Unified Transaction Ledger
How the AI-Native ERP processes all financial transactions through a single unified system
Overview#
The AI-Native ERP uses a Universal Transaction Ledger where all financial transactions flow through a single unified system. Whether you are posting vendor bills, customer invoices, bank transfers, journal entries, or payroll, every transaction follows the same pipeline for validation, GL posting, tax handling, and audit trails.
Key Benefits:
- Single source of truth for all financial transactions
- Consistent GL posting patterns across every transaction type
- Unified multi-currency handling with automatic conversion
- Automatic tax calculation and posting
- Dimension tracking at both header and line level
- Item-based GL account defaults (expense and revenue accounts auto-populated)
- Per-transaction-type field configuration
- AI-powered transaction classification
How Transactions Flow#
Every transaction follows a consistent lifecycle:
- Submission -- You describe a transaction to Claude or submit it through the dashboard
- Validation -- The system checks required fields, resolves vendors/customers/accounts, and validates business rules
- GL Posting -- Debit and credit entries are created automatically based on the transaction type
- Tax Calculation -- Tax amounts are computed and posted to the appropriate tax accounts
- Dimension Tracking -- Cost centers, departments, projects, and other dimensions are stored at both header and line level
Transaction Operations#
| Operation | What It Does |
|---|---|
| Post | Creates a new transaction with full GL posting |
| Update | Edits a posted transaction (header fields or full GL line replacement) |
| Delete | Permanently removes a transaction with full audit trail |
| Reverse | Creates an offsetting transaction with opposite GL lines |
Supported Transaction Types#
Accounts Payable (AP)#
| Type | Description | When to Use |
|---|---|---|
| AP Invoice | Vendor bill or purchase invoice | Recording bills from vendors for goods or services |
| AP Credit Memo | Vendor credit note | Vendor returns, price adjustments, credits received |
| AP Debit Memo | Vendor debit memo | Additional charges from vendor |
| AP Payment | Vendor payment | Paying vendor bills |
Accounts Receivable (AR)#
| Type | Description | When to Use |
|---|---|---|
| AR Invoice | Customer invoice | Billing customers for goods or services |
| AR Credit Memo | Customer credit note | Customer refunds, return allowances |
| AR Debit Memo | Customer debit memo | Additional charges to customer |
| AR Payment | Customer payment receipt | Recording payments received from customers |
| Recurring Invoice | Recurring customer billing | Automated periodic customer invoicing |
Banking#
| Type | Description | When to Use |
|---|---|---|
| Bank Deposit | Bank deposit | Recording deposits to bank account |
| Bank Withdrawal | Bank withdrawal | Recording withdrawals from bank account |
| Bank Transfer | Inter-bank transfer | Moving funds between bank accounts |
| Bank Fee | Bank charges | Recording bank service fees |
| Bank Interest | Interest earned | Recording interest income |
Stripe Payment Processing#
| Type | Description | When to Use |
|---|---|---|
| Stripe Charge | Payment received | Customer card payment via Stripe |
| Stripe Refund | Refund issued | Refund processed through Stripe |
| Stripe Payout | Payout to bank | Stripe settlement to bank account |
| Stripe Fee | Processing fee | Stripe transaction fees |
Journal and General Ledger#
| Type | Description | When to Use |
|---|---|---|
| Journal Entry | Manual GL entry | Adjustments, accruals, reclassifications, corrections |
| Opening Entry | Opening balance entry | Setting up balances for new periods or entities |
| Closing Entry | Period closing entry | Year-end income summary close |
| Reclassification | Account reclassification | Moving balances between GL accounts |
Tax#
| Type | Description | When to Use |
|---|---|---|
| Tax Payment | Tax remittance | Paying VAT/sales tax to authorities |
| Tax Adjustment | Provision adjustment | Correcting tax provisions or liabilities |
Allocations and Intercompany#
| Type | Description | When to Use |
|---|---|---|
| Cost Allocation | Cost distribution | Allocating shared costs across departments or entities |
| Revenue Allocation | Revenue distribution | Allocating shared revenue |
| Intercompany Charge | Intercompany transaction | Charges between legal entities in the same organization |
Foreign Exchange#
| Type | Description | When to Use |
|---|---|---|
| FX Gain | Realized gain | Currency fluctuation gains |
| FX Loss | Realized loss | Currency fluctuation losses |
Loans and Equity#
| Type | Description | When to Use |
|---|---|---|
| Loan Disbursement | Loan given | Recording a loan to a borrower |
