Document Types define the classification of document, their numbering or sequencing and behavior.  A document type represents a transaction that may have an accounting consequence (e.g. an invoice). Document type definitions can assist in conforming to company or jurisdictional accounting procedures and requirements. Document types can also be used to differentiate similar transactions.  For example, a different document type and document sequencing may be defined for B2B invoices vs. B2C invoices.  Using this convention you achieve an easy visual indication of the different transactions.

When creating or updating document types keep in mind the following settings:

The Information section defines default and processing settings.  Use the Receivables check box to indicate transactions that reference this document type are classified as receivables (e.g. Accounts Payable Invoice, Sales Order, Quotation).  This will also control the taxes that can be selected when this document type is used. Use the Reversing check box to indicate transactions that are correcting (reversing transactions).  These types may include Credit Memos,  Customer Returns, etc.)

Use the Default check box  to designate the document type to be used if no document type is entered.  If more than one document type is selected as a default, the first one found will be used.  Enter a Doc No Increment to indicate how the next document number should be derived.  Generally this is 1.  Enter a Current Doc No to indicate the starting document number.  After the document type is used, this field will be maintained by the application.

Enter the Doc No Format to be used for this document type.  Alphanumeric prefix and suffix is allowed.  The document number must be enclosed in {}.  For example a Doc No Format of AP- {0000} - GOV would result in a document number of AP - 1234 - GOV. This is an example of how document types can be used to classify different transactions (e.g. Government vs Consumer invoices).

Use the Gapless Numbering check box to indicate that document number should only be incremented if the document is saved.  This ensures that there are no gaps in the numbering or sequencing of documents.  This is required in some jurisdictions. The Gapless Doc No  serves the same purpose as the Current Doc No.  It is used only if gapless numbering is selected. The Gapless Format is optional.  If it is not defined, the doc no format is used.