FAQ: Accounting Impact

Do all sales receipts create the same accounting entries?

Mostly, yes — all receipts debit Cash and credit Revenue (and Tax Payable if applicable). However, if the receipt includes a discount, return, or is denominated in a different currency, the entries may be more complex. Ask your accountant if you're unsure.

Why is there a delay between recording a receipt and seeing it on my income statement?

There usually is not one. Most accounting systems update the income statement in real time. If you see a delay, it may be due to report caching or a nightly batch process. Contact your administrator if the reports seem stale.

If I record a receipt in one currency but my company books are in another, how does that work?

Usystems uses the exchange rate on the date of the receipt to convert the amount to your base currency. The converted amount is posted to your ledger. If the actual rate changes later, you may need to record an exchange gain or loss. Your accountant can help set this up.

Can I change the accounting account that a receipt posts to?

This depends on your system configuration. Some companies allow users to specify the account; others have it fixed by product type or category. Ask your administrator or accountant whether you can change the account.

What is the difference between cash basis and accrual basis accounting for receipts?

• Cash basis: Revenue is recorded only when money is received (which is what receipts do — they record money upfront).
• Accrual basis: Revenue is recorded when earned, regardless of when payment is received (which is what invoices do — they record the sale even if payment is due later).

Sales receipts are always a cash basis transaction. If your company uses accrual accounting, both receipts and invoices are used to produce your financial statements.

Does a sales receipt affect accounts receivable (money owed by customers)?

No. Receipts do not create an accounts receivable balance because payment is received immediately. Only invoices (where payment is due later) create accounts receivable entries.

Why do taxes on receipts post to a separate account instead of directly to revenue?

Tax must be tracked separately so you can report it to the government and reconcile it to actual tax payments. At month- or quarter-end, you transfer the tax payable balance to the appropriate tax liability account.

If I void or delete a receipt, does it reverse the accounting entries?

If your system allows deletion (which is not always the case), Usystems will reverse the original entries by posting negative (opposite) amounts. This ensures your ledger stays balanced. Check with your administrator about the deletion policy.