What is a Folio Number in Accounting?

A folio number is a reference number used in accounting to uniquely identify an entry in a journal or ledger. This number is stored in a separate folio number field in an entry. The number may be numeric or alphanumeric.

Example of a Folio Number in Accounting

As an example of how folio numbers are used in accounting, assume that you have a sales journal and a general ledger. An entry in the sales journal records a $1,000 invoice to a major customer on December 5. It includes the GL-205 folio number, which refers to a corresponding entry in the general ledger. Meanwhile, the entry in the general ledger (debiting the trade receivables account for $1,000) contains the SJ-15 folio number, which refers back to the specific entry in the sales journal.

What is a Folio Number in Investing?

Folio numbers are used in mutual funds, where they uniquely identify an investor’s account. This number can be used to track down an investor’s transaction history with a mutual fund.