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
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.
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.
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|
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:
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|
|Account #1020 - Accounts Receivable|
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.