What happens automatically
Most journals are created for you when a document is saved or posted in another module. This page shows which document creates which journal, so you can recognise them in reports.
The postings
| When someone… | In module | Accounting creates | Debit | Credit |
|---|---|---|---|---|
| Creates a sales invoice | Invoicing | A draft journal, linked to the invoice | 1100 Accounts Receivable | 4000 Sales Revenue |
| Posts that invoice | Invoicing | Posts the draft journal; adds the invoice to Receivables | ||
| Allocates a customer receipt to an invoice | Payments | A posted journal; reduces the invoice's balance due | 1000 Current Assets | 1100 Accounts Receivable |
| Posts a sales credit note | Invoicing | A posted journal; reduces the invoice's balance due | 4100 Sales Returns | 1100 Accounts Receivable |
| Posts a supplier invoice | Purchasing | A posted journal; adds the bill to payables | 5000 Cost of Goods Sold | 2010 Accounts Payable |
| Posts a supplier payment | Purchasing | A posted journal; reduces the bill's balance due | 2010 Accounts Payable | 1000 Current Assets |
| Posts a donation | Charity | A posted journal per fund | Charity settings decide | Charity settings decide |
Every amount is the document's total, in both transaction and base currency.
Example: one sale from invoice to cash
| Journal | Reference | Debit | Credit | Amount |
|---|---|---|---|---|
| 1 | Sales invoice | 1100 Accounts Receivable | 4000 Sales Revenue | 327.60 |
| 2 | Payment allocation (first) | 1000 Current Assets | 1100 Accounts Receivable | 200.00 |
| 3 | Payment allocation (second) | 1000 Current Assets | 1100 Accounts Receivable | 127.60 |
After all three, Accounts Receivable is back to zero and the money sits in 1000.
Draft and posted journals
| Status | Counts in reports? | Meaning |
|---|---|---|
| Draft | No | Prepared with the invoice, waiting for it to be posted |
| Posted | Yes | Part of your books |
| Reversed | Yes, with its reversal | Cancelled by an opposite journal (charity corrections) |
Rules every journal follows
These rules apply to automatic journals too. If one fails, the document in the other module is not saved, and that module shows the message.
| Rule | Message when broken |
|---|---|
| At least two lines | Journal must contain at least two entries |
| Debits equal credits | Journal is not balanced. Total debit must equal total credit |
| Base-currency debits equal base credits | Journal base amounts are not balanced. Base debit must equal base credit |
| Every account exists, is active and can be posted to | Account is inactive: … / Posting is not allowed for account: … |
| A document is booked once only | Accounting journal already exists for reference SALES_INVOICE: 42 |
| The needed account codes exist | Accounting account not found. accountCode=1100 |
Example: someone deactivates 4100 Sales Returns by mistake (it is protected, but suppose it was
recreated without the system flag). The next credit note fails to post with "Account is inactive:
4100". Reactivate the account, then post the credit note again.
Things to know
- Tax is not split out. The whole invoice total, including tax, is credited to
4000 Sales Revenue. - Receipts and supplier payments use
1000 Current Assets, not a specific bank account. Your reconciliation to the bank statement is done outside Trade Manager. - Supplier invoices go to
5000 Cost of Goods Sold, whatever was bought. - Corrections are made in the source module (cancel, credit note, new document). There is no button in Accounting to edit or reverse an automatic journal.
Next: Journals.