Accounting documents

An accounting document is the source record for an expense, credit, invoice or adjustment. It carries a record number, subject, date, gross amount, organization, owner and counterparty. Its document lines describe the underlying items and account. The Accounting Preparer builds the document in Draft, checks the current revision and sends it to Review. An Accounting Reviewer decides whether that revision is ready to become Approved.

Use the line detail to make the gross amount explainable. Quantity and unit price produce a net line amount; tax then contributes to the document gross. If a document changes after review, the revision number matters because an earlier decision should not silently cover different amounts. For a small office supply purchase, the preparer can record the partner, line description, quantity, unit price and tax, then compare the total with the receipt attached to the document.

• Own the record. Assign the document to the preparer responsible for its lines and evidence.
• Check the revision. Reconcile line net and tax to the gross amount before asking another person to review it.
• Trace the outcome. Keep Draft, Review, Approved, Posted, Reversed and Rejected separate in the document lifecycle.

The voucher is linked to this document, but its custody decision and the document’s accounting decision answer different questions. Review the amount and counterparty on the document even when the voucher has already been approved. Posting happens after document approval and uses a journal in an open period.

Agree how record numbers and subjects identify real expenses, who owns each document and which counterparty record the team uses. Decide how to classify an expense versus an adjustment. Set the account mapping for document lines and define the receipt evidence needed before a revision moves to Review. That gives the Accounting Reviewer a consistent packet to examine.

The team should also agree what changes require a new revision and how rejected work returns to the preparer. Keep the source of the gross amount visible. If a receipt shows a different amount, correct the lines and gross before resubmission. The review decision should correspond to the version the reviewer actually saw.

Create a document for a petty cash purchase with its owner, organization and partner. Enter separate lines for the purchased items and tax, then attach the receipt. Have the preparer check the line total against the gross and send the document for review. The reviewer should open the same revision, inspect the evidence and make a reasoned decision. Change a line after preparing the case and verify that the team treats the changed revision as new work.

After approval, follow the document to a journal in an open period. Compare its posted amount with the source amount. This rehearsal helps the preparer and reviewer distinguish a complete-looking form from an accountable expense record.

• Document Status Board — Source documents grouped by status, with owner and amount visible.
• Documents Awaiting Review — Review-stage documents with the amount, owner and source identity visible.

Continue with document approval and journal posting.