Does an invoice always create a journal entry?

An invoice in SAP Business One typically creates a journal entry as part of its standard processing within the system. When an invoice is generated, the system records the financial impact of the transaction by creating a corresponding journal entry automatically. This journal entry reflects the accounts affected by the revenue (or expense) and ensures that the accounting records are updated in real-time, maintaining accurate financial statements.

The system operates on the principle of double-entry accounting, where each transaction impacts at least two accounts – for example, debiting the accounts receivable for the amount owed while crediting revenue. As a result, every invoice generated, regardless of its value or approval status, leads to a journal entry being made.

The other choices imply conditions or exceptions under which a journal entry would be created, which does not align with the fundamental operations of the software. Each invoice naturally triggers a journal entry, ensuring consistency in financial reporting and systemic integrity in transactions.