How the books work
Double entry, the ledger accounts v1 uses, and what every transaction posts.
Lapitap keeps a double-entry ledger. You never post journals by hand for everyday work: every sale, purchase, payment, note, refund, return, expense, owner transaction, transfer and tax payment writes its own balanced entry (debits = credits), inside the same all-or-nothing step as the business action. If the ledger entry fails, the whole action is rolled back — there are no orphan invoices.
Design: cost at purchase, revenue at sale#
v1 expenses the cost of goods when you purchase and books revenue when you sell. A sale therefore has no cost-of-goods or inventory leg: stock value is tracked in the product register and shown on the Balance Sheet by valuation, not by ledger movement. Profit shown for sold items is the difference.
What each action posts#
| Action | Debit | Credit |
|---|---|---|
| Purchase invoice | COGS (by category) + Input Tax | Accounts Payable (2000) |
| Purchase payment | Accounts Payable | Payment method's account |
| Debit note — return | Accounts Payable (balance reduction) + Debit Notes Receivable (1400) | COGS + Input Tax |
| Debit note — warranty claim | Debit Notes Receivable | Warranty Expense |
| Debit note applied to a payment | Accounts Payable | Debit Notes Receivable |
| Purchase return (cash back) | Payment method's account | COGS |
| Sale invoice | Accounts Receivable (1100) | Revenue (by category) + Sales Tax Payable (2100) |
| Sale payment | Payment method's account | Accounts Receivable |
| Credit note — return | Revenue + Sales Tax | Accounts Receivable (balance reduction) + Credit Notes Payable (2400) |
| Credit note — warranty claim | Warranty Expense | Credit Notes Payable |
| Credit note applied to a payment | Credit Notes Payable | Accounts Receivable |
| Sale refund (cash back) | Sales Returns (4100 / 4110 / 4120) | Payment method's account |
| Expense | Expense type's account | Payment method's account |
| Owner injection | Payment method's account | Capital (3000) |
| Owner withdrawal | Drawings (3200) | Payment method's account |
| Tax payment | Sales Tax Payable (2100) | Payment method's account |
| Fund transfer | Destination account | Source account |
| Buy-In | Category cost account | Paid By method's account |
| Laptop upgrade | (balanced entries for the part sold, part bought and service charges) |
Well-known account codes: 1100 Receivable · 2000 Payable · 2100 Sales Tax / Input Tax · 1400 Debit Notes Receivable · 2400 Credit Notes Payable · 3000 Capital · 3200 Drawings · 3999 Current Period Earnings · 5000 / 5010 / 5020 cost accounts with matching inventory 1200 / 1210 / 1220 and returns 4100 / 4110 / 4120.
Reversals, never edits#
An action that is undone — a void, bounce, cancel, refund cancel, edit — reverses the old entry (a mirror with debits and credits swapped; the original is marked Reversed) and, for edits, posts a fresh one. Both remain visible in the Day Book and in statements, so figures always reconcile.
Pending vs Cleared#
Money that is not yet confirmed (a cheque, a bank transfer) is Pending and posts nothing until you Verify it. Only Cleared movements affect the ledger and invoice balances. See Collecting payments.
Where posting accounts come from#
Revenue, COGS, inventory and return accounts come from the product's category; payment-side accounts come from the payment method; expenses from the expense type; taxes from the tax configuration.