How transactions reach the ledger

What you need to know

• Sales invoice: debits the customer’s receivable account, credits income and VAT payable.
• Payment received: debits bank, cash or mobile money, credits the customer’s receivable.
• Purchase invoice: debits expense or stock received but not billed, and VAT receivable; credits the supplier’s payable.
• Delivery note (with perpetual inventory): debits cost of goods sold, credits stock in hand.
• Payroll: debits salary expense, credits payroll payable and statutory deduction accounts.

Tip: Open any submitted document and click View › Accounting Ledger to see exactly which entries it made.