Transaction type describes what kind of money movement or inventory movement Ledger is recording.
Purchase
Use for money spent to buy items or pay for costs.
Purchases usually increase project spend.
Expense
Use for non-itemized project costs such as delivery, install, fuel, storage, or similar services.
Fee
Use when money is received by the business for services.
If the fee has not been collected yet, add it to an invoice as a New Charge instead of creating a transaction.
Return
Use when an item or amount is returned or credited.
Returns usually reduce project spend.
Sale
Use for inventory movement cases where the business acquires or transfers items according to Ledger's inventory model.
Most employees will usually see this through actions like Sell to Project or Return to Inventory, not by manually choosing complex sale mechanics.
Canceled
Canceled transactions are excluded from budget and report calculations.