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.

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Create an Add Pay In / Pay Out Transaction

1. Go to Accounting → Ledger.

2. Click New Transaction in the top-right corner.

3. Choose Pay In or Pay Out based on the transaction type.

4. Enter transaction details:

Field	Description	Required/Optional
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.

1. 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.

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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.

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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

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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, so ensure categories and dates are accurate.

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Need help? Reach out to [email protected]