| Loan Repayment | Loan received back | Recording loan principal received |
| Owner Distribution | Dividends or distributions | Profit/capital distribution to owners |
| Capital Contribution | Capital injection | Cash or asset contribution by shareholders |
Payroll and Expenses#
| Type | Description | When to Use |
|---|---|---|
| Payroll | Payroll posting | Salary, taxes, and deductions |
| Expense Report | Employee expenses | Employee reimbursements |
| Reimbursement Payout | Reimbursement payment | Bank payout for employee reimbursement |
System-Generated Types#
Some transaction types are created automatically by the system and cannot be posted manually:
| Type | Generated By | When |
|---|---|---|
| Depreciation | Fixed asset depreciation run | Monthly |
| Closing Entry | Period close process | Month-end |
| Opening Entry | Year open process | Year start |
| FX Gain/Loss | Foreign exchange revaluation | Month-end |
| Recurring Invoice | Billing schedule runner | Per schedule |
GL Posting Patterns#
Each transaction type follows a specific debit/credit pattern:
| Transaction Type | Debit | Credit |
|---|---|---|
| AP Invoice | Expense account | Accounts Payable |
| AP Payment | Accounts Payable | Bank account |
| AR Invoice | Accounts Receivable | Revenue account |
| AR Payment | Bank account | Accounts Receivable |
| Bank Transfer | Destination bank | Source bank |
| Bank Fee | Expense account | Bank account |
| Journal Entry | Custom | Custom (must balance) |
| Expense Report | Expense accounts per line | Employee Payable |
| Payroll | Salary/tax accounts | Net Pay/Tax Payable |
Item-Based Account Resolution#
Transaction lines can reference either an item or a GL account number directly. When an item is used, the system automatically resolves the correct GL account:
- For AP transactions: The item's default expense account is used
- For AR transactions: The item's default revenue account is used
- Direct account: You can always specify a GL account number directly on any line
This means you can mix items and direct accounts on the same transaction -- items for catalog products and services, direct accounts for one-off charges.
Dimensions#
Dimensions provide multi-axis tracking for reporting and analysis. They can be applied at two levels:
- Header level -- Applies to the entire transaction (e.g., project, department)
- Line level -- Applies to individual line items, overriding header dimensions
Common dimension types include departments, cost centers, projects, locations, and product lines. Each organization can configure which dimensions are required for specific transaction types.
Party Tracking#
All transaction types support optional party fields to track the associated vendor, customer, employee, or other party. This is especially useful for journal entries and bank transactions where the party relationship provides context for reporting and reconciliation.
Updating Posted Transactions#
Posted transactions can be updated without needing to reverse and re-post:
| Update Type | What Changes | GL Impact |
|---|---|---|
| Header-only | Description, reference number, due date | No GL changes |
| Line replacement | All GL lines deleted and replaced | Full GL rewrite |
| Both | Header fields and line replacement | Full GL rewrite |
The system validates that the fiscal period is open, checks for restrictions on partially-paid invoices, and automatically unmatches bank statement lines if amounts change.
Transaction Reversal#
When you need to void a transaction while preserving the audit trail, the reversal operation creates a new transaction with opposite GL lines. The original and reversing transactions are linked together, and the original is marked as "reversed."
Multi-Currency Support#
Every transaction supports multi-currency handling:
- Document currency -- The currency of the original transaction
- Functional currency -- Converted to the entity's base currency
- Reporting currency -- Converted to the organization's reporting currency
- Exchange rates -- Applied automatically based on the transaction date
Foreign exchange gains and losses from rate differences are posted automatically during month-end revaluation.
Key Capabilities#
- 46 transaction types covering AP, AR, banking, payroll, Stripe, intercompany, and more
- Automatic GL posting with type-specific debit/credit patterns
- Multi-currency with automatic conversion and FX gain/loss handling
- Dimension tracking at header and line level for granular reporting
- Tax automation with configurable tax codes per line
- Audit trail for every transaction lifecycle event
- Configurable field requirements per transaction type through the admin dashboard
- Item defaults that auto-populate GL accounts from your item catalog
Subscribe to new posts
Get notified when we publish new insights on AI-native finance.