Transaction Types
The following section defines the different types of transactions that we have in our system and how you can expect the transactions to appear in your environments.
Page Contents:
Cash
CASH type entry is created when a receipt of type “Payment” is posted. | ||
GL Account | Debit | Credit |
1000 - Cash | $100 | $0 |
1100 - AR / 4000 - Income / 2200 - Deferred Income | $0 | $100 |
Notice the Cash GL Account is always debited in this type of transaction. The crediting entry is almost always one of the following three: Accounts Receivable (from Item), Income (from Item), or Deferred Revenue (from Item).
Receivable
RECEIVABLE type entry is created when a Sales Order of type “Invoice” is posted. | ||
GL Account | Debit | Credit |
1100 - Accounts Receivable | $100 | $0 |
4000 - Income / 2200 - Deferred Income | $0 | $100 |
Notice the Accounts Receivable GL Account is always debited in this type of transaction. The crediting entry is almost always Income (from Item) or Deferred Revenue (from Item).
Disbursement
DISBURSEMENT type entry is created when a Receipt of type “Refund” is posted. | ||
GL Account | Debit | Credit |
1100 - AR / 4000 - Income / 2200 - Deferred Income | $100 | $0 |
1000 - Cash | $0 | $100 |
Notice the Cash GL Account is always credited in this type of transaction. Credit entry almost always has either the A/R, Income, or Deferred Revenue accounts (from Item).
Adjustment (Negative & Void)
ADJUSTMENT (negative & void) type entry is created when an adjustment is created against an invoice to reduce the balance due. | ||
GL Account | Debit | Credit |
6000 - Adjustment Account / 4000 - Income | $100 | $0 |
1100 - Accounts Receivable | $0 | $100 |
Notice that this transaction always has a credit to the Accounts Receivable Account (from Item). The debiting entry is usually the Adjustment Account (from Item) or the Income Account (from Item) in the case of voiding transactions.
Adjustment (Positive & New Items)
ADJUSTMENT (positive and new items) type entry is created when an adjustment is created against an invoice to reduce the balance due. | ||
GL Account | Debit | Credit |
1100 - Accounts Receivable | $100 | $0 |
6000 - Adjustment Account | $0 | $100 |
Notice that this transaction always has a debit to the Accounts Receivable Account (from Item). The crediting entry is usually the Adjustment Account (from Item) or the Income Account (from Item).
Adjustment (Write-offs)
ADJUSTMENT (write-offs) type entry is created when an adjustment is created against an invoice to reduce the balance due. | ||
GL Account | Debit | Credit |
9000 - Write-off | $100 | $0 |
1100 - Accounts Receivable | $0 | $100 |
Notice that this transaction always has a Debit to the Write-off Account (from Business Group). The crediting entry will always reduce the Accounts Receivable account (from Item).
Revenue Recognition
REVENUE RECOGNITION type entry is created when an item that is configured to recognize revenue has been sold or invoiced. | ||
GL Account | Debit | Credit |
2200 - Deferred Revenue | $100 | $0 |
4000 - Income | $0 | $100 |
Notice that the Deferred Revenue Account (from Item) is always debited and the Income Account (from Item) is always credited.
If an item has deferred revenue and is refunded, the system will calculate the reversing entry of the example above. This is also considered for adjustments that have the Revenue Recognition Adjustment field checked.
Transfer Receivable
TRANSFER RECEIVABLE type entry is created when an item from one business group is sold by another business group. Sales Order’s Business Group is NOT EQUAL to the Item’s Business Group | ||
GL Account | Debit | Credit |
1205 - Transfer Receivable | $100 | $0 |
4000 - Income / Deferred Income | $0 | $100 |
Notice that this transaction always has a debit to the Transfers Receivable GL Account on the Item’s Business Group.
Adjustments For Voiding Transactions
In the scenario where an Invoice is being Voided, the system will reverse all entries that were originally made. Dates of course will be considered and made with the current date for previous entries.
Related Pages:
Transactions from the Sales Order