Journal Entries & Transactions

The system provides two primary methods for recording financial activity, each suited for different purposes.

Journal Entries

Navigation: Accounting -> Journal Entries

A Journal Entry is a container for a set of related transactions that occur on the same date. It is the standard, formal way to record accounting data.

When to Use:

For complex transactions involving multiple debits and/or credits (e.g., recording payroll).
For making adjustments, such as recording asset depreciation or correcting a previous error.
For recording opening balances when first setting up the system.

How to Use:

Click Add Journal Entry.

Provide a Date and a clear Description (e.g., "To record opening inventory balance") and click "Create Journal Entry".
You will be taken to the "Edit Journal Entry" screen. From here, use the Add Transaction or Add Transaction with VAT buttons to add individual lines.

The pop-up modal allows you to enter the details for each line of the entry.

After adding all necessary lines, the total debits must equal the total of all credits. The system enforces this rule automatically.

Transactions

Navigation: Accounting -> Transactions

This screen provides a simplified way to record a single transaction with one debit and one credit. It is a shortcut that creates a Journal Entry behind the scenes.

When to Use:

For simple, day-to-day transactions like paying an electricity bill or recording a cash sale.

The process is identical to adding a transaction from within a Journal Entry, using the same pop-up modals.

Using Templates

To speed up data entry for recurring transactions, the system uses templates. These are pre-configured pairings of accounts for common scenarios.

Note: Templates are currently defined within the system code and cannot be edited through the user interface.

Standard Transaction Template

When you click "Add Transaction", you will see a "Template" dropdown. Selecting a template (e.g., "Pay Expense from Bank") will automatically populate the Debit and Credit account fields for you, saving you time.

Transaction with VAT Template

The "Add Transaction with VAT" modal also includes a template dropdown. This is particularly powerful for correctly recording VAT.

When you select a template like "Expense (e.g., from Bank)", the system pre-selects the correct accounts:

Primary Account: The account you are paying from (e.g., a Bank account).
Secondary Account: The account that categorizes the transaction (e.g., an Expense account).

The system then uses these selections to automatically handle the complex VAT accounting in the background, ensuring the correct amounts are posted to the VAT Payable or VAT Receivable accounts.