Double-entry accounting basics
Debits, credits, and why a journal must always balance.
Double-entry bookkeeping has been the global standard since the 15th century. The rule is simple: every transaction affects at least two accounts, and the total debits = total credits.
That single discipline is the system's primary defence against errors: if a journal does not balance, the system rejects it — mistakes are caught immediately, not at audit.
The ground rules
Debits on the left, credits on the right.
For every transaction: Σ Debits = Σ Credits.
Whether "debit increases" or "decreases" depends on the account family.
| Family | Normal side | Debit | Credit |
|---|---|---|---|
| Asset | Debit | + up | − down |
| Expense | Debit | + up | − down |
| Liability | Credit | − down | + up |
| Equity | Credit | − down | + up |
| Revenue | Credit | − down | + up |
Quick mnemonic: Assets & Expenses go up on debit; everything else goes up on credit.
Worked examples
Coffee shop cash sale Rp 25,000 (VAT inclusive)
Dr. Cash/Bank 25,000
Cr. Revenue 22,523
Cr. Output VAT 2,477
Total debit 25,000 = total credit (22,523 + 2,477). Balanced ✓.
Raw material purchase Rp 10,000,000 cash
Dr. Raw Material Inventory 10,000,000
Cr. Cash/Bank 10,000,000
Monthly payroll Rp 18,000,000 (PPh 21 withheld Rp 850,000, BPJS Rp 2,000,000)
Dr. Salary Expense 18,000,000
Cr. PPh 21 Payable 850,000
Cr. BPJS Payable 2,000,000
Cr. Cash/Bank 15,150,000
Three credits, one debit — what matters is that the totals match.
Why double-entry matters
- Audit-proof: auditors can trace each amount in the P&L/Balance Sheet back to its source journal.
- Automatic validation: an unbalanced journal is rejected — errors are caught in seconds.
- Foundation of the financial statements: without double-entry, the Balance Sheet and P&L cannot remain mutually consistent.
How esaFiskaly enforces it
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Before a journal is saved, the backend sums debits and credits. If the difference exceeds Rp 0.01 (rounding tolerance), the journal is rejected with an explicit error.
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POS, invoices, payroll, purchases — each module produces its own balanced journal. SME users never have to write debit/credit lines by hand.
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Posted journals cannot be deleted — only reversed by a new journal that flips the debits and credits. History stays intact.