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Debits and Credits
Accounting Subledger follows specific definitions to determine debit and credit amount types.
| Available in: Lightning Experience |
| Available in: Enterprise, Performance, Unlimited, and Developer Editions with Accounting Subledger |
In accounting, the type of transaction determines how the amount impacts the debit and credit columns. Not all debit transactions are subtractions and not all credit transactions are additions.
How do you know which transactions subtract and which ones add? In accounting terms, debits increase balances for revenue and asset accounts (such as accounts receivable) and decrease balances for expense and liability accounts (such as accounts payable). And credits increase balances for expense and liability accounts and decrease balances for revenue and asset accounts.
| Items that Increase in the Debit Column and Decrease in the Credit Column | Items that Increase in the Credit Column and Decrease in the Debit Column |
|---|---|
| Expected revenue (such as pledges) | Fund accounts (such as general fund, building fund) |
| Payment methods (such as cash, credit card) | — |
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