Introduction to the Transaction Register

In a company, all accounting events are entered as Transactions. Depending on the nature of the Transaction, this can be done directly to the Transaction register or remotely from the Sales and Purchase Ledgers or the Stock module.

In FirstOffice, you can decide which Transactions are to be entered directly and which are to be created remotely from other Ledgers (or 'Sub Systems'). This is done using the Sub Systems setting.

Typically, Transactions representing Sales and Purchase Invoices, Receipts and Payments will be generated remotely from the Sales and Purchase Ledgers. Other types of transactions will be entered directly to the Transaction register: these might include bank transfers, overhead costs, salaries etc.

Before you start entering Transactions, you must ensure that you have defined the current financial (accounting) year, using the Fiscal Years setting in the System module. You should also have defined a basic journal number series for Transactions using the Number Series - Transactions setting in the Nominal Ledger.

To open the Transaction register, ensure you are in the Nominal Ledger, then click the [Transactions] button in the Master Control panel. The 'Transactions: Browse' window is opened, showing a list of Transactions already entered.

Transactions that have been entered directly to the Transaction register are shown with their Transaction Numbers preceded by the financial year: the Transactions numbered 2005.2165 to 2005.2168 in the illustration are examples of this. The characters representing the financial year are taken from the Fiscal Years setting in the System module. Transactions that have been created from a Sub System are shown with their Transaction Numbers preceded by a code depending on their nature. In their case, the Transaction Numbers themselves are determined in the Sub System in which they were created. For example, Transactions generated from Sales Invoices have a Transaction Number that is the same as their Invoice Number, and are shown in the browse window with a prefix of S/INV.

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In FirstOffice you may separate Transaction Date and Registration Date. This is particularly important in relation to your external reporting, e.g. the VAT reporting, and your internal accounting, where you may wish Transactions to go into the correct month.


In the Text column you can see the short explanatory text that was entered for each Transaction. For those Transactions created from Sub Systems, the Text column usually shows details of the Customer or Supplier involved.

As in other lists you can change the sort order by clicking on the column headings. The current sort column is shown with its heading underlined. You can also scroll the list using the scroll bars. Finally, you can search for a record by entering a keyword in the field in the top right-hand corner. FirstOffice will search for the first record matching the keyword in the same column as the selected sorting order.

There are four things you can do with your Transactions:

Entering a Transaction

To enter a Transaction, first open the Transaction register using the [Transactions] button in the Master Control panel.

Then, click [New] in the Button Bar or use the Ctrl-N (Windows and Linux) or ⌘-N (Macintosh) keyboard shortcut. Alternatively, highlight a Transaction similar to the one you want to enter and click [Duplicate] on the Button Bar.

The 'Transaction: New' window is opened, empty if you clicked [New] or containing a duplicate of the highlighted Transaction.

Entering a Transaction - Header

No
Paste Special    Select from another Number Series
Transaction Number. When you enter a new Transaction, FirstOffice will enter the next unused number from the first record in the Number Series - Transactions setting. You may change this number, but not to one that has already been used. If you are working in a multi-user environment, the Transaction Number is assigned when the Transaction is saved.

Trans. Date
Paste Special    Choose date
The date of the Transaction does not have to coincide with the date when the Transaction was recorded. The last used Transaction Date is offered as a default.

Reference
An optional reference field whose contents are shown in the 'Transactions: Browse' window.

Text
A short description of the Transaction.

Entering a Transaction - Footer

Difference
Any difference between the sums of Debited and Credited amounts is shown here: the two sums must be the same before the Transaction can be saved. A balancing entry shows a zero difference in this field.

Total
These two fields show the sums of Debits and Credits for this Transaction.

Entering a Transaction - Transaction Rows (Journal Postings)

In the centre of the 'Transaction: New' and 'Transaction: Inspect' windows are the rows of the Transaction, where you should list the postings to the individual Accounts. These must balance (the debits must equal the credits) before the Transaction can be saved.

To add rows to a Transaction, click in any field in the first blank row and enter appropriate text. To remove a row, click on the row number on the left of the row and press the Backspace key. To insert a row, click on the row number where the insertion is to be made and press Return.

