Bill to Journal Entry Linking

Transaction Traceability

Every bill and payment in prorganizer.space is linked to its corresponding journal entry, providing a complete audit trail from source document to general ledger.

How Linking Works

When you create a bill, the system:

1. Creates a journal entry with the appropriate debits and credits
2. Links the bill to that journal entry via a reference ID
3. Maintains the connection for audit and reporting purposes

Bill Creation Journal Entry

When a bill is recorded:

Debit:  Expense Account(s)     [Bill amount - GST]
Debit:  GST Input Credit       [GST amount]
Credit: Accounts Payable       [Total bill amount]

This recognizes the expense and liability when the bill is received.

Payment Journal Entry

When you record a payment against the bill:

Debit:  Accounts Payable       [Payment amount]
Credit: Bank Account           [Payment amount]

If there's a forex difference (for foreign currency bills):

Debit/Credit: Forex Gain/Loss  [Difference amount]

Viewing Linked Entries

From any bill, you can:

• See the linked journal entry reference
• Navigate to the full journal entry details
• View both the original entry and payment entries

Benefits of Linking

1. Audit trail: Trace any GL balance back to source documents
2. Reconciliation: Match bank payments to specific bills
3. Compliance: Demonstrate transaction validity to auditors
4. Error detection: Identify mismatches between bills and entries

Bill Cancellation

When a bill is cancelled:

• The linked journal entry is automatically voided
• A reversing entry is created to maintain the audit trail
• The bill shows as cancelled with void date

For Auditors

The linking system supports:

• Full traceability from trial balance to source documents
• Date-stamped journal entries matching bill dates
• Clear references between related transactions
• Void/cancellation history for transparency

Tips

• Always record payments through the bill payment feature to maintain links
• Use the journal entry reference when reconciling accounts
• Check linked entries when investigating account discrepancies