FAQ Category: Accounting

What you need to do is look for rows in payment_links which have type=0

Then, in acc_trans, you need to identify those rows which have an entry_id of a row which has a 0 amount. That row is probably an fx_transaction row.

The preceding entry_id row is likely one for the same transaction, with a non-zero, non-fx_transaction amount.

You need to insert a new row into the payment_links table with:

  • payment_id: same as for the fx_transaction
  • entry_id: entry_id of preceeding entry in acc_trans
  • type: 0

When you do that, the customer balances should be fixed.

If you find yourself in this situation, the answer is to create a 0 (null) payment: Select both the voiding and the voided invoice in the Cash->Payment (or Cash->Receipt) screen. This will clear the invoices against each other with a net-zero result.

Unfortunately, the LedgerSMB 1.3 version doesn't automatically clear a voiding invoice against a voided invoice upon posting of the former. The workflow described works around this issue.

I have made a payment to a vendor, but entered an incorrect date, far in
the future. Consequently the payment does not show when I try to reconcile
the relevant bank statement.

How do I back-out the incorrectly entered payment?

Cash/Vouchers/Reverse Payment.

Then when you are done adding the payments you want to reverse,
approve the batch.

Tested on: LedgerSMB 1.3.15.
source: http://permalink.gmane.org/gmane.comp.finance.ledger.smb.user/6087

When I open a screen to enter a GL transaction, there is no list to select accounts from. How do I know which accounts are available?

These are AJAX-completed boxes. Just wait after starting to type the account number or the beginning of the account name and a list of items to select from will pop up.

Short answer: Yes

LedgerSMB can tie product sales to a tax class so that VAT can automatically be split off into the required VAT accounts on a sale, and when cancelling an invoice, automatically perform the reverse bookings.

Each product can be 'attached' to an account and the associated % will be applied automatically.

NOTE: LedgerSMB has a Fixed assets module as of 1.3. The FAQ below is out-dated.

LedgerSMB does not have a built-in assett tracking / depreciation feature. Depreciation can be managed manually using General Ledger Transactions. You should probably confirm this with your accountant, but the basic procedure (kindly suggested by Tony Fraser) is, assuming a computer asset over 5 years:

Set up 3 accounts:

  • An asset account such as "Computers"
  • An asset account such as "Accumulated Amortization, Computers" that is normally a negative balance therefor it is a contra account
  • An expense account such as "Computer Depreciation"

Upon purchasing a depreciable asset (in this case, a computer):

Account Debit Credit Notes
On purchasing the computer
Computers 1000.00    
Bank Account   1000.00  
End of Year 1
Computer Depreciation 400.00   (40% of $1000)
Accumulated Amortization, Computers   400.00  
End of Year 2
Computer Depreciation 240.00   (40% of $600)
Accumulated Amortization, Computers   240.00  
End of Year 3
Computer Depreciation 144.00   (40% of $360)
Accumulated Amortization, Computers   144.00  
Bank Account 75.00   (sale of computer)
Accumulated Amortization, Computers 784.00   (reversing entry)
Computer Depreciation 141.00   (residual value)
Computers   1000.00 (reversing entry)


Quite a few users find some of the terminology and accounting processes a little confusing at first. Some of the more popular small business accounting packages tend to hide these aspects of book-keeping from users for simplicity, so with the current user interface there is often some new ideas to grasp.

First step is the manual - the LedgerSMB manual is free and highly recommended reading.

If you would like some background on general accounting practices, there is an (unassociated) tutorial So, you want to learn Bookkeeping" which seems a good place to start.

Another excellent resource is second-hand book stores. Lots of MBA studends sell off their textbooks (presumably to finance their first business rather than pay of gambling debts) so second-hand bookstores will often have very good texts on accounting at bargain prices - these can make great reference books.

Finally it would be remiss not to recommend securing the services of an accountant to help you out with the finer points from time to time, should you feel the need or have a legal obligation to do so.

Wikipedia articles: