Transactions play a fundamental role in bookkeeping. They specify the flow of your money between the accounts. In Finances a transaction must have a date and two or more postings. A transaction can also have a note, payee, number and attachment.
A posting specifies in a transaction how much money is transfered from or to an account. In the example below one posting reduces the Cash account by $12, and the another posting increases the Food account by $12.
2016-09-15 Pizza Assets:Cash -$12 Expenses:Food $12
In double-entry bookkeeping the sum of all postings in a transaction must be zero. This means that the following transaction is invalid because
-$10 + $12 = $2.
2016-09-15 Assets:Cash -$10 Expenses:Food $12
You pay $75 for groceries at Waltmart from your checking account.
2017-01-01 Walmart Assets:Bank -$75 Expenses:Food:Groceries $75
You get $2.000 salary on your checking account.
2017-01-15 Salary Assets:Bank $2.000 Income:Salary -$2.000
You pay $92 in a steak house – the bill is $80 and you tip $12.
2017-01-20 Steak house Assets:Cash -$92 Expenses:Food:Eating Out $80 Expenses:Tip $12
You pay $50 for 2 cinema tickets ($25 each – one for a friend and one for you). The friend will give the money back later.
2017-01-21 Cinema Tickets Assets:Cash -$50 Expenses:Entertainment $25 Assets:Receivables $25 Account Balances ---------------- Assets:Cash -$50 Assets:Receivables $25 Expenses:Entertainment $25
When you look at the Receivables account, you see that it has a balance of $25. When you get the money from the friend, you transfer $25 from the Receivables to the Cash account.
2017-01-25 Cinema Ticket Assets:Cash $25 Assets:Receivables -$25 Account Balances ---------------- Assets:Cash -$25 Assets:Receivables $0 Expenses:Entertainment $25
Your receivables are now zero because nobody owes you money anymore. Also in the Entertainment account you see that you have expenses of $25 – which is correct because the other $25 were not your expenses.
Transactions can repeat in a specific interval. For example for your Netflix subscription, you can configure the repeat interval of the transaction to be every month. A repeating transaction can never end, end on a date or end after a specific number of times.
You can also configure your repeating transaction to only occurs on workdays – some banks only process transaction on workdays.
You can attach images and PDF files to transactions. Attachments are stored internally by the app. This means you can delete the original file if you need more space on your device.