Journals & Entries
Master double-entry mechanics in Caydem — posting journal entries, debits and credits, recurring entries, and voiding.
Everything that happens in your books is recorded as a journal entry. Caydem is built on true double-entry accounting, which means every entry must balance: total debits equal total credits. This guide covers the mechanics of posting, debits and credits, recurring entries, and voiding.
Double-entry mechanics
In double-entry accounting, every transaction touches at least two accounts, and the total recorded on the debit side must equal the total on the credit side. This is what keeps your books in balance and makes every figure traceable.
Caydem enforces this rule at the point of entry: an entry cannot post unless it balances. There is no way to record a one-sided transaction, which is exactly the safeguard professional bookkeeping depends on.
A journal entry in Caydem consists of:
- A date, which determines the fiscal period the entry falls into.
- A description or memo explaining the transaction.
- Two or more lines, each naming an account and a debit or credit amount.
- Optional attachments — source documents that support the entry.
Debits and credits
Whether a debit increases or decreases an account depends on the account’s type. The table below summarizes the normal behavior:
| Account type | Increases with | Decreases with | Normal balance |
|---|---|---|---|
| Asset | Debit | Credit | Debit |
| Expense | Debit | Credit | Debit |
| Liability | Credit | Debit | Credit |
| Equity | Credit | Debit | Credit |
| Revenue | Credit | Debit | Credit |
A worked example — recording payment of a $1,200 monthly insurance bill from cash:
| Account | Debit | Credit |
|---|---|---|
| Insurance Expense | 1,200.00 | |
| Cash | 1,200.00 |
The expense increases with a debit; cash (an asset) decreases with a credit. Debits equal credits, so the entry balances and can post.
Posting a journal entry
To record an entry in the General Ledger:
- Create a new journal entry and set the date. Confirm the date falls in an open period — entries cannot post to a closed or locked period.
- Enter a clear description so the entry is self-explanatory later.
- Add lines, choosing an account and entering a debit or credit on each. Add as many lines as the transaction requires.
- Watch the running totals. Caydem shows the debit total, credit total, and the difference. The entry is ready when the difference is zero.
- Optionally attach supporting documents — an invoice, a receipt, a contract.
- Post the entry.
Once posted, the entry immediately updates your trial balance, balance sheet, and income statement.
Entries can only post to an open period. If the date falls in a closed period, either choose a date in an open period or, with the proper permissions, reopen the period first. See Period Close.
Recurring entries
Many entries repeat on a schedule — monthly depreciation, rent, recurring accruals. Rather than re-keying them, set up a recurring entry. Define the entry once, including its accounts and amounts, and a schedule for how often it should be generated.
Caydem then creates the entry on each occurrence so you do not have to remember it. Recurring entries are ideal for the predictable, periodic postings that make up much of a month-end close.
Voiding an entry
Sometimes an entry needs to be undone. Caydem favors a void over a hard delete, because deleting a posted entry would erase part of the audit trail.
- Voiding reverses the effect of a posted entry while preserving the record that it existed and was reversed. The original and its reversal both remain visible, keeping the history intact.
- Because the audit trail is preserved, you — and any future auditor — can always see what was posted, when, and how it was corrected.
This archive-don’t-delete approach is deliberate. For books that may be audited, an unbroken history is far more valuable than a tidy-looking ledger with gaps.
Correcting mistakes in closed periods
If you discover an error in a period that has already been closed, do not force-edit history. Instead:
- Reopen the period with the appropriate permissions, or post a correcting entry to the current open period if reopening is not appropriate.
- Record the correction as its own balanced entry, with a description that references the original.
- Re-close the period if you reopened it.
This keeps the correction transparent and traceable, which is exactly what your reviewers and auditors will expect.
Next steps
- Make sure your accounts are set up the way you need in Chart of Accounts.
- Establish your monthly rhythm with Period Close.
- Prepare supporting evidence for review with CPA Audit Access.