Automatic posting

When a company keeps its books in TrakIT, finalizing or approving its documents posts journal entries by itself. This page explains which entry each document posts, when, and what happens when the document changes afterwards.

TrakIT posts automatically only for a company whose finance system is TrakIT and that has a chart of accounts: see Setting up accounting. Each posting needs an open financial year that covers the document’s date, and the default accounts it uses. If something is missing, the document is not finalized or approved, and the message says what to fix: see When posting fails.

What posts, and when

Document	Posts when you	Entry dated	Title of the entry
Invoice, debit note or credit note	Select Finalize. A credit note made with Reverse Invoice posts at once.	The document date	Invoice: (for a debit note too) or Credit Note: and the number
Bill	Select Finalise	The bill date	Bill: and the number
Receipt or payment	Select Finalise	The transaction date	Receipt: or Payment: and the reference
Internal posting	Select Approve	The posting date	Internal Posting: and the number
Adjustments on an invoice, credit note or bill	Finalize the document	The document date	Adjustments: and the document
Write-off of an invoice	Write the invoice off	The write-off date	Write-Off: Invoice and the number

Approving an invoice, validating a bill and approving a receipt or payment do not post anything. Neither do quotations, estimates, Mark as Paid, cancelling or deleting a draft document.

The person who finalizes or approves the document is shown as the one who executed the entry. Entries that TrakIT posts in the background, and adjustment entries, show System.

TrakIT also posts the opening balances, the FX revaluation and the year-end closing entry of a financial year when you run them.

Invoices, debit notes and credit notes

Line	Account	Side	Amount
Accounts receivable	Default AR Account	Debit	The invoice total, less the tax withheld.
Revenue	The ledger account linked to each line’s account master, or the Default Income Account	Credit	The invoice lines before tax, added up per account.
Sales tax	Sales Tax Account	Credit	The tax on the invoice, leaving out any tax the invoice is exempt from.
Withheld tax	Withheld Tax Account	Debit	The tax the customer withholds, when the invoice has a tax deduction.

All the lines of the invoice are credited this way, disbursements included: link an account master to another ledger account to send its lines elsewhere (see Setting up accounting).

Before posting, TrakIT adds the lines up again and compares the result with the invoice total. A rounding difference of a few cents goes to the largest revenue line. A larger difference stops the posting, so the books never disagree with the printed invoice.

A debit note posts like an invoice. A credit note posts the same entry with its negative amounts, which is the mirror image of an invoice: it credits accounts receivable and debits revenue and tax. A tax deduction on a credit note is credited to withheld tax, and lowers the credit to accounts receivable by the same amount.

Bills

Line	Account	Side	Amount
Expense	The ledger account linked to each line’s account master, or the Default Expense Account	Debit	The bill lines before tax, added up per account.
Purchase tax	Purchase Tax Account	Debit	The tax on the bill.
Tax withheld	Withholding Tax Payable	Credit	The tax you withhold from the supplier, when the bill has a tax deduction.
Accounts payable	Default AP Account	Credit	The bill total, less the tax withheld.

If the company has no Purchase Tax Account, the tax on each line goes to that line’s expense account. Rounding goes to the largest expense line, so the expense always matches the validated bill total.

Adjustments

Adjustments, such as discounts, reduce what the customer or the supplier owes. Each invoice, credit note or bill has one adjustment entry, for the total of its adjustments, posted when the document is finalized:

Document	Debit	Credit
Invoice	Discounts & Allowances	Default AR Account
Credit note	Default AR Account	Discounts & Allowances
Bill	Default AP Account	Default Expense Account

If the adjustments of a document change while it is in the books, TrakIT reverses the adjustment entry and posts a new one for the new total, dated the day of the change.

Adjustments on a receipt or payment appear on its voucher but are not posted.

Write-offs

When you write off an invoice in a company that keeps its books in TrakIT, the invoice must be finalized, and you choose the account to write the balance off against and the write-off date. TrakIT posts:

Line	Account	Side	Amount
Write-off	The account you choose: any active child account in the company currency except the Default AR Account	Debit	The outstanding balance.
Accounts receivable	Default AR Account	Credit	The outstanding balance.

Remove Write-Off reverses the entry.

