# Journal entry explanation prompt: free ChatGPT template > Write a clear memo for a journal entry: what it records, why it was made, which accounts moved and what support backs it, ready for a reviewer. Source: https://learn.ynteractive.com/content/prompts/journal-entry-explanation-prompt · Updated 2026-10-02 · Free from Stepthrough (https://learn.ynteractive.com) [Reports and planning](https://learn.ynteractive.com/content/prompts#job-reports-and-planning) · [Accounting](https://learn.ynteractive.com/content/prompts#industry-accounting) · [Finance](https://learn.ynteractive.com/content/prompts#industry-finance) · Works in ChatGPT, Claude, Gemini and Copilot Updated October 2, 2026 · By [Robert Breen](https://learn.ynteractive.com/content/about) Use this when you have posted a journal entry that isn't routine, such as an accrual, a reclass or a correction, and a reviewer or auditor will ask what it was. Months later nobody remembers the reason, and "adjusting entry" explains nothing. This prompt takes the entry lines and your reasoning and writes a short memo that states what happened, which accounts moved and what document supports it. It writes the memo from what you tell it and will not make up a reason. **Have a professional review it.** This prompt helps you explain your own numbers, not give financial advice. Have your accountant or financial advisor review anything you will act on. ## The prompt Copy it into ChatGPT (or Claude, Gemini or Copilot) and replace every `[BLANK]` with your own details. It uses the four parts from [Prompt Writing 101](https://learn.ynteractive.com/content/prompt-writing-101-role-context-task-format): Role, Context, Task and Format. Copy prompt ```text Role: You are a bookkeeper writing a memo to attach to a journal entry for [REVIEWER]. Context: The entry is dated [ENTRY DATE]. The lines are: [ENTRY LINES]. The reason for it, in my words: [REASON]. The supporting documents are: [SUPPORT]. Related period or closing context: [PERIOD]. Task: Write the memo with four labeled lines: What this records, Why it was needed, Accounts affected (debit and credit, with amounts) and Support. Use my reason as written and do not add motives or facts I didn't give you. If the debits and credits don't balance, say so first. If the support list is empty, write "Support not yet attached" on that line. Format: Plain text, four labeled lines plus a one-sentence summary on top, under 150 words, no emoji. ``` ## Fill in the blanks **`[REVIEWER]`** Who will read the memo: a controller, a partner or an outside auditor. **`[ENTRY DATE]`** The date the entry is posted to. **`[ENTRY LINES]`** Each line with account name, debit or credit and amount. **`[REASON]`** Why you made it, in plain words. Be specific. **`[SUPPORT]`** Invoice, statement, schedule or email that proves it, or "none yet". **`[PERIOD]`** The month or year being closed and anything unusual about it. ## Example, filled in **A made-up example** from the free lesson [Build an AI Agent That Categorizes Business Expenses](https://learn.ynteractive.com/content/n8n-ai-agent-categorize-business-expenses-google-sheets). Maple Street Bookkeeping is the made-up bookkeeping firm from the finance lessons. A bookkeeper there moves an annual software payment into prepaid expenses. The amounts and vendor are invented. Copy example ```text Role: You are a bookkeeper writing a memo to attach to a journal entry for the firm's controller. Context: The entry is dated September 30. The lines are: debit Prepaid Software $1,100, credit Software Expense $1,100. The reason for it, in my words: we paid $1,200 on September 1 for a twelve-month subscription and booked all of it to expense, so I'm moving the eleven unused months to prepaid. The supporting documents are: the vendor invoice dated September 1 and the card statement line. Related period or closing context: September month-end close. Task: Write the memo with four labeled lines: What this records, Why it was needed, Accounts affected (debit and credit, with amounts) and Support. Use my reason as written and do not add motives or facts I didn't give you. If the debits and credits don't balance, say so first. If the support list is empty, write "Support not yet attached" on that line. Format: Plain text, four labeled lines plus a one-sentence summary on top, under 150 words, no emoji. ``` ## What a good answer looks like - A top sentence a reviewer can read alone: "Moves eleven months of a software subscription from expense to prepaid." - Both accounts shown with $1,100 on each side. - The reason repeated in your words, with no added claims about policy or approvals. - Support named exactly: the invoice and the statement line. ## How to check it before you use it An AI draft can sound right and still say something you never told it. Use the habit from the [Reply Faster lesson](https://learn.ynteractive.com/content/chatgpt-reply-to-customer-emails): check every promise, name, date and number against what you gave it before anything goes out. - Compare the amounts with the posted entry in your books, line by line. - Ask whether the reason is the true one. A tidy memo for a wrong reason is worse than no memo. - Check that the accounts exist in your [chart of accounts](https://learn.ynteractive.com/content/glossary/chart-of-accounts) under those names. - Attach the memo to the entry in your accounting system and keep the support next to it. ## Why this prompt works A memo written at posting time costs two minutes. Rebuilding the story at audit time costs an afternoon, and the gaps get filled with guesses. ## Practice it in the free lesson **[Prompt Writing 101: Role, Context, Task, Format](https://learn.ynteractive.com/content/prompt-writing-101-role-context-task-format)**: Ask ChatGPT for the same customer email twice, once vaguely and once with a four-part prompt, and see exactly why structure gets a better answer. You do every step yourself in a practice copy of ChatGPT, and nothing touches your real accounts. [Start the free lesson](https://learn.ynteractive.com/modules/prompt-writing-101) Also useful: [Build an AI Agent That Categorizes Business Expenses](https://learn.ynteractive.com/content/n8n-ai-agent-categorize-business-expenses-google-sheets) ## Terms used here [Closing the books](https://learn.ynteractive.com/content/glossary/closing-the-books) · [Chart of accounts](https://learn.ynteractive.com/content/glossary/chart-of-accounts) · [Audit trail](https://learn.ynteractive.com/content/glossary/audit-trail) · [Source of truth](https://learn.ynteractive.com/content/glossary/source-of-truth) ## Related prompts - [Month-end close checklist prompt](https://learn.ynteractive.com/content/prompts/month-end-close-checklist-prompt): Turn your rough month-end close notes into an ordered, day-by-day checklist with an owner and a "done when" for every step. 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