A transaction is a business event that has a monetary impact on an entity's financial statements and is recorded as an entry in its accounting records. Examples of transactions are as follows: Paying a supplier for services rendered or goods delivered. Paying a seller with cash and a note to obtain ownership of a property formerly owned by the seller. Paying an employee for hours worked. Receiving payment from a customer in exchange for goods or services delivered.

A high-volume transaction, such as billing to a customer, may be recorded in a specialized journal, which is then summarized and posted to the general ledger. Alternatively, lower-volume transactions are posted directly to the general ledger.