Who is authorized to approve an AJE?

Approval authority is defined by company policy and should be linked to role-based limits. Use delegated approvers only when documented in authorization matrices to preserve segregation of duties.

What supporting documents are required?

At minimum include the invoice, reconciliation, calculation workpaper, or contract excerpt supporting the adjustment. Lack of evidence commonly results in auditor exceptions and requests for additional documentation.

Can AJEs be e-signed and accepted?

Electronic signatures meet U.S. legal standards when intent, consent, attribution, and retention are demonstrable under ESIGN and UETA; ensure your workflow captures these elements.

How should reversing entries be handled?

Mark the entry as reversing and provide a reversal date; automation should create the offset entry to avoid manual errors and maintain clear period reporting.

What if an entry posts to the wrong period?

Prepare a corrective adjusting entry with a clear explanation and attach supporting calculations; document timing differences and communicate impacts to stakeholders.

How long must AJEs and backup be retained?

Retain AJEs per company policy, typically at least three years for IRS purposes and longer for industry-specific rules; map retention to regulatory citations such as IRC and sector guidance.

Electronic Signature
Templates
Miscellaneous
Business AJEs Template

Business AJEs Template

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS AJES TEMPLATE

This Business AJEs Template Agreement (the "Agreement") is made as of Agreement Date: between Company Name: (the "Company") and Service Provider Name: (the "Provider"). The parties agree as follows:

WHEREAS

WHEREAS, the Company requires preparation, documentation and approval of adjusting journal entries ("AJEs") to present its financial statements in accordance with applicable accounting policies; and

WHEREAS, the Provider has represented that it has the requisite accounting expertise to prepare, support and deliver AJEs, including supporting schedules, narrative explanations and documentation sufficient for internal review and external audit; and

WHEREAS, the parties desire to set forth the terms under which AJEs will be prepared, reviewed, approved and remediated.

SCOPE OF WORK

Services to Be Provided:

Provider shall prepare AJEs that include journal entry lines, supporting schedules, narrative justification, source documentation references and proposed approval routing. Provider shall (a) quantify the journal impact to financial statement line items, (b) provide account analysis supporting the adjustment, and (c) deliver working papers sufficient for review by the Company's accounting and audit teams.

AJES LOG / ENTRY DETAIL

Use the table below to record each adjusting journal entry. Each entry must reference supporting documentation and be approved in accordance with the Approval Certification section.

Entry Date	Journal Ref.	Account Debited	Account Credited	Debit	Credit	Preparer	Reviewer	Approved

Supporting Narrative / Description for Selected AJEs:

PAYMENT TERMS

Company shall pay Provider for services rendered under this Agreement in accordance with the terms below. Fees are exclusive of taxes unless otherwise stated.

Total Fee (per engagement or period): Payment Schedule / Milestones: Late Payment Fee:

Invoices not paid within the agreed payment period shall accrue the late payment fee specified above on a monthly basis until paid in full. Provider reserves the right to suspend services for accounts not brought current following 30 days' written notice.

TERM AND TERMINATION

This Agreement commences on Start Date: and shall continue until End Date: unless earlier terminated in accordance with this section.

Notice Period for Termination (days):

Either party may terminate this Agreement for material breach if the breaching party fails to cure the breach within the notice period specified above. Termination for convenience requires the non-terminating party to be provided the same notice period and to be compensated for work completed through the effective date of termination.

CONFIDENTIALITY

Each party shall maintain in confidence all non-public information disclosed by the other party in connection with this Agreement that is identified as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure ("Confidential Information"). Confidential Information includes, but is not limited to, non-public financial data, client lists, internal accounting workpapers and audit documentation.

The receiving party shall not disclose Confidential Information to any third party except to those employees, contractors or advisors with a need to know who are bound by confidentiality obligations at least as protective as those set forth herein. Confidential Information shall not include information that: (a) is or becomes publicly available without breach of this Agreement, (b) was rightfully in the receiving party's possession without restriction prior to disclosure, or (c) is independently developed without use of the disclosing party's Confidential Information.

Acknowledgment of Confidentiality Obligations:

I acknowledge and agree that I have read and will comply with the confidentiality obligations set forth in this Agreement.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles. Venue for any dispute arising under this Agreement shall be the state or federal courts located within that state, and each party consents to exclusive jurisdiction therein.

