Posting is the step that moves a journal entry into the ledger. The entry is recorded chronologically in the journal first; posting applies its debits and credits to the relevant accounts.
What it means
A journal entry on its own does not change any account balance - it just records what happened. Posting is what carries the amounts through to the ledger, where each affected account's running total is updated. In manual systems this was a separate clerical step; in software it happens automatically when an entry is saved.
Where it fits in
When a payroll journal is created, posting it updates the salary expense, bank and liability accounts in the ledger. Until posted, the pay run is recorded but not reflected in the account balances or the financial statements.
Key rules
- Transfers journal entries into the ledger accounts.
- Updates each affected account's running balance.
- Separate from recording the entry in the journal.
- Automatic in accounting software, once an entry is saved.
