Capability template for finance and accounting
Journal entry preparation
At month end, your bookkeeper hands the controller every proposed journal entry ready to review: balanced lines on accounts from your own chart, the arithmetic and the document behind each amount, whether it reverses, and who approves it. Nothing is posted until a person approves.
Listed under
Add it to a workflow in the Fully Powered Planner, beside the teams and roles that will run it. Book a fit call
The outcome
The manual entries of the close arrive at the controller's desk as a package instead of a pile. Each one has its lines, a memo that will still make sense to an auditor next year, the calculation that produced the amount, and the document that proves it. Accruals, prepaid releases, depreciation, deferred revenue and corrections all come out in the same shape, so review becomes reading, not reconstructing.
The package also catches the mistakes that cost a second close. An accrual for a bill that has already been posted. An account that is not in the chart, or has been retired. A correction booked as a net difference instead of a clean reversal. An accrual left standing into next month, where the real bill will land on top of it. A round number with nothing behind it. Each arrives as a hold or a flag, with a question for the person who can answer it.
Your team still decides. The capability prepares and checks; the controller reviews, the right person approves, and someone on your team posts the entries.
Who starts the work, and when
The bookkeeper or staff accountant starts it at month end, once the requests for manual entries are gathered from the schedules, the open purchase orders, the contracts and the notes from project leads. It runs again for a request that arrives late, or when a hold is cleared.
The controller reviews every entry. The person your approval limits name for its amount and kind approves it, such as a finance director for larger entries or for any correction of a closed month.
What they supply
- The list of entries wanted: for each, what it records, its kind, the accounts, where the amount comes from, the documents behind it, and whether it reverses.
- The chart of accounts, exported as it stands, so every account can be checked.
- What is already posted this month in the revenue and expense accounts the requests use, so nothing is booked twice.
- The supporting documents: prepaid and deferred revenue schedules, the asset register, contract or order extracts, bills, and for a correction the original entry.
- A few settings: the period, who prepares, reviews, approves and posts, your approval limits and when depreciation starts on a new asset.
Files and a short list are enough. It needs no connection to your accounting system, and it never asks for a password or a login code.
What comes out
One package for the period, in a fixed order:
- A summary: how many entries are ready for review, how many are held and why, how many need no entry, and the totals of what is ready.
- One block per entry: its status, its lines with totals, its memo, the calculation with the source of each figure, what was already booked, its support, the checks it passed, any flags, and who approves it.
- The questions, each addressed to a named role with the figures it is about.
- A sign-off line for the reviewer and the approver of every entry.
A good package lets the controller follow any amount from a line back to the document it came from, without asking anyone.
An invented example
Illustrative example with invented data. The studio, its suppliers and customers, every account, document and figure below are invented. Harrow Lane Studio is an invented 30-person brand and product design studio. Its staff accountant prepares the October 2026 entries; its controller reviews them, and its finance director approves the larger ones. People are referred to by role, suppliers and customers by letter.
The inputs come first, in full, so the template can be run on them. The package the capability should return follows; the trial record published with it shows what one run actually produced.
The inputs
1. Settings
Organization: Harrow Lane Studio.
Period: October 2026, 1 to 31 October 2026. Status: open.
September 2026: closed.
Package prepared: Monday 2 November 2026.
Prepares entries: staff accountant. Reviews: controller.
Posts approved entries and sets up reversals: staff accountant.
Approval limits: entries up to $10,000.00, controller; entries above
$10,000.00, finance director; any correction of an entry in a closed
period, finance director, whatever the amount.
Depreciation start rule: depreciation starts in the first full calendar
month an asset is in service.
Questions about freelance and project costs: studio lead.
Questions about accounting treatment: controller.
(No round-amount size, entry date or reversal date given.)
