Transactions Income & Expense accounting

Income and Expense transactions are entered into the Transactions table, which is the central hub for accounting purposes. In this table, transactions are always visible and in perfect order, providing a clear overview and keeping everything under control. Additionally, all entered data can be modified and corrected at any time.

The columns of the Transactions table

The main columns of the Transactions table are listed below. The display of the columns changes according to the selected View.

You can add additional system columns as well as your own columns via Data > Columns setup.

Date
Enter the date of the incoming or outgoing transaction

Doc
A Doc number is entered. Usually, the document number identical to the paper document is assigned; this allows you to easily retrieve the documents after some time.

Description
Enter a description to identify the incoming or outgoing transaction.

Income
Enter the incoming amount.

Expenses
Enter the outgoing amount.

Account
Enter the estate accounts (cash, bank, post office, customers, suppliers ..)

• If it is an income the amount should be recorded as a positive on the account.
• If it is an expense the amount should be recorded as a negative on the account.

Category
Enter the reason for the income or expense; it can be an income or expense category, defined in the Categories table, or an account present in the Accounts table.

• Entering a category:
  This is used to attribute income or expense to an item. The sign of the Category follows the sign of the account.
  • If it is an income, the amount should be recorded as a positive.
  • If it is an expense, the amount should be recorded as a negative.
• Entering an account:
  It is used to transfer amounts from one asset account to another (e.g., withdrawals, deposits, ...). On the account entered in the Category column the amount is then entered the opposite way. The transaction functions as in double-entry accounting:
  • If it is an income, the amount should be recorded as a negative.
  • If it is an expense, the amount should be recorded as a positive.

Category Description
In this column, the description of the category, inserted in the Categories table, is automatically taken.
If in the Categories table the description of a category is modified, in order to visualize the new text in the Category Description column of the Transactions table, it is necessary to recalculate the accounting.

Entering Transactions

In the Transactions table, the incoming and outgoing movements between accounts and categories are recorded. There are different columns for entering transaction data:

• Date: the date of the entry.
• Doc.: the document number.
• Description: the description of the transaction.
• Income/Expenses: enter the amount coming in or going out.
• Account: enter one of the Estate accounts (cash, bank, post, clients, suppliers...).
• Category: the reason for the income or expense is entered, which could be a revenue or expense category or a contra account for asset movements.

After each entry, the amount is shown automatically in the account and category tab. In the category column, an account from a category or also an account from the Accounts table can be entered:

•  If a category is entered in the Category column, the amount is recorded in the category as income and expense. 
•  If an account is entered in the Category column, the amount is recorded in reverse (with the sign reversed). If it is outgoing instead as positive. In this way, transactions can be made between two asset accounts (as in the case of a transfer).
• On the other hand, it is not possible to make transactions in and out of two categories with one entry.
  It is necessary to use two lines of entry, without using the Account column, with the first line in and the second line out.

It is also possible to record compound transactions, exit from an account with several categories. In this case, several lines are used: on the first line the account without category is recorded and on the following lines the categories and without account are recorded.

The Income and Expense Accounting allows to manage operations in a similar way to the Double-entry accounting, except for movements between two Categories that require two entry rows.

Speeding up the recording of Transactions

In order to accelerate the recording of the Transactions, you can use the following functionalities:

• The Smart fill function that allows the automatic auto-complete of data that have already been entered at an earlier date.
• The Recurring transactions function, used to memorize recurring transactions into an appropriate table.
• Importing  bank or postal account statements, to automatically import transactions from bank, postal or credit card statements.

Recording expenses or income

When recording a movement, the Account column should indicate:

• in the Account column, the account from which the amount enters or exits;
• in the Category column, the expense or income category.

In the Account/Category card, the amount will be recorded in positive if it is an income and in negative if it is an expense.

Transactions between asset accounts

In the Category column, it is also possible to enter an asset account, present in the Accounts table.

For example, to record a transaction into the cash account from a bank withdrawal, the entry is made as follows:

• Enter the incoming amount in the Income column.
• Enter the Cash account in the Account column.
• Enter the Bank account in the Category column.

In this case, the program will record the amount positively in the Cash account (which increases) and negatively in the Bank account (which decreases).

Thanks to this recording method, any direct movement between two asset accounts can be recorded on a single registration line, as in double-entry bookkeeping (see example in the image above, first transaction).

Transactions with multiple movements

When you need to record a transaction that is to be split across multiple accounts or categories, you must enter multiple rows of transactions.

Below we show an example (see registration Doc. 11).
Multiple bills are paid through the bank.

• Enter the same date and document number in all the rows that affect the same transaction. This allows you to easily locate a transaction with multiple entries.
• In the first row, enter the total amount in the Expenses column if it is a payment, or in the Income column if it is deposit.
• In the Account column, enter the liquidity account (account through which you pay or collect). The Category column in the first row remains empty.
• In the following rows, enter the amount of the invoice paid or collected on each row (the Expenses column or the Income column),
  Each invoice will be entered on a separate row.
  The Account column remains empty.
• In the Category column, enter the category for each row to identify the entry or entry of the movement.

 Examples of transactions with VAT

In order to manage transactions with VAT, it is necessary to have set up an Income / Expense template with VAT options.

Additional columns for VAT

Depending on the type of Income / Expense accounts setup (with or without VAT) there are additional columns where VAT data is entered.

VAT Code
Enter the VAT code referring to a sale or a cost. There must be a code in the VAT Codes table.

Refer to the Transactions with VAT page for explanations of VAT codes and further information.

Account and category card

In the account or category card, the presentation of the transactions is very similar to the ones of the Transactions table.
If you enter further transactions or make changes (always operated in the Transactions table), you can update the account/category card by clicking the Refresh icon on the right side of the screen.