ENTIRE AGREEMENT

This Agreement, including any attachments and the AJEs recorded hereunder, constitutes the entire agreement between the parties relating to its subject matter and supersedes all prior and contemporaneous agreements, representations and understandings, whether written or oral. Any amendment or modification of this Agreement must be in writing and signed by authorized representatives of both parties.

APPROVAL CERTIFICATION

By signing below, each signatory certifies that: (a) the AJEs recorded above were prepared in accordance with the Company's accounting policies; (b) supporting documentation has been provided and retained; and (c) the signatory has the requisite authority to bind the respective party.

Company:

By:

Date:

Title:

Provider:

By:

Date:

Title:

What the Business AJEs Template Is and When It Applies

A Business AJEs Template is a standardized adjusting journal entry form used by accounting teams to record period-end corrections, allocations, accruals, and reclassifications. It captures date, reference number, debit and credit account lines, amounts, narrative explanation, supporting documents, preparer and approver details, and any reversing instruction to maintain an auditable trail for internal control and external review.

Why a Structured AJEs Template Matters

Using a consistent AJEs Template reduces posting errors, supports clear approvals, and provides auditors and controllers with the documentation needed to validate adjustments during close and audit cycles.

Typical Users and Roles for a Business AJEs Template

The template is used by accounting and finance staff across operational and control functions.

Staff accountants who prepare journal entries and attach supporting invoices, reconciliations, or schedules for review.
Controllers and finance managers who review, approve, and ensure entries align with accounting policy and period close.
External auditors and internal audit teams who inspect AJEs for sufficiency of documentation and reasonableness during audits.

Different stakeholders rely on the template for posting accuracy, audit evidence, and management reporting.

Essential Elements to Include in a Professional AJEs Template

A complete template combines structured fields, required attachments, approval routing, audit metadata, and version control to support reliable month-end close and audit readiness.

Structured Fields

Line-level debit and credit rows with account code, cost center, and currency to ensure automated posting and accurate GL mapping.

Narrative Explanation

Concise description of reason, calculation basis, and reference to supporting schedules so reviewers can verify the purpose and amount.

Supporting Attachments

Space to attach invoices, reconciliations, and spreadsheets to create an auditable evidence bundle for each AJE.

Approval Workflow

Role-based approver fields, approval timestamps, and delegated authorization rules to document control signoffs.

Reversing Entry Option

A checkbox and reversal date field for temporary accruals to automate post-period reversal where appropriate.

Audit Metadata

System-captured audit trail showing preparer, approver, IP address, and timestamps to support compliance and forensic review.

Step-by-Step: Prepare and Process an AJE

Follow these steps to prepare, validate, and post an adjusting journal entry while maintaining an auditable record.

01

Prepare: Gather source documents, compute amounts, and draft the narrative explanation for reviewer clarity.
02

Enter: Populate template fields, ensure debits equal credits, and attach supporting files using required file naming.
03

Review: Reviewer checks account coding, rationale, and supporting schedules for sufficiency before approving.
04

Approve and Post: Authorized approver signs, records approval metadata, and posts the entry to the general ledger.

How Electronic AJEs Flow Through a Finance Workflow

A typical electronic AJEs workflow creates a single source of truth from preparation through ledger posting with enforced controls.

Upload Document: Preparer uploads the filled template and attaches supporting evidence for the entry.
Route for Approval: System routes the entry to designated approvers based on amount, function, or cost center.
Audit Capture: Approval actions and timestamps are recorded to an immutable audit trail for compliance.
Ledger Posting: After approval, the entry posts to the GL with a reference back to the supporting evidence.

Configuring an Electronic AJEs Workflow

Key configuration settings determine validation, routing, and automated controls for reliable AJEs processing.

Field	Configuration
Approval Thresholds	Set dollar limits and multiple approver levels to enforce segregation of duties.
Mandatory Attachments	Require specified document types (invoice, reconciliation) before allowing submission.
Automated Reversals	Enable scheduled reversing entries for accruals with defined reversal dates.
Audit Logging	Capture preparer, approver, timestamps, and IP address for every action.

Technical Considerations for Online AJEs Processing

Confirm the platform supports secure attachments, role-based approvals, and an immutable audit trail before moving AJEs online.

