What a cash purchase posts to the general ledger

A cash purchase creates two accounting entries. When you record a purchase of goods or services and pay immediately, the system records the transaction in two accounts: it increases (debits) your expense account or asset account (depending on what you bought), and decreases (credits) your cash account. This keeps your books balanced and gives you a clear record of where your money went.

What happens to your accounts

When you save a cash purchase in Usystems, the system automatically posts to the general ledger:

• Debit side: Expense account (if you bought office supplies, rent, or repairs) or Inventory/Asset account (if you bought stock or equipment)
• Credit side: Cash account (the money account you paid from)

For example, if you buy 100 units of product at 100 AFN each for 10,000 AFN cash:

• Inventory account increases by 10,000 AFN
• Cash account decreases by 10,000 AFN

If you buy office supplies for 2,000 AFN cash:

• Office Supplies Expense increases by 2,000 AFN
• Cash account decreases by 2,000 AFN

Why this matters

These automatic postings ensure your balance sheet stays accurate. Your cash balance always reflects what you have, and your expense or asset accounts show exactly what you spent on and what you own. You can run reports at any time and your numbers will be correct.

Where to see the posting

After you save a cash purchase, the transaction appears in your journal. To view it:

Go to Journal → Transaction List and Open in Usystems, then find your cash purchase by date or amount. Click it to see the debit and credit entries.