A payment is a disbursement of money (usually in the form of a check or currency). It is a transaction that involves the transfer of money or other valuable assets from one party to another in exchange for goods or services received.
Accounting Example:
Account | Transaction / Reference | Date / Client / Note | Debit | Credit |
Inventory Account | Payment | Jan 1, 2022 | 10.00 | - |
Bank Account | Payment | Jan 1, 2022 | - | 10.00 |
Leveraging Railz to use Journal Entries to add Payment:
You may follow the below steps to add a prepayment credit as a Journal entry:
Determine the accounts to be debited and credited: In a payment transaction, the account to be debited is typically the expense or asset account associated with the payment (e.g., inventory, rent, utilities, etc.), and the account to be credited is usually the cash or bank account.
Create an entry with the appropriate accounts to be debited and credited.
Enter the payment amount: Input the payment amount in the appropriate field of the journal entry.
Include any additional information: You may want to include additional information in the journal entry such as the payment method (e.g., check, credit card, cash, etc.), the payee or recipient of the payment, and any other relevant details.
Payload example:
You can use our POST /journalEntries endpoint to add a $10.00 debit line item as a payment, for example, from the inventory account and a $10.00 credit line item, for example for the bank account.
{
"connection":
{
"businessName": "{{businessName}}",
"serviceName": "{{serviceName}}"
},
"data":
{
"currency": "USD",
"currencyRate": 1.3,
"postedDate": "YYYY-MM-DD",
"lines":
[
{
"accountRef": "ID OF INVENTORY ACCOUNT FROM ASP - SEE COA END POINT ",
"description": "LINE ITEM DESCRIPTION",
"amount": 10,
"type": "debit"
},
{
"accountRef": "ID OF BANK ACCOUNT FROM ASP - SEE COA END POINT ",
"description": "LINE ITEM DESCRIPTION",
"amount": 10,
"type": "credit"
}
],
"memo": "SOME MEMO"
}
}
For more information: