Transactions are records of money movement. Use them when money has actually moved, such as a purchase, expense, fee payment, return, or sale.
What Transactions Track
A transaction can track:
- Type.
- Vendor or source.
- Date.
- Amount.
- Who paid.
- Reimbursement details for some expenses.
- Budget category.
- Linked items.
- Notes.
- Receipt status.
Transactions Are Not Planned Payments
Do not create a transaction just because you expect money to be paid later.
Use an invoice for a planned demand, such as a design fee installment. Create or link a transaction when the payment actually happens.
Common Transaction Types
- Purchase: money spent to buy something.
- Expense: non-itemized project cost, such as delivery or install.
- Fee: money received by the business for services.
- Return: money or value credited back after an item is returned.
- Sale: movement where the business acquires or transfers items under the inventory model.
Itemized Versus Non-Itemized
Some budget categories are itemized. These are used for physical products where individual items matter.
Non-itemized categories are used for costs that do not need item records, such as fuel, delivery, or install.