Home > Accounts > Concepts > Accounts Interface Transactions

Accounts Interface Transactions

This section will outline the various transactions identified by the Accounts Interface process and show the general ledger accounts that are affected. The Accounts Interface process scans various transactions that will affect the general ledger, looking for any new transactions that have been performed since the last time the Accounts Interface process was run. For each transaction it needs to determine which general ledger account to credit and debit. See Accounts Interface for more details.

Note: The debits and credits shown below are for the normal transactions. For example, when we do a stock adjustment we are usually decreasing stock so we credit the stock account. However, if we were to increase stock we would actually debit the stock account. If we do a debit of a negative number, the system will automatically change this to a credit of the same value.

The following sections will describe which accounts are debited and credit for various transactions.

Stock Transactions

Sales

Debtors

Creditors

Stock Transactions

This section covers all stock adjustments except those resulting from sales (which are covered in Sales below).

Stock Adjustment

Assuming we normally decrease stock for a stock adjustment, the following accounts are adjusted:

DR

CR

Stock Adjustment Reason A/c

D/C/G/SG Stock A/c

Example:

We record a theft of 3 items worth $10 each.

Accounts

DR

CR

D/C/G/SG Stock A/c

30

 

Stock Adjustment Reason A/c

 

30

Stocktake

Assuming we normally decrease stock as a result of a stocktake, the following accounts are adjusted:

DR

CR

D/C/G/SG Stock Adj A/c

D/C/G/SG Stock A/c

Example:

We counted 3 units but expected 4. We need to make an adjustment of one item for $40.

Accounts

DR

CR

D/C/G/SG Stock A/c

30

 

D/C/G/SG Stock Adj A/c

 

30

Goods Receipt, Invoice Received (when stock received)

Stock can either be received by goods receipt (if doing separate goods receipt and invoices) or by invoices (if you have combined goods receipts/invoices). In both cases, we record the stock at the expected cost. When the invoice is accepted, we can make a cost adjustment, if the actual cost and expected cost are different (see below).

Note: When an invoice is accepted, it also affects the creditor accounts. See Creditors below.

DR

CR

D/C/G/SG Stock A/c

Receipts A/c

Example:

We receive 4 units at $4 each.

Accounts

DR

CR

D/C/G/SG Stock A/c

16

 

Receipts A/c

 

16

Invoice Cost Adjustment (the difference between expected cost and invoiced cost)

When an invoice is received, we compare the difference between the actual cost paid and the expected cost (which was used to record the receipt of the items, as above). If the difference is not zero, we need to write an adjusting entry to correct this.

Note: When an invoice is accepted, it also affects the creditor accounts. See Creditors below.

DR

CR

D/C/G/SG Stock A/c

Receipts A/c

Example

We receive 4 units at $4 each but we were actually invoiced $5. We have an adjustment of $1 for each of the four units.

Accounts

DR

CR

D/C/G/SG Stock A/c

4

 

Receipts A/c

 

4

Internal Transfers

When an internal transfer is made, we are taking stock from one location and putting it into another. This means we end up with two transactions, one for each location. We are assuming that the stock cannot get lost between the two locations and that the transfer can be considered to have happened immediately. For example, this would be the case when transferring stock from a bottleshop to a bar.

For the receiving location, we do:

DR

CR

D/C/G/SG Stock A/c

D/C/G/SG Transfer A/c

For the sending location, we do:

DR

CR

D/C/G/SG Transfer A/c

D/C/G/SG Stock A/c

Example

We transfer three bottles of wine worth $10 each from the bottleshop to the bar.

Accounts

DR

CR

D/C/G/SG Transfer A/c (Bottleshop)

30

 

D/C/G/SG Stock A/c (Bottleshop)

 

30

D/C/G/SG Stock A/c (Bar)

30

 

D/C/G/SG Transfer A/c (Bar)

 

30

Transfer Requests/Transfer Sends

The Transfer Request/Transfer Send is a pair of processes. One location asks another location for stock. The other location sends the stock. The original location receives the stock. This is more complicated than the Internal Transfers. You have to keep track of stock in transit and allow for possible stock losses during the transfer. We assume that the stock belongs to the sending location and any losses affect the sending location, not the requesting location. If the sending location is a warehouse, there could be warehouse fees involved.

When the sending store updates their Transfer Request to say stock is send, the following accounts are updated:

DR

CR

D/C/G/SG Transfers A/c

D/C/G/SG In Transit A/c

D/C/G/SG Warehouse Fee Income A/c

When the receiving store updates the Transfer Request the following accounts are affected at the receiving store. Note that the value of stock at the receiving location includes warehouse fees (see Example 2 below).