Receipts and payments

Document	Debit	Credit
Receipt	The bank or cash account of the receipt’s payment method	Default AR Account
Payment	Default AP Account	The bank or cash account of the payment’s payment method

The payment method’s account is set on the Payment Methods tab of Finance Masters. A receipt or payment in another currency can also post a realized exchange difference to the FX Gain/Loss Account: see Multi-currency accounting.

In a company that keeps its books in TrakIT, you can finalize a receipt or payment before all of it is allocated to invoices or bills. The whole amount is posted; the part not allocated stays on the accounts receivable or payable account. When you later add invoices or bills to the finalized receipt or payment, TrakIT reverses its entry and posts a new one from the current allocations.

Internal postings

An internal posting moves amounts between account masters within the company, and its lines add up to zero. When it is approved:

• its income lines are credited, and its other lines debited;
• each line goes to the ledger account linked to its account master, or else to the Default Income Account for income lines and the Default Expense Account for the others.

Lines that land on the same account are added up. If everything cancels out within the same accounts, nothing is posted. All the lines must be in one currency.

When a document changes after posting

A posted entry is never changed. TrakIT reverses it, and posts a new entry if the document is finalized or approved again. The original and the reversal both stay in the journal.

You	TrakIT
Reset or un-finalize an invoice or credit note	Reverses its entry, its adjustment entry and its write-off entry. Only TrakIT Support can do this, and not while receipts are allocated to it.
Select Reverse Invoice	Leaves the invoice entry as it is and posts the credit note, dated the credit note date.
Reset a bill	Reverses its entry and its adjustment entry. Not possible while payments are registered for it.
Reset a receipt or payment	Reverses its entry. It goes back to draft.
Add invoices or bills to a finalized receipt or payment	Reverses its entry and posts a new one.
Reset an internal posting	Reverses its entry.
Change the adjustments of a posted document	Reverses the adjustment entry and posts a new one.
Remove a write-off	Reverses the write-off entry.

A reversal is dated the same day as the entry it reverses, except when adjustments change: the adjustment entry is then reversed on the day of the change. A reversal is not possible when the entry is in a closed financial year: the document then cannot be reset, and you correct it with an entry in an open year instead.

Documents finalized earlier

A document posts when it is finalized or approved. Documents finalized before the company kept its books in TrakIT are not posted then. If a system administrator has turned on Invoices and Bills under Synchronisation Settings on the company’s Finance System tab, TrakIT looks every 5 minutes for finalized invoices, credit notes and bills that it has not synchronized yet, and posts them. A document it cannot post gets the error message as its sync reference; after fixing the cause, clear the error so that TrakIT tries again (Clear Sync Errors on the Invoices and Bills lists).

Posting the same document again never posts it twice: while its entry is in force, TrakIT leaves it as it is.

When posting fails

Message starts with	What to do
“No open Financial Year covers…”	Create the financial year that covers the date, or check the document’s date. A closed year cannot take entries.
“Default AR (DAR) COA account not configured…” and other messages about a default account	Choose the missing default account on the Chart of Accounts page.
“Default Income (DINC) COA account not configured and one or more line types have no COA mapping”	Choose a Default Income Account, or link the account masters to ledger accounts.
“This invoice has taxes but no Sales Tax…”	Choose a Sales Tax Account.
“This invoice has a tax deduction but no Withheld Tax…”	Choose a Withheld Tax Account.
“This bill has a tax deduction but no Withholding Tax Payable…”	Choose a Withholding Tax Payable account.
“Payment method ‘…’ has no COA bank/cash account configured”	Ask a system administrator to set the method’s COA Account, or use a method set up for the company.
“Payment method ‘…’ posts to a … account - it can only be used for…”	The method’s bank account is in another currency: use a method for the receipt’s or payment’s currency.
“No exchange rate found for…”	Add the rate on the Exchange rates page.
“This settlement has a realized exchange difference…”	Choose an FX Gain/Loss Account.
“Computed total … does not match the invoice total”	The invoice’s lines and its total disagree: check the invoice.
“Mixed-currency internal postings cannot be posted…”	Use lines of one currency in the internal posting.
“One or more accounts are invalid, disabled…”	An account the posting uses was made inactive or deleted: check the default accounts, the account masters’ ledger accounts and the payment method’s account.
“Cannot reverse journal …: its Financial Year is closed”	The document’s entry is in a closed year: correct it with an entry in an open year.