Financial accounting

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The accounting model at a glance

CashSheet is built on full double-entry accounting. Every transaction posts a balanced journal entry — debits equal credits, always. You don't hand-author the entries in normal use; they're generated by the workflow that triggered them (invoice, bill, sales order, inventory movement, production output). The result is that the books are always live with reality and the trial balance always ties.

The model is compatible with GAAP and IFRS reporting principles.

Chart of accounts

Open Accounting → Chart of Accounts. A standard chart is seeded during provisioning — assets, liabilities, equity, revenue, expenses, with reasonable sub-accounts. You can edit any of it.

To add an account:

1. Click New Account.
2. Pick a parent account (this anchors it in the reporting hierarchy).
3. Set the type — Asset, Liability, Equity, Revenue, Expense.
4. Set the account number and name.
5. Save. The new account is immediately available for transactions and reports.

If you're migrating from another system, you can CSV-import a full chart of accounts via Accounting → Data Import → Chart of Accounts.

Entities and entity units

The entity is your legal organization (the “company” in QuickBooks vocabulary). Every transaction is attached to an entity, and most reports roll up at the entity level.

Below the entity, you can define entity units — sub-divisions for segmental reporting. Common patterns: one entity unit per cost center, per business line, or per geographic region. Entity units are optional; small organizations skip them entirely.

For multi-facility tenants, each facility is typically not a separate entity (it's the same legal company), but operations data carries a facility_id for floor-level reporting. The entity-level rollup still pulls from all facilities.

Customers and vendors

Accounting → Customers and Accounting → Vendors. Each record holds contact info, payment terms, tax IDs, ship-to addresses, and any custom IDs your business uses (e.g. GLN, DUNS).

Common tasks:

• Create. Click New, fill in the form, save.
• Import in bulk. CSV import is under Data Import in the same area.
• Merge duplicates. If two customer records reference the same real customer, you can merge them — historical transactions on the loser ID re-attach to the winner. This is irreversible; double-check first.
• Suspend. If a customer's on credit hold, set their status to suspended. New sales orders to that customer get blocked until you reactivate.

Sales order → invoice → payment

The typical happy path:

1. Create sales order. Accounting → Sales Orders → New. Pick the customer, add line items (each line is a product code, quantity, and price). If CutSheet is on, the order's feasibility is checked via ATP.
2. Confirm. Set status to Confirmed. This is the point at which inventory is committed and the LP commits to producing it.
3. Ship. When the order ships, mark it Shipped. Inventory drops, COGS posts, and an invoice is generated automatically (unless you've configured deferred invoicing).
4. Invoice posted. The journal entry: debit Accounts Receivable, credit Sales Revenue, debit COGS, credit Inventory. All four legs balanced.
5. Receive payment. When the customer pays, record the receipt under Receipts. The journal entry: debit Cash/Bank, credit Accounts Receivable.

At any point you can drill into the journal entries from the invoice detail page — there's a “View JE” link on every transaction.

Bill workflow

Bills (a.k.a. AP invoices) work in reverse of customer invoices:

1. Receive bill. Accounting → Bills → New. Pick the vendor, set the bill date and due date, add line items expensing to the appropriate accounts.
2. Approve. Optional but recommended — bills can go through an approval stage before they hit AP. Configure under Accounting → Settings → Approval Workflow.
3. Approved bill posts. Journal entry: debit Expense (or Asset for inventory/capex), credit Accounts Payable.
4. Pay. When you cut a check or send an ACH, record the payment. Journal entry: debit Accounts Payable, credit Cash/Bank.

Bank accounts and reconciliation

Bank accounts are GL accounts that represent your actual bank accounts. Set them up under Accounting → Bank Accounts.

OFX/QFX import: CashSheet imports bank statement files directly. Drop a .ofx or .qfx file on Bank Accounts → Import Statement; the system matches transactions to existing receipts and payments automatically. Unmatched transactions are flagged for manual reconciliation.

For reconciliation: Bank Accounts → Reconcile, pick an ending date and balance, match transactions, save. The reconciled flag locks those transactions from edits.

Journal entries

Most journal entries are auto-posted by the workflow that created them (invoices, bills, sales orders, inventory movements, production runs). You can also create manual journal entries for adjustments — accruals, prepayments, intercompany allocations, depreciation.

Accounting → Journal Entries → New Manual JE:

1. Pick the entry date and the ledger.
2. Add debit and credit lines. The form prevents you from saving until debits equal credits.
3. Add a memo explaining the reason — auditors will thank you later.
4. Save (and optionally post). Posted entries hit the GL; unposted entries are drafts.

Every journal entry retains a full audit trail: who created it, when, who last edited it, what changed. The trail is queryable from the Ops Console Audit Log view.

Closing entries

At period-end (typically month-end), run closing entries to zero out revenue and expense accounts to retained earnings. Accounting → Closing Entries → New.

Closing entry runs are reversible — if you discover an error after closing, you can unpost the close, edit the underlying transactions, and re-run. Permission to run closing entries is gated by the run_closing_entries permission, which is in AccountingAdmin only by default.

Financial statements

Three statements, always live:

• Balance Sheet — Assets / Liabilities / Equity as of a date.
• Income Statement — Revenue minus Expenses over a date range, with profit margin breakdown.
• Cash Flow Statement — Operating, investing, and financing activities, derived automatically from the GL.

All three are under Accounting → Reports. You can filter by entity unit, date range, comparison period (e.g. month-over-month), and export to CSV / PDF / Excel.