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This text refers to program version 4.3  

Introduction

A transaction record is the proof of a transaction, e.g. a receipt for something you have bought, or a bank statement showing that an invoice has been paid by one of your customers. Every event in the business that involves its finances should be supported by a transaction record.

All financial events should be recorded in date order as they occur. When each event is recorded in the accounts, a transaction is created. The transaction classifies the event according to certain accounting rules, allowing the production of reports and the later recollection of the event. Transactions are recorded in a daily journal and each is distinguished by a unique sequence number. Their supporting documents (the hard copies of the transactions) are kept in a file, marked with the same sequence numbers (and with the date on which the transaction occurred). The transaction should also contain a code, or account, classifying its nature. This is where your Chart of Accounts comes in as a tool for the systematic recording of financial events.

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