Before you can enter your transactions in a batch, you need to sort your source documents according to the type or nature of the transactions. You then need to select the correct batch type or journal to capture the transactions of a similar nature. You may only select a batch type from the available batch types (journals) in which you enter your transactions from source documents.

Any business issues source documents and hands the original documents to its customers or debtors or other parties with whom a transaction is concluded. These source documents are generated internally and the copies of such source documents are used to enter the transactions in the journals or batch types.

On the other hand a business receives original source documents from its suppliers or creditors or any other party with whom a transaction is concluded. These source documents are generated externally and the business would usually receive the original source documents, which are then used to enter the transactions in the journals or batch types.

Batch types (journals) are used to enter the details of the transactions and to summarise the details into.

In any business the transaction data on source documents are entered in the following subsidiary journals or books of first entry:

For each of these subsidiary journals or books of prime entry, you would debit specific accounts and credit specific accounts applicable to the specific subsidiary journal. This will definitely help to eliminate or significantly reduce the errors that may occur when recording and summarising the transactions or when transactions are posted to the ledger.

The entries for each of these subsidiary journals or books of prime entry are as follows:

The General Journal is used for other transactions which cannot be classified into any of the transactions that are entered into the subsidiary journals listed above.

Other journals, which may be required, are:

• Payroll Journal or Salary Journal
• Depreciation Journal
• Cost of Sales Journal (if you are a trader)
• Credit Card Journal

You would normally record your depreciation transactions and payroll transactions with a General Journal. If you open separate journals for these transactions, you could easily reconcile your depreciation and payroll transactions with your ledger accounts or asset registers. You need to assess the volume and complexity of your transactions to decide, which transactions you wish to enter into separate journals or batch types.

- Should you wish to enter transactions of a similar nature into any other batch type, which is not available, you first need to create or add the batch type in the Setup→System Parameters→Batch Type menu option.