Zeyto Academy · Foundation · Module 1
Accounting foundations on Zeyto
Set up your company and year, learn the chart of accounts, double entry, journals, ledgers and the trial balance, and see how every Zeyto document posts.
You will be able to
- Set up a company profile and fiscal years so documents can be posted
- Explain the five account roots and the difference between a ledger and a group
- Write balanced debit and credit entries for simple business transactions with 5% VAT
- Post, amend and cancel a journal voucher correctly
- Read an account statement, a general ledger and a trial balance
- Say what each Zeyto document does to stock, the ledger and VAT, and check it in the Posting Trail
- Enter opening balances and understand the year-end close
Set up your company and financial year
- Company Profile tells Zeyto who you are; Base Currency is the currency every document is posted in, so set it first.
- A document dated outside every open fiscal year is refused. Add next year before it starts.
- Status Closed only locks a year. The Year-End Close screen is what posts closing entries.
The chart of accounts and account groups
- Five roots: Asset, Liability and Equity appear on the Balance Sheet; Income and Expense on the Profit & Loss.
- You post to ledgers, never to groups. Groups exist so reports can add ledgers up.
- Documents find ledgers by Account Type. Accounts are made Inactive, never deleted.
Double entry in plain language
- Every transaction has equal debits and credits; a debit is simply the left side.
- Assets and expenses increase with debits; liabilities, equity and income increase with credits.
- VAT is its own line: VAT Output (credit) on sales, VAT Input (debit) on purchases.
Journal vouchers
- Debits must equal credits and a Narration is required before a journal can be posted.
- Lines on Receivable or Payable ledgers need a Party.
- Posted journals are corrected with Amend (/A1) or Cancel Voucher; both add reversing entries instead of erasing.
Ledgers and account statements
- A ledger is the full history of one account, with a running balance.
- A minus Running Balance in the General Ledger is a credit balance.
- Amend and Cancel leave the original lines and add Reversal lines, so the ledger tells the whole story.
Trial balance basics
- The trial balance lists every account's balance; Closing Dr must equal Closing Cr.
- A balanced trial balance proves only that debits equal credits, not that every entry is correct.
- Use it each month, then drill into ledgers for anything odd.
How every Zeyto document posts to the ledger
- Quotations, orders and proformas post nothing; delivery notes move stock and cost; invoices record the sale, VAT and money.
- A sale posts a revenue pair and a cost pair, and VAT is a liability, not profit.
- The Posting Trail shows exactly what a document posted to the ledger, stock and VAT.
Opening balances and closing the year
- Opening balances are entered once; any difference is parked on the Opening Balance ledger until you find the missing entry.
- Year-End Close moves the year's profit into Retained Earnings so income and expenses start at zero.
- A close needs the earlier year closed first and can be reversed with a written reason.
Set up your company and financial year: key table
| Field | What it means |
|---|---|
| Name | Required and different for every year, such as FY2027. A numbering series that resets each year puts this name inside the document number. |
| Starts / Ends | The first and last day. Ends must be after Starts. |
| Status | Open years accept postings. Closed years refuse new postings, amendments and cancellations dated inside them. |
The chart of accounts and account groups: key table
| Root | What it holds | Statement |
|---|---|---|
| Asset | What the business owns or is owed: cash, bank, stock, customer balances | Balance Sheet |
| Liability | What the business owes: suppliers, VAT payable, advances received | Balance Sheet |
| Equity | The owners' stake: capital, drawings, retained earnings | Balance Sheet |
| Income | What the business earns: sales, other income | Profit & Loss |
| Expense | What the business spends: cost of goods sold, rent, salaries | Profit & Loss |
Double entry in plain language: key table
| Root | Increases with | Normal balance |
|---|---|---|
| Asset | Debit | Debit |
| Expense | Debit | Debit |
| Liability | Credit | Credit |
| Equity | Credit | Credit |
| Income | Credit | Credit |
Ledgers and account statements: key table
| Question | Report |
|---|---|
| What moved in this one account, and what is its balance after each entry? | Account statement |
| Show me all the entries for every account (or a chosen one) with cost, job and project filters | General Ledger |
| What does this customer owe and what have they paid? | Party Statement or the customer's Statement button (module 2) |
| Which document made this entry, and what else did it post? | Posting Trail (lesson 7) |
How every Zeyto document posts to the ledger: key table
| Document | Stock | Ledger | VAT |
|---|---|---|---|
| Quotation, Sales Order, Proforma, Purchase Order | No | No | No |
| Delivery Note | Goods out | Dr Cost of Goods Sold, Cr Inventory (no sale) | No |
| Sales Invoice | Goods out (unless a delivery note already moved them) | Dr Receivable or cash, Cr Sales, Cr VAT Output; plus the cost entry | Output VAT |
| Sales Return | Restocked goods back in | Reverses the sale and VAT, credits the customer | Output VAT reduced |
| Goods Receipt (GRN) | Goods in | No (follows the purchase invoice) | No |
| Purchase Invoice | Goods in (unless a GRN did) | Dr Inventory or Expense, Dr VAT Input, Cr Payable | Input VAT |
| Receipt / Payment voucher | No | Cash or bank against the customer or supplier account | No |
| Journal Voucher | No | Exactly the lines you enter | No |