January 25, 2026 - BY Admin
How to record invoices in the accounting journal?
HOW TO RECORD INVOICES IN THE JOURNAL?
All companies that issue invoices and are subject to VAT must keep a sales journal recording each transaction in chronological order, indicating the amount and the invoice reference.
Special case: retailers who only make cash sales record their sales directly in the cash journal.
Supplier invoices must be recorded in the journal on the transaction date, i.e. the payment date. Note that the recording date depends on the payment method:
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Cheque: date of issue
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Bank transfer: date of the transfer order
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Card payment: date of the payment order
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PayPal: debit date of the payment
HOW TO RECORD A SALES INVOICE?
Start by identifying three amounts:
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Net amount (excluding tax / HT)
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VAT charged (output VAT)
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Gross amount (including tax / TTC – amount due by the customer)
Then enter the debit and/or credit entries in your accounting software:
| ACCOUNT | ENTRY / DATE | DEBIT | CREDIT |
|---|---|---|---|
| Account 411 (Customers) | Customer invoice no. XXX | 1,800.00 € | |
| Account 707 (Sale of goods) | Customer invoice no. XXX | 2,000.00 € | |
| Account 445 (VAT collected) | Customer invoice no. XXX | 200.00 € |
Depending on the nature of the sale, the revenue account credited will differ:
| ACCOUNT | NATURE OF ACTIVITY |
|---|---|
| 701 | Sale of finished products |
| 702 | Sale of intermediate products |
| 703 | Sale of residual products |
| 704 | Works |
| 705 | Studies |
| 706 | Services |
| 707 | Sale of goods |
| 708 | Ancillary activities revenue |
HOW TO RECORD A PURCHASE INVOICE?
As with sales invoices, first separate the three amounts:
-
Net amount (HT)
-
VAT amount
-
Gross amount (TTC)
Then record the accounting entries:
| ACCOUNT | ENTRY / DATE | DEBIT | CREDIT |
|---|---|---|---|
| Account 401 (Suppliers) | Supplier invoice no. XXX | 1,800.00 € | |
| Account 607 (Purchases of goods) | Supplier invoice no. XXX | 2,000.00 € | |
| Account 44561 (Deductible VAT) | Supplier invoice no. XXX | 200.00 € |
Depending on the nature of the purchase, the account to debit will differ:
| ACCOUNT | NATURE OF PURCHASE |
|---|---|
| 601 | Purchases of raw materials and supplies |
| 602 | Stocked purchases |
| 604 | Services |
| 605 | Purchases of equipment, materials, and works |
| 606 | Non-stocked purchases |
| 607 | Purchases of goods |
| 608 | Incidental costs (shipping, customs duties, etc.) |
| 609 | Discounts, rebates, and refunds on purchases |
HOW TO RECORD A CREDIT NOTE?
To record a credit note in accounting:
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Debit account 401 “Suppliers”
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Credit account 44566 “Deductible VAT”
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Credit account 609 “Discounts, rebates, and refunds on purchases”
Tip: A credit note is recorded by reversing the entry made when the original invoice was recorded.
HOW TO RECORD A CREDIT PURCHASE IN ACCOUNTING?
A purchase made on credit is recorded as follows:
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Credit account 164 “Loans from financial institutions”
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Debit account 512 “Bank”
A sale made on credit creates a customer receivable and is recorded as:
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Debit account 411 “Customers”
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Debit the cash account (512 “Bank” or 530 “Cash”)