Sales journal definition
/What is a Sales Journal?
A sales journal is a subsidiary ledger used to store detailed sales transactions. Its main purpose is to remove a source of high-volume transactions from the general ledger, thereby streamlining it. The transaction number, account number, customer name, invoice number, and sales amount are typically stored in the sales journal for each sale transaction. When a transaction is recorded, the accounts receivable account is debited, while the sales account is credited.
The sales journal only stores receivables; this means that sales made in cash are not recorded in it. A sale made in cash would instead be recorded in the cash receipts journal. In short, the information stored in this journal is a summary of the invoices issued to customers.
Posting from the Sales Journal
At the end of each reporting period, the sum total of the debits and credits is posted to the general ledger. If anyone wants to research these posted balances listed in the general ledger, they refer back to the sales journal, and may use the invoice number listed in the sales journal to access a copy of the invoice.
When the Sales Journal is Used
The sales journal concept is mostly confined to manual accounting systems; it is not always used in computerized accounting systems.