In accounting, it is a transaction (see: transaction classes) reflecting recurring financial activities recorded in the books of account of an entity as conducted in the normal course of business. For example, routine transactions may be sales, purchases, cash receipts, cash disbursements, payroll, and the like. As opposed to nonroutine transactions, routine transactions relate to ordinary transactions, events and conditions, i.e., as part of normal day-to-day operations of an entity.

These transactions are key in preparing an entity’s financial statements and providing systematic format of its business or activities. Routine transactions are usually recorded on the basis of different accounting concepts and principles including double entry system and accrual accounting.

Routine transactions are processed through the so-called transaction system, i.e., a collection of routine transaction records that can be used in various business processes. Nonroutine transactions, on the other hand, typically include events such as adjusting entries, closing entries, and other unique financial activities that don’t take place on a regular basis.

The transaction system entails that routine transactions are entered in special journals – being a simple venue to record the most frequently occurring transactions. For example, there are four types of special Journals that are frequently used by merchandising businesses: cash receipts journals, sales journals, purchases journals, and cash payments journals.

Entities use special journals to record repetitive transactions that has an effect on the same set of accounts and by nature have a consistent description.

In another context related to accounting, routine transactions involve the exchange of goods or services at market prices, like transactions that are conducted between unrelated parties. Transacting at market prices is a validation as to an involvement of arm’s length mechanism for determining the values exchanged. On the other hand, more complicated transactions, such as intercompany loans or royalty payments, require mindful evaluation to establish their arm’s length nature.