At Light, one of the core objects is the ‘Accounting Document’. Accounting documents here simply means any object that creates ledger lines in the immutable ledger table. Accounting documents can be seen on the table “Accounting Documents” under the records subsection on the menu bar. 

The full list of accounting documents is as follows:

• JE - Journal Entries - used for manually entering transactions into the ledger

• AP - vendor invoices - used for processing vendor invoices 

• AR - sales invoices - used for processing sales invoices 

• CT - card transaction - used for processing card transactions 

• BP - bank payment - used for processing bank payments as part of the AR/AP reconciliation flow 

• FX - foreign exchange - created as part of the monthly closing process where FX adjustments are posted

• CN - credit note - when issuing credit against an open AR or AP

• DE - deferred entry - for deferring revenue from a contract or accrual from a purchase order

In Light, each Accounting Document can generate 1 or many ledger transactions. 

As a simple example, if you post a journal entry and later void it, that will consist of two transactions - the original posting and the later voiding that reverses the posting. By having a 1-to-many relationship between Accounting Documents and the underlying ledger lines, we abstract away the complication of adjustments and modification creating several lines, as the number of Accounting Documents is kept constant.