Generally speaking, your documents will represent transactions that fall under either Money In or Money Out.
Category types can also be generally be considered as Money In or Money Out. There are 4 category types in Veryfi:
- Cost Of Goods Sold
Categories that are of either Expense or COGS type are typically used assigned to Money Out transactions, whilst Income & Refund categories are typically assigned to Money In transactions.
There are exceptions to the above.
For example, a refund you received for the purchase of a good or service could rightly be categorized with an Expense or COGS category, but marked as Money In. Likewise, a vendor credit or refund that you offer to a customer could be categorized with an Income category, but marked as as Money Out.
How is this all represented in reports?
On document reports, you will notice separate columns for Total Spent and Total Received. Each category will contain an amount in each of these columns. If you have Money In and Money Out activity on any category for the reported period, regardless of the category's type, the figures in these columns will both be non-zero.
On the Profit and Loss (P&L) report, Money Out transactions are deducted from Money In categories, and Money In transactions are deducted from Money Out categories. For example, in the below screenshot, the Money In category "Sales" had no Money In transactions in the reported period, however it did have $29.48 Money Out (refund to customer) during that time. The result is a negative figure against this Money In category.