A Miscellaneous Transaction (OD) is an accounting entry that does not form part of the three main accounting journals: purchases, sales or financials. It is an accounting entry required to ensure accurate bookkeeping.

💡 ODs play an essential role in keeping accurate and complete accounts. Their purpose:

Torecord as expenditure or income transactions not arising from a purchase or sales invoice or payment (salary, rent, flat-rate expenses, etc.)
Close the accounts with compulsory entries (VAT, depreciation, etc.)
Repair accounting errors or cancel an entry (internal credit note)
Shifting the tax period of an expense or income

The different types of OD

Here are the different types of miscellaneous transactions in accounting:

1️⃣ Current expenditure DOs

Current expenditure DOs record expenses for which there are no invoices.

👉🏻 Example of a current expense OD:

Fixed expenses
Kilometric allowance
Interest on arrears (e.g. VAT)
Per diem (in a company)
Executive salary (company)
Rent to an executive (company)
Depreciation

2️⃣ Closing OD

Closing ODs are used to adjust the accounts at the end of the period. These are mainly adjustments made by BILLY at the end of the year, except for VAT, which is usually made on a quarterly basis.

👉🏻 Example of a closing OD:

VAT centralisation
Taking into account interest on a loan
Change in inventory
Tax estimate and appropriation of profit (in a company)
Carryover of accounts from previous year's closing balance (in a company)

3️⃣ Accruals and deferrals

Accruals and deferrals adjust the accounting result by deferring an expense or income to a subsequent or previous year. These accruals are posted to the income and expense accounts (classes 6 and 7).

👉🏻 Example of an adjustment OD:

Deferral of an expense or income to the following year
- For example, you pay an insurance bill for one year. Part of the expense is carried forward to the following year (pro rata).
Charging a current year expense or income to the previous year

4️⃣ Correction ODs

The purpose of correction ODs is to cancel or correct certain accounts or entries. When this involves purely making the opposite entry to the one that was made, it is referred to as a reversal.

👉🏻 Example of an adjustment OD: