▶︎ Does Scribe accommodate ledger functionality?

Does Scribe accommodate ledger functionality?

Although it doesn't have specific ledgers, Scribe does incorporate functionality that is akin to a ledger system and operates on a Receipts and Payments (R&P) basis for most of the financial year, transitioning to an Income and Expenditure basis at the financial year end.

While Scribe may not have ledgers in the traditional sense, it simplifies the process of logging transactions, making it more user-friendly.

Additionally, Scribe facilitates the generation of purchase orders and sales invoices, and allows you to produce customised reports to display outstanding amounts for specific suppliers or customers.

Throughout the financial year, transactions are entered using the R&P method, which means they are recorded on the date they were actually paid or received. At the financial year end, those handling income and expenditure identify any necessary adjustments, such as outstanding creditors or debtors. These adjustments are manually input into Scribe, except for the VAT adjustment, which is calculated automatically. Once these figures are entered, the annual return updates to reflect the Income and Expenditure accounts. In the next financial year, Scribe automatically reverses these adjustments for the subsequent year-end calculations.

As Scribe operates mainly on an R&P basis, the actual transactions relating to adjustments must be entered when the payment takes place. For example, if creditor adjustment entries were made in Scribe for the 2022/23 financial year, these must also be recorded as payment transactions in the 2023/24 financial year, on the actual date of payment.