Invoices, purchases, reimbursements and merchandise sales are booked in the ledger as journal entries when they change status. This article shows which entries each step posts and which account from Accounting Settings each line uses. The pages themselves are explained in Invoices, Purchases, Merchandise and Reimbursements.
Note
The examples use a VAT rate of 21% and round amounts. They show amounts the app calculates; they are not accounting advice. A draft invoice or purchase posts nothing. Nothing can be posted on or before the date in Books closed through, which you set in Accounting Settings.
At a glance
| Step | Debit | Credit |
|---|---|---|
| Invoice marked as sent | Receivable account, the invoice total | Default revenue account, the net amount; Output VAT account (sales), the VAT |
| Invoice marked as paid | Primary checking account | Receivable account |
| Sent invoice voided | The sent entry, reversed | |
| Purchase approved | The account of each line, the net cost; Input VAT account (purchases), the deductible VAT | Accounts payable, the total |
| Purchase paid, Bank | Accounts payable | Primary checking account |
| Purchase paid, Band member | Accounts payable | Default reimbursement account |
| Reimbursement registered | Default reimbursement account | Primary checking account |
| Merchandise sale recorded | The account in Paid into, the gross amount; the cost of goods sold, the cost of the goods | The revenue account, the net amount; Output VAT account (sales), the VAT; the merchandise inventory, the cost of the goods |
Invoices
A draft invoice posts nothing. Mark as sent posts the invoice, dated on its issue date. Mark as paid posts the payment. Marking a draft as paid posts both entries.
Example: an invoice of €1,000 excluding 21% VAT
One line of €1,000. VAT 21% × €1,000 = €210. Total €1,210.
| Step | Account | Debit | Credit |
|---|---|---|---|
| Mark as sent | Receivable account | €1,210 | |
| Default revenue account | €1,000 | ||
| Output VAT account (sales) | €210 | ||
| Mark as paid | Primary checking account | €1,210 | |
| Receivable account | €1,210 |
With Void on the sent invoice, a reversing entry posts the same lines the other way round. A draft that is voided has nothing to reverse. With the reverse charge, the artiestenregeling or the small business scheme the invoice has no VAT line.
Purchases
Approve books the purchase, dated on the receipt date. Register Payment books the payment. Each line is booked to the account chosen on the line, or to the Default expense account. A line linked to a stock product is booked to the merchandise inventory instead, because the goods are not an expense until they are sold. When the VAT of the purchase is not deductible, it is part of the cost and there is no input VAT line.
Example: a purchase of €605 including 21% VAT, paid by bank
One line of €605 including VAT. Net cost €605 ÷ 1.21 = €500. VAT €605 − €500 = €105.
| Step | Account | Debit | Credit |
|---|---|---|---|
| Approve | The line's account | €500 | |
| Input VAT account (purchases) | €105 | ||
| Accounts payable | €605 | ||
| Register Payment, Bank | Accounts payable | €605 | |
| Primary checking account | €605 |
Purchases paid by a band member
When a member paid a purchase from their own money, choose Band member under Payment method. The payment does not leave the bank account. The band owes the member instead, on the Default reimbursement account. The purchase then appears on the Reimbursements page until a reimbursement settles it.
Example: the purchase above, paid by a member and reimbursed
The approval is the one in the previous example.
| Step | Account | Debit | Credit |
|---|---|---|---|
| Register Payment, Band member | Accounts payable | €605 | |
| Default reimbursement account | €605 | ||
| Register reimbursement or Reimburse all | Default reimbursement account | €605 | |
| Primary checking account | €605 |
A reimbursement of several purchases posts one entry for their total.
Merchandise sales
Record sale posts one entry, dated on the sale date. The price is entered including VAT. The revenue goes to the revenue account of the product, or to the Merchandise revenue account when the product has none. The cost of the goods is the unit cost of the product at the time of the sale. The unit cost is a moving average: a purchase line linked to the product raises the stock and recalculates the cost.
Example: two T-shirts sold for €24.20 including 21% VAT, paid into the bank account
The product has a unit cost of €5.00. Gross 2 × €24.20 = €48.40. Net €48.40 ÷ 1.21 = €40.00. VAT €48.40 − €40.00 = €8.40. Cost of goods 2 × €5.00 = €10.00.
| Account | Debit | Credit |
|---|---|---|
| Primary checking account (Bank account) | €48.40 | |
| The product's revenue account | €40.00 | |
| Output VAT account (sales) | €8.40 | |
| Cost of goods sold | €10.00 | |
| Merchandise inventory | €10.00 |
With Cash on hand under Paid into, the first line goes to the Cash account.
Where you set it
The accounts are chosen in Settings › Accounting Settings, which needs the Financial admin or Admin role. An invoice, purchase or sale cannot be posted while the account it needs is not set. The entries are listed under Accounting in the side menu.