DR

CR

D/C/G/SG Stock A/c

D/C/G/SG Warehouse Fees

D/C/G/SG Transfers A/c

D/C/G/SG Contra Warehouse Fee A/c

At the same time, the following accounts are affected at the sending location to show the stock was received:

DR

CR

D/C/G/SG Intransit A/c

Stock Adjustment Code (INTRANSIT) A/c

D/C/G/SG Warehouse Fee Income A/c

D/C/G/SG Stock A/c

D/C/G/SG Transfers A/c

The Stock Adjustment Code (INTRANSIT) A/c is used to record any losses in transit, while the Warehouse Fee Income A/c, allows for a lose of warehouse income due to the stock loss.

Example 1

The first example is simply the fact that Store A requests 2 units worth $10 each from Store B. Store B sends all 3 units and nothing is lost in transit.

When Store B sends their stock:

Accounts

DR

CR

D/C/G/SG Transfer A/c (Store B)

20

 

D/C/G/SG In Transit A/c (Store B)

 

20

When Store A receives the stock:

Accounts

DR

CR

D/C/G/SG Stock (Store A)

20

 

D/C/G/SG Transfer A/c (Store A)

 

20

D/C/G/SG In Transit A/c (Store B)

20

 

D/C/G/SG Stock (Store B)

 

20

Example 2

Store A asks for 5 units of stock worth $10 each from the warehouse. The warehouse charges a picking fee or $1 per item.

When the warehouse sends their stock:

Accounts

DR

CR

D/C/G/SG Transfer A/c (Warehouse)

55

 

D/C/G/SG In Transit A/c (Warehouse)

 

50

D/CG/SG Warehouse Fee Income (Warehouse)

 

5

Store A receives the stock but only 4 units were received. There is a loss of one item in transit. Store A accounts are adjusted as follows. Note that the stock is increased by the original value of the stock plus warehouse fees.

Accounts

DR

CR

D/C/G/SG Stock (Store A)

44

 

D/C/G/SG Transfer A/c (Store A)

 

44

D/C/G/SG Warehouse Fees A/c (Store A)

4

 

D/C/G/SG Contra Warehouse Fees A/c (Store A)

 

4

For the warehouse we need to show that four items were received but one was lost.

Accounts

DR

CR

D/C/G/SG In Transit A/c (Warehouse)

50

 

Stock Adj (INTRANSIT) A/c

10

 

D/C/G/SG Stock A/c (Warehouse)

 

50

D/CG/SG Warehouse Fee Income (Warehouse)

1

 

D/C/G/SG Transfers A/c (Warehouse)

 

11

Stock Revaluation

This transaction allows you to alter the average cost of an item. If we are increasing the value of the item, we adjust the following accounts:

DR

CR

D/C/G/SG Stock A/c

D/C/G/SG Stock Adj A/c

We have 4 units each worth $10. We need to change the cost to $11. This results in a change of $1 to each item.

Accounts

DR

CR

D/C/G/SG Stock A/c

4

 

D/C/G/SG Stock Adj A/c

 

4

Cost Adjustments

Due to the way average cost calculations are performed (see Average Cost Considerations), there may be cost adjustments that need to be made.

DR

CR

D/C/G/SG Cost Adjust A/c

D/C/G/SG Stock A/c

We have an adjustment of $5 to make.

Accounts

DR

CR

D/C/G/SG Cost Adjust A/c

5

 

D/C/G/SG Stock A/c

 

5

Sales

Sales are made at the POS and affect the following accounts. Returns can be treated similar to sales, except the affect the Returns A/C not the Sales A/c. The deposits paid on customer orders, laybys and CODs are also tracked.

Dr

Cr

Combination of:

Tender A/c

Debtors A/c

Deposits A/c

Intra Location A/c

Combination of:

D/C/G/SG Sales A/c

Tax Credit A/c

Tender Rounding A/c

Intra Location A/c

D/C/G/SG Discount A/c

Discount A/c

Stock is also adjusted by the COGS value.

Dr

Cr

D/C/G/SG COGS A/c

Contra Stock A/c

Contra Stock A/c

D/C/G/SG Stock A/c

The Intra Location A/c and Contra Stock A/c require more detailed explanation.

The Intra Location A/c is used for sales which are processed at multiple locations, for example a drink bought in a bar is put on a hold, recalled in the restaurant and paid off. If we were to look solely at the location specific parts of the sale, the items sold would not equal to the amount tendered. The Intra Location A/c is used to balance the accounts for each location. Intra Location A/c's are only used if an imbalance occurs. If a sale is processed entirely in one location, you should not see any Intra Location A/c transactions. The total of all Intra Location A/c's across all locations should be zero. See Example 5 below.

Contra Stock A/c is used to allow for the fact that an item sold in one location may have its stock decremented at another location, for example an item is sold at a store but the stock is delivered from the warehouse. The data for stock is extracted from a separate place to the sales and so you will always have transactions to the Contra Stock A/c, as they are created separately. The total of all Contra Stock A/c's across all locations should be zero.

Example 1

We sell an item for $33 ($30 sales pus $3 tax) and the customer pays $33 cash. The item was worth $20.

