General Ledger Posting Concept |
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Accounts Payable Postings
Transaction Type (G/L Source): Accounts Payable - A/P Invoice Entry Example: You receive a vendor's invoice totaling $514.00 with a discount of 2%. $500 of the invoice is merchandise; $14 is freight.
General Ledger Posting:
Transaction Type (G/L Source): Cash Disbursement - Issuing a Check Example: You issue a check to pay the vendor invoice that was just entered. The invoice total is $514.00 with a discount of 2%. $500 of the invoice is merchandise; $14 is freight. The 2% discount is based on the merchandise total only.
General Ledger Posting:
Transaction Type (G/L Source): Accounts Payable - On Account Transaction On Account transactions are processed and posted in 3 steps: first you need to enter the original invoice as an On Account Invoice, then a check needs to be issued, and finally the system will automatically created a negative A/P Invoice for the amount.
Example: A $1,000 payment must be made to a vendor for a future merchandise invoice.
General Ledger Posting: When the On Account Invoice is entered:
When the $1,000 check is issued:
When the system automatically creates the negative A/P Invoice:
Accounts Receivable Postings
Transaction Type (G/L Source): Cash Receipts - Accepting a Customer Payment Example: You receive a customer check for $2,300; the check pays for 3 invoices totalling $2,470. There is a $70 price adjustment on one invoice, and a $100 prompt payment discount.
General Ledger Posting:
Transaction Type (G/L Source): Cash Receipts - Posting a Miscellaneous Cash Receipt Example: You receive a $2,000 check from a vendor for a rebate.
General Ledger Posting:
Inventory Postings
Transaction Type (G/L Source): Inventory Control This source can be affected only from a Physical Inventory or manual Inventory Adjustment.
Example: A product quantity was adjusted from 10 to 12. This resulted in a $170 in inventory.
General Ledger Posting:
Finance Charge Posting
Transaction Type (G/L Source): Finance Charge Example: A Finance Charge of $1650 was generated by the Month End process for all past due invoices.
General Ledger Posting:
Sales Posting
Transaction Type (G/L Source): Sales Journal - Regular Sale Example: An invoice of $1109.50 is generated for a Sales Order. The price of the merchandise is $850 (with a cost of $595), Sales Tax is $59.50, and Freight is $200.
General Ledger Posting:
Transaction Type (G/L Source): Sales Journal - P.O.S Sale with Deposit Example: An order for $200 in merchandise is placed with a deposit of $40.
General Ledger Posting: When the deposit is received:
When $90 worth of merchandise is shipped:
When the remaining $110 of merchandise is shipped:
Example: A customer places an order totalling $1109.50. They pay a 50% deposit on the order ($554.75) when they place it. The order consists of $850 in merchandise (with a cost of $595), $200 in Freight, and $59.50 in Sales Tax.
General Ledger Posting: When the initial deposit is received and the material is ordered:
When the material is delivered and the balance is received:
Example: A customer places an order totalling $1109.50. They pay a 50% deposit on the order ($554.75) when they place it. The order consists of $850 in merchandise (with a cost of $595), $200 in Freight, and $59.50 in Sales Tax. The order is delivered in 2 releases because you need to backorder some of the items.
General Ledger Posting: When the initial deposit is received and the material is ordered:
When the first release of $354.75 worth of merchandise is delivered:
When the second release of $495.25 worth of merchandise is delivered:
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