2. Entry request list
Ref,What it records,Kind,Debit,Credit,Basis,Support,Reverses
R1,IT support contractor October services; invoice not yet received,accrual,6420,2150,Monthly fee per agreement,S1,No
R2,October share of the annual insurance premium,prepaid release,6310,1410,Per prepaid schedule,S2,No
R3,October depreciation on computer equipment,depreciation,6510,1590,Per asset register,S3,No
R4,October share of the Client K retainer billed in advance,deferred revenue release,2300,4100,Per billing record,S4,No
R5,Software subscription posted to IT services in September,correction,6430,6420,Reverse JE-0917 and enter it on the right account,S5,No
R6,Freelance photographer for the October shoot; invoice not yet received,accrual,6260,2150,Estimate 2500.00,Email from the studio lead,Yes
R7,Utility U October electricity; bill not yet received,accrual,6440,2150,640.00 per last month's bill,S6,Yes
3. Chart of accounts export
Account,Name,Type,Status
1010,Operating bank,Asset,Active
1410,Prepaid expenses,Asset,Active
1510,Computer equipment,Asset,Active
1590,Accumulated depreciation,Asset,Active
2000,Accounts payable,Liability,Active
2150,Accrued expenses,Liability,Active
2300,Deferred revenue,Liability,Active
4100,Fee revenue,Revenue,Active
6260,Freelance production,Expense,Active
6310,Insurance,Expense,Active
6420,IT services,Expense,Active
6430,Software subscriptions,Expense,Active
6440,Utilities,Expense,Active
6450,Telephone,Expense,Inactive
6510,Depreciation,Expense,Active
4. Posted lines this period (revenue and expense accounts named on the requests)
Date,Entry,Account,Memo,Amount
2026-10-01,JE-0931R,6420,Reversal of JE-0931: Supplier T September support accrual,-4200.00
2026-10-05,BILL-1031,6420,Supplier T September support,4200.00
2026-10-14,BILL-1037,6430,Software vendor M monthly seats,312.00
2026-10-30,BILL-1043,6440,Utility U October electricity,640.00
5. Supporting documents
S1. IT support agreement with Supplier T (extract)
Services: helpdesk and device management for the studio.
Fee: $4,200.00 a month, invoiced in arrears by the 5th of the following
month.
October service log from Supplier T, sent 30 October 2026: 27 tickets
closed; on-site visits on 8 and 22 October.
S2. Prepaid schedule (extract)
Item: business insurance policy, annual premium.
Paid: 1 August 2026. Amount: $9,600.00.
Covers: 1 August 2026 to 31 July 2027, 12 months. Monthly: $800.00.
Released to 30 September 2026: $1,600.00.
S3. Asset register, computer equipment (extract)
Asset,Description,In service,Cost,Residual,Life (months),Accumulated to 30 Sep 2026,Method
CE-01,Design workstations (8),2025-03-01,19200.00,0.00,48,7600.00,Straight line
CE-02,Laptops (12),2026-02-01,21600.00,0.00,36,4800.00,Straight line
CE-03,Large-format plotter,2026-10-20,6300.00,300.00,60,0.00,Straight line
CE-04,File server,2021-09-01,4800.00,0.00,48,4800.00,Straight line
S4. Billing record
Invoice INV-2207 to Client K, dated 1 October 2026, $18,000.00.
Retainer for brand design services, October to December 2026, in three
equal months. Posted at billing to 2300 Deferred revenue.
S5. Posted entry JE-0917, dated 18 September 2026
Dr 6420 IT services 1,188.00
Cr 2000 Accounts payable 1,188.00
Memo: Supplier P rendering software, September usage. Invoice P-0918.
S6. Utility U bill for September 2026
Service period 1 to 30 September 2026. Amount due: $640.00.
The package
JOURNAL ENTRIES FOR REVIEW: Harrow Lane Studio, October 2026
For: controller. Prepared by: staff accountant on 2 November 2026. Entry date: 31 October 2026. Reversal date: 1 November 2026.
Sources: entry requests, 7; chart of accounts, 15 accounts; posted lines this period, 4; supporting documents, 6: S1, S2, S3, S4, S5, S6.
Settings used: round-amount size $500.00; depreciation start rule: first full calendar month an asset is in service; approval limits: as supplied. Defaults used: round-amount size; entry date; reversal date.
