Document Types

Document Types functionality has been added to simplify the process of transaction reconciliation, so you don’t have to remember which transactions should generate which entries in the system and to avoid errors caused by incorrect data entry.

Transactions Tab

This tab allows you to configure all the entries that are created when reconciling transactions.

All transactions are grouped into income and expenses. For instance, if it is an incoming transaction, you will be offered a set of document types from the “Income” group, and if it’s an outgoing transaction, the type will come from the Expenses group.

Field

Description

Name

Name of the document type

Type

Type of operation (income or expense)

Debit Account

The entry is taken from the chart of accounts

Credit Account

The entry is taken from the chart of accounts

It is important to note that for transactions categorized as Income, the Dr (Debit) part of the entry will always be known and will belong to the bank category (non-cash or cash accounts). Similarly, for transactions categorized as Expenses, the Cr (Credit) part will be known and will also belong to the bank category (non-cash or cash accounts), so we can simply omit to specify them.

Field

Description

Reconciliation document type

Specifies the document explaining the transaction and links to it, such as invoice payment, salary, etc.

Income/Expense Category (optional)

Responsible for classifying the transaction for Cashflow and P&L; you need to choose an account that will identify the transaction as income or expense (accounts of category 70 and 80)

This field is mandatory for transactions where the Income/Expense category in the analytics section Fields is set to Hide mode. It is typically used for fixed entries that will not have variable values. In other words, this rule will automatically apply to all subsequent transactions as soon as you select a specific document type, such as Salary payout, as in the example above.

Field

Description

Project

You can also specify which project will be selected by default for this document type overall

Fields — options for selecting which fields need to be filled out during the transaction reconciliation process.

Field

Description

Income/Expense Category

Income or expense category (important to specify for this operation to appear in Cashflow if it is not selected in the Income/Expense category line (optional))

Counterparty

Field for selecting the counterparty (client or vendor); it is not pulled from the project, so it should be made mandatory

Project

Field for selecting a project from the list (required for reconciling all transactions that you want to view by project)

Employee

Field for selecting an employee from the list (required for reconciling transactions related to specific employees)

Field

Description

Hide

Hide the field if it is not needed for this transaction type

Show

The field will be available for entry but not mandatory

Required

The field will be required to fill in during the reconciliation of this transaction type

If the amount is not fully covered, then create an additional transaction — a checkbox that allows setting up an additional entry that will be generated if the payment amount is incomplete. For instance, it may include a bank fee. In this case, if this option is selected, the system will automatically assign the remaining amount to the entry you specify below, such as assigning it to a bank fee.

Examples of setting up certain document types

Example 1: Payment of an Invoice from a Client

Payment for an invoice generates income, and on the credit side, it is recorded as the closure of receivables on account 20.036.001.

In the Income/Expense category field, we specify that this is a payment from a client so that this transaction is reflected in the Cashflow. The Counterparty and Project fields are marked as required because we want to close the debt of a specific client for a specific project, and these must be selected during payment reconciliation.

Example 2: Salary payout to employees

Salary payment is the settlement of debt to employees, so the Type is Expense. On the debit side, it is the closure of account 50.006.009. In the Income/Expense category field, you should specify that this operation is an expense in the form of salary payment. The Employee field is required because it’s necessary to record which employee’s debt has been settled.

FAQ

Question: Is there an example of basic settings for Document types?
Answer: Yes, we can provide an example of basic settings, and the company can further adjust them as needed.

Question: If the company has already used the ITFin financial functionality and performed reconciliation manually, how should they transition to using Document types?
Answer: It is sufficient to configure the document types for the transactions you are currently using just once through the Document types, and then start using them for reconciliation.

Question: If the company has established and uses reconciliation rules, does this functionality complement Document types, or should any unresolved issues be considered?
Answer: If you want to continue using the rules, leave the Income/Expense Category and Project fields empty in the Document types. These will be pulled from the reconciliation rules settings, while the entry itself will be generated according to the Document types settings.

Last modified