Introduction to Transaction Processing

The most generally accepted method of recording transactions, and keeping them in balance, is called "double-entry bookkeeping". This is the method used by APPX accounting applications, including General Ledger; therefore, for every debit transaction entry you make, you must also make a corresponding credit entry.

As an example, consider an invoice for a purchase of office supplies for your company. In this example you would debit an expense account called Purchases for the amount of the invoice, and credit the liability account called Accounts Payable for the same amount. Thus the current expense is recorded (for the office supplies) and will be reflected in the next Income Statement; but your liability has also been increased (since you now owe the vendor from whom you purchased the office supplies). In the same manner, when you pay for the office supplies you would debit Accounts Payable (reducing your debt) and credit Cash (also reducing your bank balance). This ensures that the General Ledger is always in balance; in other words, your debits always equal your credits.

In all APPX accounting applications, including General Ledger, your daily transaction entries can be performed using a series of methodical steps. In every application, these steps are basically the same. They are:

• Enter your daily transactions
• Print journals of the transactions; these provide a necessary audit trail
• Post the transactions

Once these steps are performed, you can print reports and view inquiries that will contain up-to-the-minute information. Since posting transactions automatically updates the General Ledger, your information will be up-to-date not only in any subsidiary applications you may have, but also in General Ledger.