Accountingverse.com
For All Things Accounting.

Posting Reference
What is posting reference?

Definition

Posting reference is a field that facilitates cross-referencing or interlinking between the journal and the ledger in the posting process. Posting reference columns are present in both the journal and the ledger.

Also known as: Folio

Purpose of the Posting Reference

The posting reference facilitates referencing between the journal and the ledger. It is used in the posting process. Posting refers to the act of transferring information from the journal to the ledger.

In the journal, the posting reference cites the account number to which the entry was posted. In the ledger, it indicates the source of the entry, i.e. which journal (some businesses maintain a general journal and several special journals) and sometimes in what page of that journal can the entry be found.

Posting Reference in the Journal

The posting reference (PR), sometimes folio (F), column in the journal usually comes after the particulars or description column. During the posting process, the account number of account found in the ledger is entered in this field.

Date Particulars PR Debit Credit
         
         

Posting Reference in the Ledger

In the ledger, two PR columns are found on each account – one after the particulars column of the debit side and one after that of the credit side. The source journal is placed in this field, e.g., GJ for general journal, SJ for sales journal, CRJ for cash receipts journal, etc. The page number may also be included (for example, GJ1, meaning page 1 of the general journal).

Account # - Account Title
Date Particulars PR Debit Date Particulars PR Credit
               
               

Example

On December 15, 2021, ABC Company collected $10,000 accounts receivable from its customers. After this transaction is recorded and posted, the journal entry would look like:

Date Particulars PR Debit Credit
12/15 Cash 1010 10,000  
  Accounts Receivable 1020   10,000

PR is filled with the account number of the respective account found in the ledger. In the ledger, the affected accounts would look like these. Assume it was recorded on page 5 of the general journal.

Account #1010 - Cash
Date Particulars PR Debit Date Particulars PR Credit
12/15 Collection GJ5 10,000        
               
Account #1020 - Accounts Receivable
Date Particulars PR Debit Date Particulars PR Credit
        12/15 Collection GJ5 10,000
               

Since the information came from the general journal, GJ is written in the PR fields. GJ5 indicates that the entry can be found on page 5 of the general journal.

Like and share!
Web link
APA format
Posting Reference - Accounting Dictionary (2022). Accountingverse.
https://www.accountingverse.com/dictionary/p/posting-reference.html
More Accounting Terms
> <
A c c o u n t i n g v e r s e
Your Online Resource For All Things Accounting
Based on international financial reporting standards,
and with references to US or local GAAP as needed
Copyright © 2010-2022