SUMMARY
Requests: 7. Ready for review: 5 (R1, R2, R3, R4, R5). Held: 1 (R6). No entry needed: 1 (R7).
Ready for review: debits $14,376.00, credits $14,376.00.
Entries flagged: 3 (R1, R5, R6). Questions: 3.
ENTRY R1: IT support contractor October services; invoice not yet received
Status: Ready for review.
Kind: accrual. Date: 31 October 2026. Reverses: no.
Lines:
Dr 6420 IT services $4,200.00
Cr 2150 Accrued expenses $4,200.00
Totals: debits $4,200.00, credits $4,200.00.
Memo: October 2026: IT support from Supplier T for October, invoice not yet received. Per S1.
Calculation: monthly fee $4,200.00 (S1). Already booked $0.00. $4,200.00 - $0.00 = $4,200.00.
Already booked this period: none. Not counted: JE-0931R (-$4,200.00) and BILL-1031 ($4,200.00) in 6420, both for September's service.
Support: S1: the agreement with Supplier T sets a fee of $4,200.00 a month, invoiced in arrears; its October service log shows 27 tickets closed and visits on 8 and 22 October.
Checks: balanced yes; one side per line, no negative amounts yes; accounts in the chart and active yes; accounts fit the kind yes.
Flags: accrual not set to reverse: the request says No, while last month's accrual for the same supplier, JE-0931, reversed on 1 October (JE-0931R).
Approver: controller, under the limit for entries up to $10,000.00. Posted by: staff accountant, after approval.
ENTRY R2: October share of the annual insurance premium
Status: Ready for review.
Kind: prepaid release. Date: 31 October 2026. Reverses: no.
Lines:
Dr 6310 Insurance $800.00
Cr 1410 Prepaid expenses $800.00
Totals: debits $800.00, credits $800.00.
Memo: October 2026: one month of the business insurance premium paid on 1 August 2026. Per S2.
Calculation: premium $9,600.00 / 12 months (1 August 2026 to 31 July 2027) = $800.00 (S2). Released to 30 September $1,600.00; after October $2,400.00; remaining $7,200.00. Already booked $0.00. $800.00 - $0.00 = $800.00.
Already booked this period: none.
Support: S2: the prepaid schedule line for the business insurance policy.
Checks: balanced yes; one side per line, no negative amounts yes; accounts in the chart and active yes; accounts fit the kind yes.
Flags: none.
Approver: controller, under the limit for entries up to $10,000.00. Posted by: staff accountant, after approval.
ENTRY R3: October depreciation on computer equipment
Status: Ready for review.
Kind: depreciation. Date: 31 October 2026. Reverses: no.
Lines:
Dr 6510 Depreciation $1,000.00
Cr 1590 Accumulated depreciation $1,000.00
Totals: debits $1,000.00, credits $1,000.00.
Memo: October 2026: depreciation on computer equipment, assets CE-01 to CE-04. Per S3.
Calculation: CE-01 ($19,200.00 - $0.00) / 48 = $400.00. CE-02 ($21,600.00 - $0.00) / 36 = $600.00. CE-03 in service 20 October 2026; under the start rule its first month is November: $0.00. CE-04 accumulated $4,800.00 equals cost less residual, fully depreciated: $0.00. Total $1,000.00. Already booked $0.00. $1,000.00 - $0.00 = $1,000.00.
Already booked this period: none.
Support: S3: the asset register extract for computer equipment, four assets.
Checks: balanced yes; one side per line, no negative amounts yes; accounts in the chart and active yes; accounts fit the kind yes.
Flags: none.
Approver: controller, under the limit for entries up to $10,000.00. Posted by: staff accountant, after approval.
ENTRY R4: October share of the Client K retainer billed in advance
Status: Ready for review.
Kind: deferred revenue release. Date: 31 October 2026. Reverses: no.
Lines:
Dr 2300 Deferred revenue $6,000.00
Cr 4100 Fee revenue $6,000.00
Totals: debits $6,000.00, credits $6,000.00.
Memo: October 2026: one month of Client K's retainer billed in advance on INV-2207. Per S4.
