In the previous article, we saw the initial set up which involved 4 simple steps. We will continue from there.
STEP 5: Enter Transactions
This is the only other data entry sheet in the template. This is where your day-to-day data entry will happen.
All financial transactions in your business need to be entered here, all in one place. This is designed to make it simple and easy for you to enter data.
There are 7 required fields for all transactions.
Date: Date of transaction
Type: This is the type of financial transaction.
The template supports 14 types of transactions
- Invoice: When you create an invoice for your customer, for the product or service you provided
- Bill: When you receive a bill from your supplier or vendor, for the product or service you received
- Instant Sale: When you generate a sale, for providing product or service to your customer.
- Instant Expense: When you spend money, for receiving product or service from your supplier or vendor.
- Bulk Pymt from Customer: When you receive a bulk payment from customer for invoices you sent to them earlier. (this is not for when you receive a full payment from customer for one specific invoice)
- Bulk Pymt to Supplier: When you send a bulk payment to supplier for bills they sent to you earlier. (this is not for when you send a full payment to supplier for one specific bill)
- Refund to Customer: When you must refund money to your customer
- Refund from Supplier: When you receive refund from supplier
- Issue Customer Credit: When the customer returns your product and you want to issue a customer credit (or credit memo). There is no actual money transfer. It is just that you owe the customer an amount.
- Apply Customer Credit: A follow up to the previous transaction type (Issue Customer Credit). When the customer wants to use the credit and purchase from you.
- Receive Supplier Credit: When you returned product to supplier and they issue a credit (or credit memo). There is no actual money transfer. It is just that they owe you an amount.
- Use Supplier Credit: A follow up to the previous transaction type (Receive Supplier Credit). When you want to use the credit and purchase from supplier.
- Transfer From: When you transfer money from one account to another, you enter a ‘Transfer From’ transaction for the account you are transferring money from.
- Transfer To: When you transfer money from one account to another, you enter a ‘Transfer To transaction for the account you are transferring money into.
Enter the name of the customer if it is customer related. Enter the name of the supplier or vendor if it is supplier/vendor related.
All the transaction amounts are entered in positive values. Please do not enter expenses as negative amounts. The template will automatically take care of that in behind the scenes calculations.
The template supports only one currency at a time. So, all the amounts need to be in same currency. You can change the currency but there can be only one currency in the file.
As discussed in the Settings section, there are 5 categories to choose from. Every transaction should belong to one of the categories, for it to be included in profit and loss statement.
Sub category options depend on what you have entered for each category, in the Settings sheet.
If the category is income, I see the following sub categories in my drop-down. That’s because that is what I had entered in the Settings sheet.
Similarly if the category is Operating Expense, the sub categories will be different. They are dynamically created.
You can tag each transaction to a specific account. Account list will display the accounts you have established in the Settings sheet.
There is an optional notes field where you can type in notes about the transaction for your reference.
Invoices and Bills:
There are 3 additional fields required for Only Invoices and Bills. For all other transaction types, they are not required.
Invoices and Bills are different since when you generate an invoice, there is no cash flow.
You are generating an invoice which has to be paid by customer by a certain date (DUE DATE) and you may receive a payment later (PAID DATE) which is when there is cash flow.
Bills work similarly as well.
In order to track this, we have three fields Document #, Due Date and Paid Date.
Document # and Due Date should be filled out when the invoice or bill is created.
Paid Date should be filled out when the payment is received.
For detailed instructions on examples of each of 14 types of transactions, please see this article