Using Digits

Effectively managing your transactions is crucial for keeping your financial records accurate and up-to-date. This document will guide you through various processes related to transactions.

How to Use the Transactions Tab

The Transactions tab is your comprehensive hub for viewing and managing all business transactions. Here's what you can do within this tab:

• Overview of Transactions: Access a detailed view of all transactions processed for your business. Quickly see how many transactions exist in each category:
  • Assets
  • Liabilities
  • Equity
  • Revenue
  • Cost of Revenue
  • Operating Expenses
  • Other Income
  • Other Expenses
• Filtering Options: Easily filter transactions by Party or Amount to find specific records. You can also review transactions from previous months for thorough insights.
• Dashboard Details: Gain a complete understanding of your financial activities with visibility into the date, party, source, category, and running balance—all in one streamlined dashboard.
• Additional Features: From this tab, you can perform several key actions:
  • Import Bank Transactions and Journal Entries
  • Add new transactions
  • Edit existing transactions
  • Download transactions as a CSV file
  • Download your complete financial package

These features are designed to enhance your financial management capabilities, allowing you to filter through specific timelines by using the period selector, providing a clear and organized view of your business's financial health. 

How to Add a Transaction

Adding a transaction to your ledger is simple and can be tailored to fit different types of entries. Follow these steps to add a transaction:

1. From your home dashboard, navigate to the Transactions Tab.
2. In the Transactions tab, click New Transaction located in the top right-hand corner.
3. Choose from Journal, Pay In, or Pay Out to specify the type of transaction you are adding.
4. Enter Transaction Details:
   • For each entry type, select the transaction date and add a memo for clarity.
   • For Journal Entries, provide the following details:
     • Category
       Must be selected on every line
       
     • Debit Amount
       This must equal the credit amount.
       
     • Credit Amount 
     • Description (Optional)
       
     • Party (Optional)
     • Reference No. (Optional)
       While this is optional, this is most useful for invoice numbers.
     • You can add additional lines for this entry if needed, but two lines must be entered at a minimum.
   • For Pay In Transactions: 
     • Select the pay-from party and the pay-in account.
     • Fill in the description, amount, and category.
       Category & Amount are required
   • For Pay Out Transactions: 
     • Select the pay-to party and the pay-out account.
     • Fill in the description, amount, and category.
       Category & Amount are required.
       
   • For both Pay In and Pay Out, you have the option to add additional lines for the same transaction.
5. Once all necessary information is filled out for your transaction, click on Save & Close in the top right-hand     corner to finalize and add your transaction. Alternatively, open up the dropdown and click "Save" if you still want to stay on this transaction or "Save and New" if you would like to add another transaction right away.

How to Import Transactions

Importing your bank transactions is a seamless process. Follow these steps to ensure a smooth import:

1. Gather your information from your Banking Institution for the CSV template, here are links to popular banks on how to obtain your information.
   • Bank of America
   • Bench 
   • Chase Bank 
   • Silicon Valley Bank 
   • For banks not listed, please visit your bank's website to obtain their specific CSV instructions.
     
2. From your home dashboard, navigate to the Transactions tab in the left-hand toolbar.
3. In the Transactions tab, click the dropdown arrow next to New Transaction located in the top right-hand corner of the page.
4. From the dropdown menu, choose Import Bank Transactions.
5. In the pop-up window, select the appropriate bank or credit card category.
6. You have the option to either select your file or drag and drop it for upload. Ensure that you use the CSV template provided to upload your transactions correctly. 
7. Click Next to start importing your transactions.

How to Copy or Reverse a Transaction

Copying or reversing transactions can help streamline repetitive tasks and correct errors efficiently. Follow these steps to perform these actions:

1. From your home dashboard, navigate to the Transactions tab using the left toolbar.
2. Find the transaction you wish to copy or reverse using the filter by party, amount options or payment selector. Click on it to open the transaction details.
   You can also search for a transaction by using the keyboard shortcut command+k.
   
3. Copy or Reverse the Transaction: 
   1. To copy the transaction, click on the copy icon. This will create a duplicate entry that you can modify as necessary.
   2. To reverse the transaction, click on the reverse icon. This action will create a new transaction that effectively cancels out the original, maintaining your records' accuracy.

How to Edit a Transaction:

1. From your home dashboard, navigate to the Transactions tab.
2. Use filters to locate your transaction by party or amount.
3. Once you find the desired transaction, click on it to open the edit options.

For detailed guidance on what can and cannot be edited, please refer to the accompanying chart that highlights these specifics. The header of this chart references to the source of the transaction (imported from Connections vs Manually Created, imported from Digits Pay Etc.).

	Connect	CSV Upload	Digits Pay	Manual	QBO
Date	❌	✅	✅	✅	❌
Memo	❌	✅	✅	✅	❌
Amount	❌	✅	✅	✅	❌
Party	✅	✅	✅	✅	❌
Category	✅	✅	✅	✅	❌
Description	❌	✅	✅	✅	❌
Add Line Item	❌	✅	✅	✅	❌
Remove Line Item	❌	✅	✅	✅	❌
Reference No.	✅	✅	✅	✅	❌
Delete	Only CSV & Manual Transactions can be deleted

Bulk Editing

1. From the Transactions Tab, hover over a transaction row and a checkbox will appear.
2. Select one or more transactions to perform bulk edits.
   You can also select all transactions for a given category to apply bulk updates.
3. Once you have your selection, select the changes in the header you'd like to edit. You can edit the following in bulk edits:
   • Category
   • Party
4. Click Apply Edits.

Managing Your Categories

Effectively managing your categories is key to maintaining organized financial records. Follow these steps to add or edit categories within Transactions:

Adding a New Category

1. From your home dashboard, navigate to the Transactions tab.
2. In the Transactions tab, click on the gear icon located in the lookup bar on the left side.
3. Within the Category Manager, click on the Add Category button in the top right corner of the page.
4. Fill in the necessary information for your new category:
   1. Category Name
   2. Parent Category
   3. Category Number (Optional)
   4. Subtype (Optional)
      This is often auto set by the Parent Category. If you are looking for a different subtype, you will need to change the subtype of the Parent Category first.
   5. Description (Optional)
5. Once all details are entered, click Save.

Editing a Category

1. Click on the category you want to edit in the Category Manager, or use the lookup category search feature.
2. On the right side of the manager, hover over the category details. Click the pencil icon next to the category name.
3. Make the necessary changes to the following fields:
   • Category Name
   • Parent Category
   • Category Number (Optional)
   • Subtype (Optional)
     This is often auto set by the Parent Category. If you are looking for a different subtype, you will need to change the subtype of the Parent Category first.
   • Description (Optional)
4. After editing, click Save in the bottom right corner of the category details.

If needed, there is also an option to Deactivate Category within this section.

What Transaction Data Does Digits Automatically Ingest?

With bank connections, Digits ingests essential transaction data to streamline your financial management. The data includes:

• Date: The date of each transaction.
• Amount: The monetary value involved in the transaction.
• Description: A textual description, which may include details such as the party involved, depending on how your bank sets up this information.

Digits automatically assigned "category" and "party" based on ingested transaction data.

If you require additional support or have any questions, please don't hesitate to reach out to us through our contact form. Our team is here to assist you with any concerns or further guidance you may need.

Additional Resources:

• Journal Entries