Calculation: INV-2207 $18,000.00 / 3 months (October to December 2026) = $6,000.00 (S4). Already booked $0.00. $6,000.00 - $0.00 = $6,000.00.
Already booked this period: none.
Support: S4: the billing record for INV-2207, a retainer for October to December 2026 in three equal months, posted at billing to 2300.
Checks: balanced yes; one side per line, no negative amounts yes; accounts in the chart and active yes; accounts fit the kind yes.
Flags: none.
Approver: controller, under the limit for entries up to $10,000.00. Posted by: staff accountant, after approval.
ENTRY R5: Software subscription posted to IT services in September
Status: Ready for review.
Kind: correction. Date: 31 October 2026. Reverses: no.
Lines:
Part A, reversing JE-0917 in full:
Dr 2000 Accounts payable $1,188.00
Cr 6420 IT services $1,188.00
Part B, as it should have been:
Dr 6430 Software subscriptions $1,188.00
Cr 2000 Accounts payable $1,188.00
Totals: debits $2,376.00, credits $2,376.00.
Memo: October 2026: corrects JE-0917 of 18 September 2026, Supplier P rendering software for September, invoice P-0918, posted to IT services instead of Software subscriptions. Per S5.
Calculation: JE-0917 carries $1,188.00 on each side (S5). Part A reverses both lines; Part B enters $1,188.00 on 6430. Already booked $0.00. Total $2,376.00 each side.
Already booked this period: none. No posted line this period refers to JE-0917 or Supplier P. Not counted: BILL-1037 in 6430, Software vendor M, a different supplier.
Support: S5: posted entry JE-0917 with its memo naming Supplier P's invoice P-0918 for September usage.
Checks: balanced yes; one side per line, no negative amounts yes; accounts in the chart and active yes; accounts fit the kind yes: Parts A and B net to Dr 6430, Cr 6420, as requested.
Flags: corrects a closed period: JE-0917 is dated 18 September 2026, and September is closed.
Approver: finance director, under the rule for any correction of an entry in a closed period. Posted by: staff accountant, after approval.
ENTRY R6: Freelance photographer for the October shoot; invoice not yet received
Status: Held: support named but not supplied.
Kind: accrual. Date: 31 October 2026. Reverses: on 1 November 2026.
Lines:
Dr 6260 Freelance production $2,500.00
Cr 2150 Accrued expenses $2,500.00
Totals: debits $2,500.00, credits $2,500.00.
These lines are as requested and are not ready for review.
Memo: October 2026: freelance photographer for the October shoot, invoice not yet received. Per email from the studio lead (not supplied).
Calculation: estimate $2,500.00, as given on the request; estimate, no calculation supplied. Already booked $0.00. $2,500.00 - $0.00 = $2,500.00.
Already booked this period: none.
Support: named but not supplied: "Email from the studio lead".
Checks: balanced yes; one side per line, no negative amounts yes; accounts in the chart and active yes; accounts fit the kind yes.
Flags: round estimate: $2,500.00 is a whole multiple of $500.00 with no calculation behind it.
Approver: controller, under the limit for entries up to $10,000.00, once the hold is cleared. Posted by: staff accountant, after approval.
ENTRY R7: Utility U October electricity; bill not yet received
Status: No entry needed: already booked in full by BILL-1043.
Kind: accrual. Date: 31 October 2026. Reverses: not applicable, no entry.
Lines: none.
Memo: none.
Calculation: request $640.00, from last month's bill (S6). Already booked $640.00 (BILL-1043). $640.00 - $640.00 = $0.00.
Already booked this period: BILL-1043, 30 October 2026, $640.00, "Utility U October electricity".
Support: S6: Utility U's bill for 1 to 30 September 2026, $640.00.
Checks: balanced not run, no lines; one side per line, no negative amounts not run, no lines; accounts in the chart and active yes; accounts fit the kind yes.
Flags: none.
Approver: not needed. Posted by: not needed.
QUESTIONS
1. For controller: R1, the $4,200.00 accrual for Supplier T's October support is set not to reverse, while last month's accrual for the same supplier reversed on 1 October (JE-0931R); should this one reverse on 1 November 2026?
