Business transaction (saimnieciskais darījums)
In Latvian: Saimnieciskais darījums
A business transaction (saimnieciskais darījums) is any legal transaction, and any fact or event, that changes the liabilities of an undertaking or the state of its assets, meaning their composition or value.
The Accounting Law defines it broadly: not only a purchase or a sale but also, for example, receiving a loan or a shortage found in a stocktake, because these change assets or liabilities too.
Every business transaction must be recorded, and each entry must be backed by a source document. The transaction date is the day the change in liabilities or assets actually happened.
Source documents are booked as soon as possible and no later than 20 days after the end of the month in which they were received or issued. Individual merchants and other business operators with turnover up to EUR 300,000 may book quarterly, within 15 days after the quarter ends.
Example
SIA "Ozols" receives goods from a supplier on 3 March 2026 and pays the invoice on 20 March. These are two transactions: the delivery increases stock and the amount owed to the supplier, and the payment reduces cash and that debt. Documents received in March are booked by 20 April.
Legal basis
- Accounting Law, Section 1, Clause 7 likumi.lv
- Accounting Law, Section 13 likumi.lv
- Accounting Law, Section 6 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.