Glossary

Debit

Definition

A debit is the left-hand side of an entry. Whether a debit increases or decreases an account depends on the type of account. In a bank or asset account, a debit usually means money has come in.

Example. Receiving €200 in cash for a sale is a debit of €200 to the cash account.

Why it matters for your company

Most expenses and asset purchases are debits. Knowing the side tells you why a bank payment reduces your bank account while a purchase increases an expense.

Where you see it in Sapita

In the debit column of each journal entry, shown in advanced mode.

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