[-]
 [+]
Products
 [+]
 [-]
Sales
   
   
   
   
   
   
 [+]
 [+]
 [+]
 [+]
Production
 [+]
Finance
 [+]
 [+]
 [+]
Operations
 [+]
Admin
 [+]
Reports
 [+]
Spot Search
  
 
 
 
[-]
  
  
  
  
  
[-]
  
  
[-]
  
Updated on 3/14/2019
Help by Modules latest
Accounting Sales Transactions
Direct link to topic in this publication:

Accounting Transactions from Sales Module(Sales).


a) Sales Invoice : Saved

When a Sales Invoice is saved: following accounting entry is made- 

A/c Receivable (Debited) 

Cost of Goods Sold Debited xxx

       To Sales Products xxx

       To Stock (Credited)

Accounting entry interpretation

Debit

A/c Receivable : The amount owing from Customer and 

Cost of Goods Sold: Cost ( Purchase value) of the goods moved out form the premises.

Credit

Sales Products: Sales value of goods moved out

Stock: Purchase value of goods moved out, which also interprets the deduction in stock level

(If a tax is charged for the sales, A/c receivable will show an amount inclusive of tax and same amount will be credited as Tax on Sales.)

An excess of Sales Products Price over Stock shows the profit in transaction. If inverse, it shows the loss in transaction.


b) Sales Invoice : Cash received

When cash is received for a Sales Invoice, following accounting entry is made under Receipt Journal.

Payment by Cash Debited xxx

To Payment on Invoice xxx

Accounting entry interpretation

Debit

Payment by Cash : Indicates the mode by which company has received the amount from Customer

Credit

Payment on Invoice: Refers the transaction on which payment has been made by the Customer.


c) Sales Invoice : Partial amount received

When amount is received in partial, the same is shown under history tab of SI transaction. Amount received against Invoice will be shown under Receipt Journal.


d) Sales Invoice : combo entry

Accounting entry for a Sales Invoice having both discount and Tax adjustments.

A/c Receivable Debited xxx

Cost of Goods Sold Debited xxx

Sales Discount Debited xxx

To Sales tax xxx

Sales products xxx

Stock xxx

Accounting entry interpretation

Debit

A/c Receivable : Shows the adjusted amount which is received from the customer


Calculation of A/c Receivable

a) [(Sales price per unit * number of units) – Discount %] gives Sales price after discount.

b) (Sales price after discount – Tax rate) gives net A/c's Receivable.

Cost of Goods Sold: Cost ( Purchase value) of the goods moved out form the premises.

Sales Discount: Indicates the expense incurred by providing discounts. Discount is calculated before charging tax. 

Credit

Sales tax: Indicates the amount collected as tax on sales transaction.


Calculation of tax

Tax rate should be calculated on Sales amount after adjusting discounts if any.

Sales Products: Sales value of goods moved out (Selling price multiplied with number of units)

Stock: Purchase value of goods moved out, which also interprets the deduction in stock level