2. For controller: R5 corrects JE-0917, $1,188.00 dated 18 September 2026 in a closed period, by reversing it in full and entering it on 6430 Software subscriptions on 31 October 2026; is a correction in October the treatment you want?
3. For studio lead: R6, the $2,500.00 accrual for the photographer's October shoot is a round estimate and its support, your email, was not supplied; can you send the email with the agreed fee, or the day rate and the days worked?
SIGN-OFF
R1: Reviewed by ____________ Date ______ Approved by ____________ Date ______
R2: Reviewed by ____________ Date ______ Approved by ____________ Date ______
R3: Reviewed by ____________ Date ______ Approved by ____________ Date ______
R4: Reviewed by ____________ Date ______ Approved by ____________ Date ______
R5: Reviewed by ____________ Date ______ Approved by ____________ Date ______
Prepared for review. Nothing has been posted, approved, reversed or sent.
How the figures trace: the $14,376.00 ready for review is R1 $4,200.00 + R2 $800.00 + R3 $1,000.00 + R4 $6,000.00 + R5 $2,376.00. R6 is held until the studio lead's email arrives, so its $2,500.00 is not in that total. R7 needs no entry because Utility U's October bill, BILL-1043, was posted on 30 October for the same $640.00. Plotter CE-03 starts depreciating in November under the studio's start rule, and file server CE-04 was fully depreciated before October.
Where it fits
- Finance and accounting, which owns the close and every entry in it.
- Professional services, where retainers billed in advance and contractor work not yet invoiced make deferred revenue and accruals a monthly routine.
- Software and technology, where subscriptions are billed ahead and released month by month, and the equipment register keeps growing.
- Manufacturing, where depreciation on plant and accruals for goods received but not billed are large enough that an error moves the month.
- Established businesses, where the entries have been made the same way for years by one person and should be checkable by anyone.
- Growth & scaling, when the number of manual entries outgrows the time one reviewer has at month end.
What has to change for your company
- Your exports. The column names your accounting system produces. If a heading does not match, it stops and asks rather than guessing.
- Your kinds of entry. The capability knows accruals, prepaid releases, depreciation, deferred revenue, reclassifications and corrections. Add your own, such as payroll accruals, with the accounts each should use.
- Your approval limits. Who approves which amounts, and who approves a correction of a closed month.
- Your rules. When depreciation starts on a new asset, the dates entries and reversals carry, and the round figure that should make a reviewer ask how an estimate was reached.
- Your roles. Who prepares, reviews, approves and posts, and who answers questions about suppliers, customers and accounting treatment.
- Your platform. It runs in ChatGPT, Claude, Copilot or Gemini, from files you supply. Decide which exports the assistant may read and where approved packages are kept.
What has been checked
Fully Powered AI wrote this capability template. It was editorially reviewed on 10 November 2026. It was tried on its invented example on 9 November 2026 in two runs: the instructions were revised after the first, and the record of the second is published with it. Neither run reached the stop conditions. It has not yet been tested in a client environment, and it has not yet been tested as a packaged version in ChatGPT, Claude, Copilot or Gemini.
Testing in your environment means running it on two or three past months whose entries your controller already approved, plus hard cases written in advance, each with the expected result: an accrual for a bill already posted, an account retired from the chart, a correction of a closed month, an asset placed in service mid-month, a heading the template does not recognize. The controller compares every line with the approved entries before anyone relies on it. Pilot acceptance-test preparation sets those cases up, and what we test before we call an AI workflow ready describes the record we keep.
The full capability template
Everything above is the outline. The complete capability template is the working version: the roles, the inputs, the procedure, the exceptions and stop conditions, the output format, the reviewer checklist, the acceptance tests, the instructions for an AI assistant and what to customize for your company. It comes with a download and the link to its folder in Fully Powered’s public repository.
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Next step
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Build this in a sprint
In a sprint, Fully Powered adapts this capability template to your rules, proves it on your own work and puts it in the hands of the roles that own it.
Two ways to begin: