Glossary

• Base currency — the single currency a company's books are kept in.

• Booking rate — the exchange rate an invoice or bill was recorded at; used later when the document is settled.

• Chart of Accounts (COA) — the structured list of all accounts, in five categories: Assets, Equity, Liabilities, Revenue, Expense.

• Closing rate — the exchange rate at a period end, used by FX revaluation.

• Default accounts — the accounts automatic postings use (AR, AP, income, expense, tax, discounts, FX gain/loss), set on the Chart of Accounts page.

• Financial Year (FY) — an accounting period; every journal entry belongs to one and is dated inside it.

• Foreign-currency account — a postable account designated for one specific currency, tracking both the currency balance and its base value.

• Journal entry — the unit of double-entry bookkeeping: two or more lines whose debits equal credits.

• Postable account — an account transactions can be recorded on (leaf level of the chart).

• Realized / unrealized exchange difference — realized arises on settlement of a foreign-currency document; unrealized arises from restating open balances at the closing rate.

• Retained Earnings (RE) — the equity account receiving each year's profit or loss at year-end close; marked with Special code RE.

• Reversal — a mirror-image entry that cancels an earlier entry; TrakIT posts these automatically when documents are un-finalised.

• Summary account — a folder-level account that groups postable accounts and shows their combined balance.

• Year-end close — the process that zeroes income and expense accounts into Retained Earnings and locks the year.

FAQ

Why doesn't my invoice/bill create a journal entry when finalised? The company must have its Finance System set to TrakIT, a Chart of Accounts, the relevant default accounts configured, and an open Financial Year covering the document date. The finalisation message states exactly which piece is missing.

Can I edit or delete a journal entry? No. Entries are permanent. Correct with an opposite manual entry, or — for document postings — un-finalise the document (TrakIT reverses the entry) and finalise it again after fixing it.

I un-finalised a bill and re-finalised it. Are there duplicates now? No. The journal shows the original entry, its reversal, and the new entry. Only the new entry affects balances. A document is never on the books twice.

Why can't I post to a particular account? Only postable, active accounts of the same company can be used. Summary accounts (folder icon) can never take postings. Foreign-currency designated accounts additionally require an entry in their own currency.

Why won't the year close? In order of likelihood: the end date hasn't passed yet; the next Financial Year hasn't been created; an earlier year is still open; or no account carries the Special code RE.

The Balance Sheet doesn't balance. What do I check? Read the warnings under the statement. If earlier years are open, close them. Otherwise check the Trial Balance difference and report it if non-zero.

Where do exchange differences in my P&L come from? Foreign-currency settlements post realized differences automatically, and FX Revaluation posts unrealized ones. Both go to the FX Gain/Loss account; open its account page to see each entry.

Can a receipt in EUR pay a USD invoice? No. Settlements apply only to documents in the same currency. Handle cross-currency situations with separate settlements or a manual entry.

Why is an inactive account still on my Trial Balance? It still carries a balance. Bring it to zero with a journal entry; it disappears from the report once its balance is zero. (Accounts with balances cannot be made inactive going forward.)

Who can do what? Viewing the journal and reports requires journal read permission. Recording manual entries, opening balances and FX revaluation requires journal create permission. Chart of Accounts changes have their own create/update/delete permissions. Financial Years are managed by administrators in Finance Master.

When should I run FX Revaluation? At every period end you report on, and always as at the year-end date before closing a year. Running it twice in the same year is safe — the newer run replaces the older one.