Accounting Behind Saasu

When Saasu creates transactions, there are often lots of postings to the ledger that occur automatically behind the scenes. This help section explains the process for some of these.

Opening Balances

Adding Stock to Saasu

When you add stock value and quantity into the Inventory Opening Balances screen Saasu doesn’t load value into the balance sheet account as this is done when you add an opening balance for all stock value into the Opening Balances screen. Essentially these two things occur:

1. In the Account Opening Balance screen:

AccountDebitCreditTax Code
Asset: Stock100.00  
Equity: Historical Balance 100.00 

2. In the Inventory Opening Balances screen:

AccountDebitCreditTax Code
Asset: Stock 100.00 
Asset: Stock100.00  

Invoices (Sales) and Expenses (Purchases)

Sales Orders

Saasu doesn’t post any financial entries to the ledger on orders where no payment is received. Saasu posts financial entries to the ledger on Sales Orders (goods/services haven’t been supplied) where payment has been received but the transaction hasn’t moved to Sales Invoice stage (goods/services have been supplied). We create the following journal behind the scenes:

AccountDebitCreditTax Code
Liability: Deposits Received 100.00 
Asset: Bank Account100.00  

When you convert a Sales Order to a Sales Invoice we move the money from the Liability: Deposit Received account to the Income account. We call this as a Sales Deposit Transfer (SDT), which is a transaction that we do automatically behind the scenes.

AccountDebitCreditTax Code
Liability: Deposits Received100.00  
Income: General Sales 100.00 

Purchase Orders

Saasu doesn’t post any financial entries to the ledger on orders where no payment is received. Saasu posts financial entries to the ledger on Purchase Orders (goods/services haven’t been received) where payment has been made but the transaction hasn’t been move to Purchase Invoice stage (goods/services have been received). Saasu creates the following journal behind the scenes:

AccountDebitCreditTax Code
Asset: Deposits Paid100.00  
Asset: Bank Account 100.00 

When you convert a Purchase Order to a Purchase Invoice we move the money from the Asset: Deposits Paid account to the Cost of Sales or Expense account. We call this as a Purchase Deposit Transfer (PDT). It’s a transaction that we do automatically behind the scenes.

AccountDebitCreditTax Code
Asset: Deposits Paid 100.00 
Cost of Sales: Goods100.00  

Consumption/Sales Tax

When you assign a GST, VAT or Sales tax code to an item in Saasu, a journal occurs automatically behind the scenes to post amounts to tax payable and tax receivable accounts.

NOTE: Saasu does not do this for income tax This is for consumption and sales tax only.

Example: 15% GST on a New Zealand domestic sales transaction.

Asset: Accounts Receivable100.00 
Income: General Sales 90.00
Liability: Tax collected on Sales 10.00


When you apply a Payment (PP) to a Purchase Order then Saasu adds the following accounting entries:
DEBIT: Asset: Bank
CREDIT: Asset: Deposit Paid

When you convert the Purchase Order (PO) to a Purchase Invoice (P) then Saasu moves the funds from Deposits Paid into an Expense or COGS account with these entries below. This is a PDT (Purchase Deposit Transfer) and is dated the day the transaction is converted from Purchase Order to Purchase Invoice.
DEBIT: Asset: Deposit Paid
CREDIT: Expense: XYZ

Current Earnings

Saasu posts your earnings from your P&L to the inbuilt account called Equity: Current Earnings automatically. It is the balancing item for the Balance sheet and is a “calculated inbuilt account” rather than a ” posting account”. Without this balancing account your P&L result would never impact the equity value of a business in the balance sheet.


A person earning $1,000 per week from which some tax is removed that is payable to the Australian Taxation Office (PAYG Withholdings). This is done via a Business Activity Statement. 9.5% SGC Super is also calculated that becomes payable to the employee’s superannuation fund. We have used a fairly commonly used ATO tax calculation called Scale 7: With Tax Free Threshold and No Leave Loading. Saasu creates the following entries when you enter this payroll transaction:

Employment Expense

AccountDebitCreditTax Code
Asset: Business Bank Account 803.00 
Expense: Employee Base Pay1000.00 W1
Expense: Employee PAYG 197.00W1, W2

PAYG Payable

AccountDebitCreditTax Code
Expense: Employee PAYG197.00 W1
Liability: Employee PAYG Payable 197.00 

Super Payable

AccountDebitCreditTax Code
Expense: Employee SGC Super95.00  
Liability: Employee SGC Super Payable 95.00 

How it Looks in Reports

Profit and Loss

Expense: Employee Base Pay1,000.00
Expense: Employee SGC Super95.00

Balance Sheet

Liability: Employee PAYG Payable197.00
Liability: Employee SGC Super Payable95.00

Business Activity Statement

Tax Code 


Ecommerce integration handling

Transactions in Saasu are associated with a billing and shipping contact. In ecommerce systems orders and invoices may have billing and shipping as well. Email is the common mandatory field along with name and address. Company isn’t always compulsory because it may simply be retail or sole traders buying.

To handle billing/shipping a Saasu Contact record is linked it to the e-commecre systems sales order or invoice.

To get/create/update the contacts Saasu does the following:


We lookup the email in Saasu.

  • If found, we take the contact and if address/name in order billing is different then we update it in Saasu with information from the ecommerce system.
  • If not found then we create new contact in Saasu.
  • If there’s a company set in the order contact, but it doesn’t exist in Saasu (identify by company name), then we create a new company and link it to the contact.


  • If shipping First and Last Names are empty then we ignore shipping.
  • If there’s a shipping contact in the ecommerce order then we check if First and Last Names match the billing ontact.
    • If yes, then we take the billing contact in Saasu and update it’s shipping details with the ones from the ecommerce order.
    • If not then try to find it in Saasu contacts by First and Last Name from the ecommerce orders shipping contact.
      • If then found and the address/company is different to what is in ecommerce order shipping contact is then we update Saasu’s contact.
      • Otherwise we just take the Saasu contact.
  • If not found by First and Last Names then we create a new shipping contact.


Why don’t I see any tax in my expense accounts?

Saasu’s Australian Payroll module treats PAYG tax as something withheld as a Liability rather than being an Expense. Pre-tax pay is booked as an Expense through the Base Pay Hourly/Salary component or another component where you have other types of wages and salary components.