What is Source Documents?
Source documents are the original records that support each transaction recorded in the accounting books — invoices, receipts, contracts, bank statements, payroll slips, customs declarations. They are the audit trail that proves the entries are real and complete.
How It Works
- Capture each transaction’s source document in a structured filing system, paper or digital.
- Reference the document on the journal entry through a unique number or hyperlink.
- Verify completeness of mandatory fields before posting.
- Store the documents for the statutory retention period.
- Make the documents available to internal and external auditors on request.
Saudi Context
ZATCA requires Saudi taxpayers to retain source documents for at least six years (and longer for fixed assets and certain real estate transactions). Phase-2 e-invoicing under FATOORA requires that tax invoices be stored as machine-readable XML linked to ZATCA.
Example
A SAR 50,000 supplier invoice, the delivery note, the goods receipt, and the bank transfer slip are all source documents supporting a single inventory purchase entry. Each is filed and referenced in the journal entry note.