What a bill posts to the general ledger

When you create a bill in Usystems, the system automatically posts (records) the transaction to your general ledger. Understanding these entries helps you reconcile your accounts and verify your financial statements.

How a bill posts to the GL

Every bill creates two sides of an entry:

Debit (increases): The expense or asset account that represents what you purchased.

• If it's an office supply purchase: Office Supplies Expense
• If it's a delivery or service fee: Delivery Expense or Service Expense
• If it's inventory (goods for resale): Inventory or Cost of Goods Sold (varies by business)

Credit (increases liability): Your obligation to the vendor, recorded as Accounts Payable.

Example: You receive a bill for $500 in office supplies

This entry shows:

• Your expense increased by $500.
• Your liability (amount owed) increased by $500.

When the bill posts

• On creation (draft state): The bill may not post immediately. Check your company's settings.
• On confirmation/posting: Most bills post as soon as you save and confirm them (or when they move to "posted" state).
• If inventory: If the bill includes goods, a separate inventory receipt may post (see the next article).

Multi-currency bills

If the bill is in a foreign currency, the system:

• Converts the bill amount to your base currency using the exchange rate on the bill date.
• Records the conversion rate in the GL entry for audit purposes.
• Posting in base currency ensures your GL, trial balance, and financial statements are in one currency.

How payments affect the GL

When you pay a bill, the GL posting changes:

Original entry (when bill was created):

Payment entry (when payment is made):

After both entries, the liability is cleared and you've recorded the cash outflow.

Reversed or adjusted bills

If you delete a bill or issue a credit memo against it:

• The original GL entry is reversed (the debit becomes a credit, and vice versa).
• The reversal entry is posted with the date of the reversal, creating a clear audit trail.

Why this matters

• Account reconciliation: Your GL balance for Accounts Payable should match the sum of all unpaid bills.
• Financial statements: Expenses and liabilities on your income statement and balance sheet reflect these GL postings.
• Tax reporting: Some expenses (e.g., cost of goods sold) affect your tax liability. The GL entries are the source of truth.
• Audit trail: Each GL entry is timestamped and linked to the bill, so auditors can trace transactions.

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