File Formats: PDF, XLSX, CSV supported
Integrations: ERP connectors (NetSuite, Oracle)
Authentication: SAML/SSO and MFA

Key Deadlines and Close-Related Dates

Track AJE deadlines against your corporate close calendar, tax reporting, and external reporting cycles to avoid restatements or late filings.

Month-End Cutoff:

Submit AJEs within three business days of month-end for inclusion in that close period.

Quarter-End Review:

Finalize and approve AJEs before quarter close consolidation and financial statement preparation.

Year-End Adjustments:

Complete final AJEs before fiscal year closing and audit fieldwork starts.

Tax Reporting:

Ensure tax-basis adjustments align with filings due to IRS deadlines to avoid mismatch penalties.

External Audit Requests:

Provide completed AJEs and support no later than auditor request dates to avoid rolling audit fees.

Milestones in the AJE Lifecycle

AJE processing follows discrete milestones from preparation through archival to maintain control and traceability.

01

Drafting

Preparer compiles calculations and uploads supporting evidence for initial submission.

02

Internal Review

Supervisor or reconciliation owner validates amounts, account selection, and adequacy of support.

03

Management Approval

Authorized approver signs off and records approval metadata for audit evidence.

04

Posting and Archival

Entry posts to the GL and the supporting bundle is archived with retention metadata.

Common Errors That Cause Audit Exceptions

Missing supporting documents or unclear narratives that leave auditors unable to verify the basis of an adjustment.
Incorrect account codes or cost center allocation that lead to material misstatements or misclassified expenses.
Entries posted in the wrong accounting period, requiring restatements or journal reversals during audit cleanup.
Approvals that lack documented authority or are completed after posting, failing segregation of duties controls.

Risks and Consequences of Inadequate AJEs

Financial Misstatement: Restatements and regulator scrutiny

Tax Exposure: Incorrect tax returns and penalties

Audit Findings: Increased audit fees and control deficiencies

Internal Control Weakness: Failed SOX testing for public companies

Operational Disruption: Delayed close cycles and reporting

Reputational Risk: Stakeholder confidence erosion

eSignature and eWorkflow Pricing Comparison for AJEs

Select an eSignature provider that supports secure attachments, audit trails, HIPAA/financial compliance options, and integration with your ERP; pricing and caps vary by vendor.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	No	No	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Real-World Examples: AJEs Handled Electronically

These examples illustrate how standardized AJEs support auditability, approvals, and integration with financial systems in real organizations.

Optica Ventures LLC

Company streamlined AJE preparation and approvals using a template with required attachments and routing

The interface simplified customer and internal use
The result improved reviewer clarity, reduced follow-up requests, and preserved a clear audit trail for each entry.

BIS

BIS focused on compliance and control by enforcing mandatory support and approver roles

SOC 2 certification guided controls
The company reported greater confidence during audit and a consistent process for month-end adjustments.

Security and Compliance Controls for Electronic AJEs

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Certifications: SOC 2 Type II and ISO 27001 certified

HIPAA: BAA required for PHI handling

Regulatory: 21 CFR Part 11 compatibility available

Access Controls: SSO, SAML, and MFA supported

Audit Trail: Immutable logs with timestamps and IP addresses

Frequently Asked Questions about Using the Business AJEs Template

Answers to common questions help preparers and approvers avoid mistakes and ensure entries remain auditable during reviews.

Need help? Contact support

Who is authorized to approve an AJE?
Approval authority is defined by company policy and should be linked to role-based limits. Use delegated approvers only when documented in authorization matrices to preserve segregation of duties.
What supporting documents are required?
At minimum include the invoice, reconciliation, calculation workpaper, or contract excerpt supporting the adjustment. Lack of evidence commonly results in auditor exceptions and requests for additional documentation.
Can AJEs be e-signed and accepted?
Electronic signatures meet U.S. legal standards when intent, consent, attribution, and retention are demonstrable under ESIGN and UETA; ensure your workflow captures these elements.
How should reversing entries be handled?
Mark the entry as reversing and provide a reversal date; automation should create the offset entry to avoid manual errors and maintain clear period reporting.
What if an entry posts to the wrong period?
Prepare a corrective adjusting entry with a clear explanation and attach supporting calculations; document timing differences and communicate impacts to stakeholders.
How long must AJEs and backup be retained?
Retain AJEs per company policy, typically at least three years for IRS purposes and longer for industry-specific rules; map retention to regulatory citations such as IRC and sector guidance.

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