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Understanding Accounting Transaction Types
Understanding Accounting Transaction Types
Updated yesterday

We've designed a comprehensive set of accounting transaction types to help you efficiently manage your financial operations. This guide will walk you through each transaction type and its typical use in BoldTrail BackOffice Accounting operations. These transactions sync 1:1 to QuickBooks if the Accounting Integration is installed.

Invoice

An invoice is a formal document used to request payment for services or goods. In real estate management, invoices are typically issued to agents, property owners, or service providers. Each invoice includes:

  • Issued To: The recipient of the invoice

  • Account: The bank account associated with the transaction

  • A/R: Accounts Receivable GL account for this transaction. (Note: When processing transactions, QuickBooks uses the default Accounts Receivable (A/R) account for posting invoices. Regardless of any alternative selections you make, all invoices will synchronize to this default A/R account.)

  • Price: Total amount due

  • Line Items: Detailed breakdown of services or charges

    • Additional Features:

      • Ability to add text memos to line items

      • Tracks total amount, payments received, and remaining balance

      • Can be linked to a specific transaction in the ledger

Example: An invoice issued to a property owner for monthly management services, breaking down charges like management fee, marketing expenses, and tenant screening costs for a rental property.

Bill

A bill represents an official request for payment that your business receives from a vendor or service provider. Key characteristics include:

  • Bill Date: The date the bill was issued

  • Due Date: When payment is expected

  • Bill Number: Unique identifier

  • Payee: The entity issuing the bill

  • Line Items: Detailed breakdown of charges

    • Account: Expense GL account

    • Memo: Description of the charges

    • Qty: Number selected

    • Amount: Price per unit

Example: A bill from a home staging company for preparing a listing property, detailing costs of furniture rental, professional staging, and setup services for a property about to be listed for sale.

Credit Memo

A credit memo is essentially a reverse invoice, where a credit is issued to your business. Typical scenarios include:

  • Refunds for overpayments

  • Compensation for service issues

  • Adjustments to previous billing

Required Fields:

  • Issued To: The party issuing the credit

  • Account: Associated bank account

  • Price: Credit amount

Example: A credit memo issued by a home inspection company after they accidentally overcharged for an inspection, providing a credit to be applied to future services.

Deposit

A deposit record tracks money received and transferred between accounts while capturing the financial journey of incoming funds.

Required Fields:

  • Received From: Source of the deposit

  • Account: Source account

  • Payment Method: How the funds were received

  • Amount: Deposited funds

  • Deposited To Account: Destination account

Example: Recording checks to the bank after they're input as invoice payments.

Received Payment

Tracks incoming payments to your business and helps reconcile income and track cash flow.

Required Fields:

  • Payment Method: How payment was made (check, transfer, cash)

  • Deposited To: Bank account receiving the funds

  • Payer: Who made the payment

  • Amount: Payment value

  • Outstanding Transactions: You can apply the payment to outstanding invoices. Any funds not applied to an invoice are recorded to the "Unapplied received funds" balance sheet liability account.

Example: Receiving a commission split payment of $7,500 from a successful $750,000 property sale, split between listing and buying agents.

Applying existing credits to outstanding agent invoices

  1. Go to Agent's ledger > Actions > Record payment received

  2. Under the "CREDITS" section, you can link credit memos to specific outstanding invoices from transactions.

  3. This will result in a set of transaction records in the general ledger ledger that:

    • Organize money from credit memos

    • Apply credits to existing invoices

    • Maintain a clear audit trail of financial adjustments

Example Scenario:

  • An agent has a $500 credit memo from a previous billing error

  • You have an outstanding invoice for $1,000

  • Using the Credits section, you can:

    1. Apply the $500 credit memo to the invoice

    2. Reduce the invoice balance to $500

    3. Create a transparent ledger entry showing the credit application

    4. Simplify account reconciliation

Made Payment

Document payments your business makes to others. Made Payment can be applied partially or fully to a bill.

Required Fields:

  • Payment method

  • Payment from

  • Payee

  • Amount

Example: Paying a referral fee of $3,000 to another brokerage for a client referral that resulted in a successful property sale.

Journal Entry

A flexible tool for complex accounting transactions where traditional transactions or workflows do not fully meet the requirements.

It can be linked to a specific transaction and includes:

  • Date of entry

  • Reference number

  • Descriptive notes

  • Debit and credit line items

Example: Adjusting a commission split after a complex transaction where a junior agent assisted the lead agent, redistributing the commission percentages.

Transfer

Moves funds between bank accounts within your business:

Required Fields:

  • From Account: Source of funds

  • To Account: Destination account

  • Amount: Transferred funds

Example: Moving funds from the general operating account to a dedicated account for upcoming property marketing expenses.

Refund

Processes money returned to an agent or client while impacting agent's balance.

Required Fields:

  • Issued To: Recipient of refund

  • Issued From: Source bank account

  • Payment Method

  • Account: Income GL account where contra-revenue will be posted.

  • Price: Refund amount

Example: Refunding a listing preparation fee to a property owner if the property doesn't list within an agreed timeframe.

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