Automatic Entries Arcus posts many journal entries without a user opening this page. Common examples include: * **Invoice posted**: receivables and revenue are updated. * **Payment received**: cash or clearing accounts and receivables are updated. * **Order fulfilled**: inventory and cost of goods sold are updated. * **Inventory adjusted or received**: inventory value and offset accounts are updated when accounting is enabled. * **Vendor bill recorded**: expense, inventory, GRNI, and payable accounts may be updated. * **Bill payment or check written**: cash and payable accounts are updated. * **Bank reconciliation adjustment**: cash and selected GL accounts can be updated. **Use the source module first** If the entry came from an order, AP bill, inventory transaction, bank reconciliation, or return, investigate the source record before posting a manual correction. ## Create a Manual Journal Entry 1. Open **Accounting > Journal Entries**. 2. Click **New Journal Entry**. 3. Choose the entry date and add a clear description. 4. Add at least two lines. 5. Select the GL account for each line. 6. Enter either a debit or a credit amount on each line. 7. Confirm total debits equal total credits. 8. Click **Post Journal Entry**, then follow the approval workflow when approval is required. New Journal Entry form with entry date, description, journal entry lines, GL account pickers, debit amounts, credit amounts, and post action ## What Happens When You Post * **Balanced entry and no approval required**: the entry posts immediately and appears in balances, ledgers, and reports. * **Approval required**: the entry is saved as pending approval and does not affect reports until it is approved. * **Approval bypass configured**: authorized accounting roles may post without waiting for a second approval. * **Closed period**: Arcus blocks posting into a closed period. The form may suggest the next open period. * **Controlled account warning**: entries that touch receivables, payables, inventory, or other system-controlled accounts require extra review. **Pending approval means no financial impact yet** A pending journal entry is visible for review, but it is not included in account balances, account ledger totals, period close totals, or financial reports until an approver posts it. ## Approval and Posting Your entity settings can require approval before manual entries post. When approval is required, the entry can sit in a pending state until an authorized reviewer approves, rejects, or asks for changes. Posted entries affect balances and financial reports. * **Draft**: saved work that does not affect GL balances. * **Pending Approval**: waiting for an authorized reviewer. * **Posted**: included in account balances and financial reports. * **Rejected**: not posted. Review the reason and create a corrected entry if needed. * **Voided or reversed**: retained for audit history while correcting the financial effect. ## Approve Or Reject A Pending Entry 1. Open **Accounting > Journal Entries**. 2. Filter to **Pending Approval** when needed. 3. Open the entry and review the description, source, date, lines, and attachments or notes. 4. Click **Approve and Post** when the entry is correct. 5. Click **Reject Entry** when it should not post, then enter the reason. Approval posts the entry immediately. Rejection keeps the entry out of the GL and preserves the reviewer reason for audit history. **Be careful with subledger accounts** Posting directly to receivables, payables, inventory, tax, clearing, or undeposited funds can make the GL disagree with source records. Use the source workflow whenever possible. ## Reverse a Posted Entry Posted entries should be corrected with a reversal and a new corrected entry, not by changing the original lines. A reversal flips the debit and credit lines while preserving the original record for audit history. 1. Open the posted journal entry. 2. Click **Reverse** when the action is available. 3. Enter a reason when your team needs one for review. 4. Confirm **Create Reversal**. 5. Post a corrected entry if the financial event still needs to be recorded differently. A reversal creates a new offsetting journal entry, marks the original as reversed, and keeps both records visible in the audit trail. Arcus does not let you reverse an entry that is itself a reversal or an entry that has already been reversed. ## Common Blocks * **Entry will not post**: total debits and credits do not match. * **Account is missing**: confirm the GL account is active and allowed for the workflow. * **Period is closed**: choose an open period or ask accounting to reopen the period according to policy. * **Approval is required**: wait for an authorized approver or update the manual journal approval settings. * **Approval action is unavailable**: confirm the entry is still pending approval and that your role can approve manual journal entries. * **Reverse action is unavailable**: the entry may not be posted, may already be reversed, or may itself be a reversing entry. * **System-account warning appears**: confirm the entry should really affect that controlled account. ## Related Articles Understand account structure, account types, and posting behavior. Review transaction history, source activity, debits, credits, and running balance for one GL account. Compare control accounts to subledgers, review clearing account health, and audit GL integrity check logs. Run balance sheet, profit and loss, cash flow, and operational reports. Match bank transactions to payments, deposits, payouts, and checks. Close, approve, reopen, and audit accounting periods with pre-close checklist controls. Track stock, locations, reorder points, and inventory movement history.