Implicit and Explicit Postings

Use the Transaction Center to post transaction files to your database. When you post transaction files, two types of posting activities are processed: explicit postings and implicit postings. Both posting types affect your general ledger accounts.

Generally, DPS posts one side of a general ledger entry explicitly and the other implicitly. An exception is journal entries, which require you to explicitly specify both the debit and credit entries.

Explicit Postings

When you create a transaction file and enter a transaction into it, you supply the general ledger account that you want to debit or credit for the transaction amount. For example, when you enter an invoice, you identify the revenue account that should be credited for the invoiced amount when you post the invoice transaction file. When you post the transaction file, DPS debits or credits the accounts specified for each transaction in the transaction file.

Implicit Postings

When you set up DPS, you specify the general ledger accounts that you want to debit or credit when you post different types of transactions. When you post transaction files, DPS debits or credits the appropriate accounts automatically, based on the type of transaction you are posting.

For example, you establish at least one automatic posting account for Accounts Receivable. When you post an invoice, DPS explicitly credits the revenue account that you specified in the transaction file and implicitly debits the Accounts Receivable automatic posting account.