Account
Paste Special    Account register, Nominal Ledger/System module
Specify here the Account used by the Transaction row.

You can also enter the Code of an Autotransaction to this field. Autotransactions are used to automate the entry of frequently used Transactions, not only reducing labour but also ensuring the correct Accounts are used every time.

Objects
Paste Special    Object register, Nominal Ledger
You can assign up to 20 Objects, separated by commas, to this Transaction row. You might define separate Objects to represent different departments, cost centres or product types. This provides a flexible method of analysis that can be used in Nominal Ledger reports. Full details can be found in the description of the Object register here.

You can use a check box in the Transaction Settings setting to have the cursor skip over this field when you press Return or Enter if you don't use Objects.

If you enter more than one Object, they will automatically be sorted alphabetically when you move to the next field.

Description
A default Description is brought in from the Account record. It can be modified for this Transaction if necessary. As with Objects, you can have the cursor skip over this field when you press Return or Enter.

Debit, Credit
For each row, specify a debit or credit amount. The debits total must equal the credits total before the Transaction can be saved: each Transaction must therefore have at least two rows. If you are using the Warn On Unusual Amount option in the Transaction Settings setting and a particular Account can only have amounts posted to one side (debit or credit) you will be warned if you attempt to post a figure to the other side. Note that this warning will not be enforced and can be overridden.

V-Cd
Paste Special    VAT Codes setting, Nominal Ledger
You can mark each row in a Transaction with a VAT Code. The code may be entered automatically with the Account number, or manually. No calculation ensues: the field is for reporting purposes only. Nevertheless, take care to ensure you enter the correct VAT Code (if any), since it will affect the accuracy of the figures for Net Sales and Net Purchases in your VAT Return, as shown in the illustration of the VAT Report Definition.

Entering a Transaction - Example

As described here, FirstOffice provides several shortcuts to simplify your work when entering Transactions. You can bring a date into a date field using the Ctrl-Enter key combination (Macintosh users can press ⌘-Enter). If you will be entering Transactions of the same type repeatedly (e.g. salaries), you can automate their entry using Autotransactions.
  1. Open the Transaction register by clicking the [Transactions] button in the Master Control panel. Then, click [New] or press Ctrl-N/⌘-N or highlight a Transaction similar to the one you want to enter, and click [Duplicate] in the Button Bar.

    The 'Transaction: New' window is opened, containing an empty Transaction or a duplicate of the highlighted one. FirstOffice suggests the next unused Transaction Number from the correct journal number series, and as Transaction Date the date from the last entered Transaction.

  2. Enter and edit the data in the normal way. We will show how to enter the various items with the help of a few examples.

    We assume that you have bought some office material from the local stationery store.

    You have purchased two boxes of copy paper for 12.50 each, a box of pencils for 6.00, and a box of adhesive tape for 3.20. The VAT was 5.22, and the total 39.42. You paid by cheque from the company's current account.

    The Transaction will look like this:

  1. Click [Save] to enter the Transaction in the Nominal Ledger.

  2. The next Transaction records the purchasing of a new desk. Start by clicking [New]. The stationery Transaction is closed and replaced with an empty record ready for data entry.

    The desk cost 247.00 excluding VAT. You are charged 20.00 for transport, and then of course VAT.

  3. Here you can try the automatic balancing function, since all crediting is done to the same Account. Enter the three debit postings and continue with row 4 until you are going to enter the amount. The Transaction will look like this:

  1. With the cursor in the Credit column, press the Return or Enter key. FirstOffice enters the correct credit amount to balance the entry for you. If you press Return or Enter again, the Transaction will be saved, closed and committed the Transaction to the Nominal Ledger, and a new, empty, Transaction will be opened. You can use this feature when you need to enter several Transactions quickly in one sitting.

Correcting Transactions

In the program you can easily correct Transactions in a legal manner.

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You may not alter an entry in your Ledger just any way you want to. A correction of a Transaction means that you create a new Transaction, which also cancels the old one. The altered Transaction should be marked that it has been cancelled.


When a Transaction is open for data entry, the Operations menu is available in the menu bar, allowing you to make several types of corrections after the Transaction has been entered.

