Pay In/ Pay Out Transactions
Learn how to manually record Pay In and Pay Out transactions in Digits. Add income, expenses, refunds, or reversals directly from your client’s Ledger with control and accuracy.
Create an Add Pay In / Pay Out Transaction
Go to Accounting → Ledger.
Click + Add Transaction in the top-right corner.
Choose Pay In or Pay Out based on the transaction type.
Enter transaction details:
Party
For Pay In, select the pay-from party; for Pay Out, select the pay-to party.
Required
Reference Number
Tracking or reference number for the transaction (e.g., invoice or receipt number).
Optional
Date
Choose the transaction date.
Required
Memo
Internal note for context or reference.
Optional
Category
Choose the correct ledger category.
Required
Description
Short description of the transaction.
Optional
Amount
Enter the amount.
Required
Department
Assign the transaction to a department, if applicable.
Optional
Tip: Add extra lines for multi-split entries by clicking + Add Line at the bottom.
When finished entering your details, you can choose how to save:
Save & Close — Save and return to the Ledger.
Save — Save and stay on the current entry.
Save & New — Save and immediately start another transaction.
Recording Refunds or Reversals
Need to enter a refund, return, or adjustment? You can enter negative amounts in both Pay In and Pay Out transactions.
Common use cases include:
Vendor or customer refunds
Reversing incorrect entries
Recording partial credits or bank fee adjustments
Digits automatically processes negative entries correctly for reporting and reconciliation.
Need to record a journal entry instead?
If your entry affects multiple accounts or adjusting entries, use Journal Entries instead of Pay In/Pay Out. See: Journal Entries in Digits
Frequently Asked Questions
Can I edit or delete a Pay In / Pay Out transaction later?
Yes. Open the transaction in the Ledger, make your changes, and click Save. You can also delete it from the dropdown menu.
What’s the difference between Pay In, Pay Out, Journal, and Transfer?
Pay In: Incoming cash or income transactions.
Pay Out: Outgoing payments or expenses.
Journal: Adjusting or non-cash entries between accounts.
Transfer: Moves money between connected accounts (e.g., checking → savings).
Will Pay In and Pay Out affect reconciliations?
Yes. These transactions are included in reconciliation workflows; ensure the categories and dates are accurate.
Can I add a transaction from a party or category page?
Yes! You can add a new transaction directly from any party page (vendor or customer) or category detail page — no need to navigate back to the Ledger. Just click + Add Transaction from the page you're on.
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