FAQ: Accounting Impact

Q: Does the cash purchase post to the ledger immediately when I save it?

A: Yes. As soon as you save a cash purchase, the system posts it to the general ledger. The expense or asset account increases, and the cash account decreases. You'll see the transaction immediately in your journal.

Q: If I delete a cash purchase, does the posting reverse?

A: Yes. When you delete a cash purchase, the system reverses the posting. The amounts come back out of the general ledger. However, if the purchase has already been used in other documents (like an inventory allocation or a related payment), you may not be able to delete it—Usystems will warn you.

Q: Can I edit a cash purchase after it's posted?

A: Yes, you can edit certain fields (like amounts or account selections) after posting. When you change an amount, the system automatically adjusts the ledger posting to match. However, some fields may be locked or restricted after posting, depending on your system settings.

Q: What's the difference between a cash purchase and a regular purchase order?

A: A cash purchase assumes you are paying immediately. A purchase order is an open commitment to buy, but payment may come later. In accounting terms, a cash purchase posts both the expense and the payment in one step, while a PO may be tracked separately until the invoice and payment are made.

Q: Can I use a currency other than my default currency for a cash purchase?

A: Yes. You can record a cash purchase in a foreign currency. Usystems will apply the current exchange rate to convert it to your default currency for the ledger posting. The exchange rate is based on the date of the purchase or a rate you set manually.

Q: Do cash purchases affect my profit and loss statement?

A: Yes, if you buy expenses (like rent or office supplies). These post to expense accounts and reduce your profit. If you buy inventory or assets, those post to balance sheet accounts and don't directly affect profit until the goods are sold or the assets are used.

Q: Can I see the full ledger trail for a cash purchase?

A: Yes. Go to the Journal, find your cash purchase by date or amount, and click it to view the full debit and credit posting. You can also drill down to see the account names and amounts for each entry.