{"id":3880,"date":"2026-11-03T19:21:00","date_gmt":"2026-11-03T16:21:00","guid":{"rendered":"https:\/\/akaunting.com\/hc\/docs\/double-entry-accounting\/how-double-entry-records-your-transactions\/"},"modified":"2026-11-03T19:22:07","modified_gmt":"2026-11-03T16:22:07","slug":"how-double-entry-records-your-transactions","status":"publish","type":"docs","link":"https:\/\/akaunting.com\/hc\/docs\/double-entry-accounting\/how-double-entry-records-your-transactions\/","title":{"rendered":"How Double-Entry Records Your Transactions"},"content":{"rendered":"\n

You don’t need to write journals for your everyday work. Double-Entry posts every invoice, bill, payment, transfer and expense to your chart of accounts as you record it, and shows you the result on the record itself.<\/p>\n\n\n\n

What Gets Posted Where<\/h2>\n\n\n\n
When you record<\/th>Debit<\/th>Credit<\/th><\/tr><\/thead>
An invoice<\/td>Accounts Receivable, for the total<\/td>The income account of each line, and the tax account of each tax<\/td><\/tr>
A payment for an invoice<\/td>The bank account it was paid into<\/td>Accounts Receivable<\/td><\/tr>
A bill<\/td>The expense or asset account of each line, and the tax account of each tax<\/td>Accounts Payable, for the total<\/td><\/tr>
A payment for a bill<\/td>Accounts Payable<\/td>The bank account it was paid from<\/td><\/tr>
An income transaction<\/td>The bank account<\/td>The account picked as its category<\/td><\/tr>
An expense transaction<\/td>The account picked as its category<\/td>The bank account<\/td><\/tr>
A transfer<\/td>The account the money went to<\/td>The account the money came from<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Discounts on invoices and bills are posted to the sales discount and purchase discount accounts.<\/p>\n\n\n\n

Note:<\/strong> A draft or cancelled invoice or bill doesn’t count in your reports. It counts once it’s sent or received, and stops counting if you cancel it.<\/p>\n\n\n\n

Choosing the Accounts<\/h2>\n\n\n\n
    \n
  • Items:<\/strong> each item has an Income Category<\/strong> for sales and an Expense Category<\/strong> for purchases. These accounts are used whenever you add the item to an invoice or a bill.<\/li>\n<\/ul>\n\n\n\n
    \"\"<\/figure>\n\n\n\n
      \n
    • Invoice and bill lines:<\/strong> each line takes the account of its item. To post one line to another account, click Edit Category<\/strong> under the line and pick it.<\/li>\n\n\n\n
    • Invoices and bills themselves:<\/strong> the Category<\/strong> field is hidden. Invoices are always posted to Accounts Receivable<\/strong>, and bills to Accounts Payable<\/strong>.<\/li>\n\n\n\n
    • Income and expense transactions:<\/strong> the Category<\/strong> field lists your chart of accounts with each account’s code and type, so you can post a transaction to any account, such as a loan, an equity account or a fixed asset. Bank and cash accounts, depreciation accounts, Accounts Receivable and Accounts Payable aren’t listed, because Akaunting posts to them on its own.<\/li>\n<\/ul>\n\n\n\n
      \"\"<\/figure>\n\n\n\n

      Seeing the Debits and Credits<\/h2>\n\n\n\n

      Open any invoice, bill or transaction and expand Journals<\/strong>. You’ll see each account it was posted to, with the debit and credit amounts.<\/p>\n\n\n\n

      \"\"<\/figure>\n\n\n\n

      Accrual and Cash Basis<\/h2>\n\n\n\n

      Every Double-Entry report can be shown on either basis:<\/p>\n\n\n\n

        \n
      • Accrual<\/strong> counts income and expenses when you send an invoice or receive a bill, whether it’s paid or not. It includes all your manual journals.<\/li>\n\n\n\n
      • Cash<\/strong> counts only the money that has moved: payments and other bank transactions, and the manual journals marked as Cash<\/strong>.<\/li>\n<\/ul>\n\n\n\n

        Switch between them with Basis<\/strong> at the top of each report.<\/p>\n\n\n\n