Glossary
Credit
Definition
A credit is the right-hand side of an entry. For income, liability and equity accounts a credit usually increases the balance. A credit in an asset account usually reduces it, which is the opposite of a debit.
Example. Issuing a sales invoice for €1,000 is a credit of €1,000 to the income account.
Why it matters for your company
Credits and debits are how every entry balances. Once you read a credit as the right-hand side, the ledger and the trial balance make sense.
Where you see it in Sapita
In the credit column of each journal entry, shown in advanced mode.