When a company's Finance System is set to TrakIT and its Chart of Accounts is configured, finalising operational documents posts the books automatically. This page explains what each document posts, and what happens when documents change.

Every automatic posting requires an open Financial Year covering the document date — there is no fallback to another year. If none exists, finalisation fails with a clear message; create/extend the year or fix the document date.

Invoices and credit notes

Posted when the invoice is finalised:

• Debit: Default AR account, for the invoice total.

• Credit: each line's income account — the account mapped on the line's Finance Type, or the Default Income account for unmapped types.

• Credit: Sales Tax account, for the tax charged (required if the invoice has tax).

• Debit: Withheld Tax account, for any tax deduction (required if the invoice has one).

Credit notes post exactly the same way with opposite effect (their totals are negative).

Foreign-currency invoices convert to base at the invoice exchange rate; the currency amounts are stored alongside. Before posting, TrakIT re-computes the total from the invoice lines and refuses to post if it cannot reconcile them with the stored invoice total — a safeguard that the ledger never contradicts the printed document.

Bills

Posted when the bill is finalised (verified):

• Debit: Default Expense account, for the bill total net of tax.

• Debit: Purchase Tax account, for the tax amount — only if a Purchase Tax account is configured; otherwise the gross amount goes to expense.

• Credit: Default AP account, for the gross bill total.

Foreign-currency bills convert at the bill's exchange rate.

Receipts and payments

Posted when the receipt/payment is finalised:

• Receipt: Debit the payment method's bank/cash account, Credit Default AR.

• Payment: Debit Default AP, Credit the payment method's bank/cash account.

For foreign-currency settlements, the money is valued at the exchange rate of the transaction date, while AR/AP is relieved at the booking rate of each invoice or bill the amount is applied to. Any difference is posted automatically to the FX Gain/Loss account as a realized exchange gain or loss. Unapplied amounts are relieved at the settlement-date rate (no gain or loss until they are applied).

Note: receipts and payments can only be applied to documents in the same currency.

Internal postings

Posted when the internal posting is approved:

• Income lines credit the account mapped on their Finance Type (or Default Income).

• Cost lines debit their mapped account (or Default Expense).

An internal posting always nets to zero, so the entry balances within the company's own books. All lines must be in one currency; foreign currency converts at the rate for the posting date. Resetting an approved posting reverses its journal entry.

Adjustments (discounts, write-offs)

When an adjustment is recorded against an invoice or bill that is already on the books, TrakIT keeps one adjustment entry per document in step with the document's total adjustments:

• Invoice adjustments: Debit Discounts & Allowances, Credit Default AR.

• Bill adjustments: Debit Default AP, Credit Default Expense.

Changing or removing adjustments replaces or reverses the entry automatically. Adjustments are dated the day they are recorded, converted at the document's booking rate.

When documents change after posting

Un-finalising, resetting or un-validating a posted document automatically posts a reversal entry and, if the document had an adjustment entry, reverses that too. When the document is finalised again, a fresh entry is posted with the current figures. Nothing is ever silently overwritten — the original, its reversal and the new entry all remain in the journal.

If the original entry sits in a closed Financial Year, the document cannot be un-finalised; issue a credit/debit note or record a manual correction in the current year instead.

Common messages

• "No open Financial Year covers the … date" — create the Financial Year, or fix the document date.

• "Default … COA account not configured" — fill in the missing default on the Chart of Accounts page.

• "Payment method … has no COA bank/cash account configured" — map the method in Finance Methods.

• "No exchange rate found for …" — add the rate to the exchange rate table for that date.

• "Computed total … does not match the invoice total" — the invoice's lines and total disagree (usually an unusual rate or rounding setup); review the invoice before it can post.

• "Cannot reverse journal …: its Financial Year is closed" — the document is locked in a closed year; correct via the current year.