![]() Unearned Revenue is a special holding account that is used only for cash basis products. Used by Orders service to debit A/R when the product is sold. Used by Payments service to credit out A/R when the product payment is received. In the event that an account is specified at the product, sales tax rate, or shipping type level, the Orders and Payments services use that account in place of the default account. The default A/R account is used for any product, tax, or shipping charge that does not specify an A/R account. While not typically applicable to a deferred income product, if configured to Calculate COGS, the COGS account is debited by the Order service when a product is sold based on the costing method chosen for the product.Įach system must have one default Accounts Receivable (A/R) account. The COGS account is debited by the Order service when a product is sold based on the costing method chosen for the product. The Cost of Goods Sold (COGS) account is used to track all costing information for product sales. While not typically applicable to a deferred income product, if the Calculate COGS option is selected for the product being sold, the order entry system generates a debit to the COGS account and a credit to the inventory account based on the costing method selected. ![]() If the Calculate COGS option is selected for the product being sold, the order entry system generates a debit to the COGS account and a credit to the inventory account based on the costing method selected. The inventory accounts allows an organization to specify different inventory accounts for each product. The Inventory account is the Asset account used to track asset value of all inventory for this product. The Scheduled Transaction module generates a debit entry to the Deferred Account each time revenue is recognized. The Order module generates a credit entry to the Deferred Account upon placement of the order. This GL account is used to book the liability incurred upon order for a deferred account. In contrast to revenue recognition based on accrual or cash basis, deferred revenue accounting requires the revenue to be recognized during the term of commitment for the sale. However, if the Income Statement in the accounting system needs to reflect sales discounts, this account must be set up.ĭeferred Income is a special GL account set up for products where revenue must be recognized over a period of time. Aptify always maintains the discounting information, so reports are available. This option should only be used if the financial reporting requirements include a distinction between Gross and Net Revenues. ![]() The Discounts account is an optional account that, if defined, is used to record a debit entry for the discount portion of a line item in the order. If applicable, used by scheduled transaction to create reversing entries for existing revenue recognition entries. This account is used for the debit entry for any product line item that has a negative quantity and is marked as Not Returned to Stock. The Returns account is an optional account that, if defined, is used for debit entries when product line items are returned as damaged goods. Used by scheduled transaction to create reversing entries for existing revenue recognition entries. This account is used for the debit entry for any product line item that has a negative quantity. The Returns account is an optional account that, if defined, is used for debit entries when product line items are returned. Used by scheduled transactions to generate fractional credit entries to Sales over time. The Sales account is used by the Orders, Payments, and Scheduled Transactions services, depending on the accounting basis used for revenue recognition.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |