Source Documents
What Are Source Documents?
A source document is a document containing details about a business transaction.
![sd1](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd1.jpg)
How it Works
Prior to computerized accounting, businesses recorded their transactions in journals.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd2.jpg)
The information for these journals came from source documents.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd3.jpg)
These documents include things like invoices, checks, credit notes etc.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd4.jpg)
Most of them were for regular day-to-day type transactions, requiring routine processing.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd5.jpg)
Some, though, required different processing.
![sd6](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd6.jpg)
Each day, somebody had to sort through the source documents and classify them.
![sd7](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd7.jpg)
Regular accounts staff will be able to process most of them.
![sd8](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd8.jpg)
Others, however, will need to be processed by senior staff or the accountant.
![sd9](https://seeaccountingnow.online/wp-content/uploads/2020/04/sd9.jpg)
© R.J. Hickman 2020