Accounts

Dr

Cr

Cash A/c

33

 

D/C/G/SG Sales A/c

 

30

Tax Credit A/c

 

3

D/C/G/SG COGS A/c

20

 

Contra Stock A/c

20

20

D/C/G/SG Stock A/c

 

20

Example 2

We sell an item for $40 and give a $7 discount. The customer pays $33 cash. The item was worth $20.

Accounts

Dr

Cr

Cash A/c

33

 

D/C/G/SG Sales A/c

 

30

Tax Credit A/c

 

3

D/C/G/SG Discount A/c

7

 

Discounts A/c

 

7

D/C/G/SG COGS A/c

20

 

Contra Stock A/c

20

20

D/C/G/SG Stock A/c

 

20

Example 3

Customer orders an item worth $33 ($30 sales + $3 tax). We receive a $10 cash deposit from a customer for their order.

Accounts

Dr

Cr

Cash A/c

10

 

Deposits A/c

 

10

We receive a further $23 to complete the customer order. The item was worth $20

Accounts

Dr

Cr

Cash A/c

23

 

Deposits A/c

10

 

D/C/G/SG Sales A/c

 

30

Tax Credit A/c

 

3

D/C/G/SG COGS A/c

20

 

Contra Stock A/c

20

20

D/C/G/SG Stock A/c

 

20

Example 4

We sell an item for $33 ($30 sales pus $3 tax) and the customer pays $33 cash. The item was worth $20.

Accounts

Dr

Cr

Debtors A/c

33

 

D/C/G/SG Sales A/c

 

30

Tax Credit A/c

 

3

D/C/G/SG COGS A/c

20

 

Contra Stock A/c

20

20

D/C/G/SG Stock A/c

 

20

Example 5

We sell a drink for $5 in the bar (COGS $2). The sale is put on hold. It is then recalled in the restaurant and a $15 meal added (COGS $10). The sale is finalised with $20 cash.

For the Bar location we will have:

Accounts

Dr

Cr

Intra Location A/c

5

 

D/C/G/SG Sales A/c

 

5

D/C/G/SG COGS A/c

2

 

Contra Stock A/c

2

2

D/C/G/SG Stock A/c

 

2

For the Restaurant location we will have:

Accounts

Dr

Cr

Cash A/c

20

 

D/C/G/SG Sales A/c

 

15

Intra Location A/c

 

5

D/C/G/SG COGS A/c

10

 

Contra Stock A/c

10

10

D/C/G/SG Stock A/c

 

10

Debtors

The actual debtors account affected will depend on whether we are summarising debtor accounts or not. If we are summarising, the Debtor account will be the GL Account associated with any MEMCR or MEMDR Account Type as set up in Location Accounts. If we are not summarising, we look up the customer's MEMCR or MEMDR (as required) account (in Customers) and use its GL Account Code.

The sales process above picks up sales made to a debtor account. The system only needs to look payments and adjustments in the MEMCR or MEMDR accounts (as entered in Accounts program).

Payments modify the following accounts:

Dr

Cr

Tender A/c

Debtors A/c

Example

We receive a $15 cash payment from the customer:

Accounts

Dr

Cr

Cash A/c

15

 

Debtors A/c

 

15

Adjustments modify the following accounts (it can be either a debit or credit):

Dr

Cr

Account Adjustment Reason A/c

Debtors A/c

Example

We give a $10 credit note to the customer.

Accounts

Dr

Cr

Customer Credit Note A/c

10

 

Debtors A/c

 

10

Creditors

The actual creditors account affected will depend on whether we are summarising creditor accounts or not. If we are summarising, the Creditor account will be the GL Account associated with the SUPPCR Account Type as set up in Location Accounts. If we are not summarising, we look up the supplier's SUPPCR account (in Suppliers) and use its GL Account Code.

The system will scan through the invoices since the last time the process was run and modify the following accounts:

Dr

Cr

Receipts A/c

Creditors A/c

Tax Account A/c

Creditors A/c

Invoice Variance A/c

Creditors A/c

Example

We are invoiced for 3 units at $10 each plus $1 tax ($11 in total).

Accounts

Dr

Cr

Creditors A/c

 

33

Receipts A/c

30

 

Tax A/c

3

 

But let's say that the total invoice was actually $35, instead of $33. We have a $2 variance.

Accounts

Dr

Cr

Creditors A/c

 

35

Receipts A/c

30

 

Tax A/c

3

 

Invoice Variance A/c

2

 

Next, the system will scan through payments and adjustments in the SUPPCR accounts (as entered in Accounts program).

Payments modify the following accounts:

Dr

Cr

Creditors A/c

Tender A/c

Example

We make a $10 cash payment to the supplier:

Accounts

Dr

Cr

Creditors A/c

10

 

Cash A/c

 

10

Adjustments modify the following accounts (it can be either a debit or credit):

Dr

Cr

Creditors A/c

Account Adjustment Reason A/c

Example

We receive a $5 credit note from the supplier.

Accounts

Dr

Cr

Creditors A/c

5

 

Supplier Credit Note A/c

 

5

 

Converted from CHM to HTML with chm2web Pro 2.85 (unicode)