Assume that you have entered the wrong VAT percentage, and that you find out only after entering the Transaction.

  1. Highlight the Transaction containing the error in the 'Transactions: Browse' window and click [Duplicate].

    This creates a copy of the faulty Transaction. First you want to remove the error.

  2. Select 'Swap Debit & Credit' from the Operations menu. This takes the existing Transaction rows and reverses them (what were Credit amounts become Debits). This action thus cancels out the original, erroneous, Transaction.

  3. Then select 'Correction Mark' from the same menu. This will add a new line where you can enter a cross reference to the Transaction containing the error. Note: do not save the Transaction before selecting 'Correction Mark'.

  1. Enter the journal number of the transaction to be corrected, including the financial year prefix, and then on the following rows make new, correct, entries as in the illustration above. Click [Save] when you have finished.

    The new Transaction is saved, and the old Transaction is marked as corrected automatically, as shown in the following picture:

FirstOffice also provides you with another method to correct entries. In manual ledgers, errors are often corrected or eliminated by striking a line (sometimes in red ink) across the entry. A note is made with the initials of the accountant, and a corrected entry is made with the next unused journal number. FirstOffice provides a similar method.
  1. In the 'Transactions: Browse' window, find and double-click the old Transaction you want to change. Select 'Update Mark' from the Operations menu. A new line is added in the Transaction, showing your initials and the original date of the Transaction.

  2. You will now want to cancel - draw a (red) line across - the faulty row. Highlight the row by clicking the number to the left of the row. Press the Backspace key to draw the correction line across the row. Then you can enter the correct information. Save in the normal way.

  1. If the error is in the header area of the Transaction (i.e., the Transaction Date is wrong), it can also be corrected using the 'Update Mark' function. Select the function and change the date as appropriate. There is no need to use the 'Update Mark' function to change the Text or the Reference.
If you are using the Use Preliminary Transactions option (set in the Transaction Settings setting), Transactions can be freely modified providing their Transaction Date falls within a month that has not been closed. There is no need to use the 'Update Mark' or 'Correction Mark' functions in this circumstance, since postings are not considered to be final until the month has been closed. If you attempt to use the 'Update Mark' function in a preliminary Transaction, pressing the Backspace key will not draw the correction line across the selected row but instead will remove the row altogether. Months are closed using the Locking setting in the System module.

If you discover an error in a Transaction that falls within a closed month, you cannot correct it using 'Update Mark'. This is because 'Update Mark' modifies the Transaction and attempts to save it using the original Transaction Date. This falls in a period when modifications are not permitted. Therefore, the only way you can correct such Transactions is by using the 'Correction Mark' function to create a new, correcting, Transaction whose Transaction Date must fall within an open month.

Operations Menu

When a Transaction is open in a record window, the Operations menu is available. The menu has four commands.

Operations Menu - Balance Transaction

If the cursor is in one of the Transaction rows, selecting this command changes Debit or Credit value in that row, so that the Transaction balances. This is particularly practical when you have made an error of the amount in just one line.

An alternative to selecting this function is to place the cursor in the Credit field of the last row and press the Return or Enter key.

Operations Menu - Swap Debit & Credit

This command swaps the entries of a Transaction, transferring all Debit values to the Credit column and all Credit values to the Debit column.

This is useful when you wish to cancel a Transaction with an opposing correction Transaction. To do this, find the erroneous Transaction in the 'Transactions: Browse' window, highlight it and click [Duplicate]. A copy of the Transaction is opened. Select this function and save by clicking [Save]. The erroneous Transaction is now cancelled. Full details are contained on the Correcting Transactions page.

Operations Menu - Update Mark

In the case of a Transaction that contains an error, use this command to insert a special update mark allowing you to record a signature before entering the correct posting on the Transaction. Full details are contained on the Correcting Transactions page.

Operations Menu - Correction Mark

When you use a correction Transaction to correct a Transaction, use this command to enter the number of the cancelled Transaction. The cancelled Transaction will also gain a cross-reference to the correction Transaction. Full details are contained on the Correcting Transactions page.