Transactions Definition In Business And Accounting, Types, Systems

In accounting, business transactions or also known as financial transactions are all activities that can be measured in money and have an impact on the financial position of a company.

In this article, we will discuss in full the definition, types, and systems used to record transactions in business.

Think about what activities you have done in the previous week. Do you buy goods at the supermarket, do you pay bills that are not due?

If you do any of the things just mentioned, then you are part of the financial transaction system.

Definition of Transaction

What is a transaction? A simple definition of a transaction is an agreement between a buyer and a seller to exchange goods, services, or financial assets.

Whereas in the world of accounting, it can be interpreted as any business activity that has a direct impact on the financial status and financial statements of the business.

For example, you run a trading and distribution business . You sell some items to a customer for IDR 5 million in cash.

You can measure these events in monetary terms and have an impact on the financial position of your business so they are called transactions.

Likewise, if you pay an employee’s salary of Rp. 4 million. These events are also transactions because they have a monetary value and have a financial impact on your business.

All transactions that occur will be recorded by the bookkeeper or accountant into a business accounting record or called a Journal.

Transaction Forms

To better understand it, here are examples or forms of transactions that can be found in businesses or companies:

  • Sales in cash or credit to customers.
  • Receive cash payments from invoices that have been due from customers.
  • Purchase fixed assets from suppliers .
  • Recording of depreciation/depreciation of fixed assets from time to time.
  • Purchase inventory from suppliers .
  • Invest in other businesses.
  • Borrow money from creditors.
  • Distribute dividends to investors.
  • Selling assets to third parties.

Transaction Types

Transactions are further divided into several types, namely:

Based on Institutional Relations

The first type we will discuss is the one based on institutional relationships which are divided into internal and external:

1. Internal Transactions

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