Adding transaction entries

Archive entries of the types of invoices and receipts are considered transactional entries. They have a corresponding monetary value and involve a financial transaction, and Vieolo will add an automatic accounting record for the entries.

The process of saving a transactional entry is quite similar to that of a communicational entry. For this reason, we will focus on the differences between the two.

For a transactional entry, a new section will appear in the form named “Invoice” for invoice entries and “Receipt” for receipt entries.

Since the entry involves a financial transaction, you must select the currency of the entry. By default, the currency is set to the main currency of your workspace. If the currency of the transaction is the same as that of your workspace, you wouldn’t need to deal with any exchange rate but if the currency is not the same, Vieolo will provide you with the exchange rate.

Below the currency, you need to enter the breakdown of the invoice or receipt. Each invoice or receipt will have one or more rows of items and taxes. The total amount of the invoice or receipt will be automatically calculated based on the items and taxes.

Each item you add to the breakdown needs to have a description, quantity, and rate. You can assign a product to the row, helping you to find entries by their products. Selecting a product is optional and if you want to select a product that you haven’t created, you can quickly add a new product by clicking the “Add a new product” button.

If you have the required permissions for the Accounting module, you can also select an income or expense account for the row which are the corresponding accounts used in the Accounting module. Selecting the income/expense account is optional and if left empty, a default value will be used which can be later modified by your accounting team/accountant.

If you are adding an invoice, the amount will be initially saved as a debt. If you are receiving the invoice, the amount will be your debt (Accounts payable) while if you are sending the invoice, the amount will be the recipient’s debt (Accounts receivable). In the case of an invoice, the actual payment is usually done on a later date and is recorded separately. To know more about recording the payment of an invoice please visit here.

If you are adding a receipt, the financial transaction has already been completed. So, unlike the invoice, the payment will be recorded without any transient debt. For this reason, below the breakdown table, you will be able to select the payment account for your receipt entry. The payment account is the source you have used to send or receive the amount. The payment account will be reflected in your accounting records. Selecting the payment account is optional and if left unselected, a default value will be used which can be later modified by your accounting team/accountant.

Currency Exchange

If the currency of the entry is different from the main currency of your workspace, Vieolo will provide you with the tools necessary to manage the exchange. Your Archive entry will remain in foreign currency and the exchange rate will be applicable only in the Accounting module and payments.

If you are adding an invoice, the initial exchange rate is provided by Vieolo. While recording the payment for the invoice (learn more about how to record a payment here), you can modify the exchange rate to match the actual exchange rate used by your financial institution for the payment. Any difference between the initial exchanged amount and the one in the actual payment is automatically recorded as a gain/loss on foreign exchange.

In case of a receipt, the financial transaction is already completed and the payment will be recorded while saving the Archive entry. In the total section of the breakdown table, you can modify the exchange rate used for the payment. Since there is no accounting debt transaction (Accounts receivable/payable), there won’t be any need for any gain or loss on foreign exchange.