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faq:transaction_postings

Postings into the general ledger

This page lists different transactions that can be created within Windward System Five and what affect these transactions have on the general ledger, customers and inventory.

Replication of any of the information below can be done by creating the specified transaction in a training database and running the List Trasactions by G/L Number Report.

Invoices

The following examples have been created with the following set up:
  • The inventory item being used is in category 100.
  • The inventory item has a quantity of 10 available for sale
  • The retail price is $110.00 Including GST of 10%
  • The cost price of $50.00 Ex GST.
  • A quantity of one(1) is sold on the invoice.

Invoices post automatically when a user exists the invoice. When a user enters an invoice in edit mode, the invoice automatically unposts.

Accounts Receivable (Type A)

General Ledger Posting

Account Decription Debit Credit
1050 Accounts Receivable - Debtors 110.00
1200 Inventory on Hand 50.00
2080 G.S.T. Collected 10.00
4100 Income From Sales 110.00
4100 Income From Sales 10.00
5100 Cost Of Sales 50.00

Customer

  • The customer account balance is increased by $110.00.
  • A new entry is created on the Invoices page of the customer record.

Inventory

  • The Available quantity is decreased by one.
  • The Financial quantity is decreased by one.

GST INCLUDED

  • The GST Collected value is increased by $10.00
  • The Income 4100 is reduced from GST Included Price of $110 by $10.00



Cash (Type C)

General Ledger Posting

Account Decription Debit Credit
1020 Cash Clearing 110.00
1200 Inventory on Hand 50.00
2080 G.S.T. Collected 10.00
4100 Income From Sales 110.00
4100 Income From Sales 10.00
5100 Cost Of Sales 50.00

Customer

  • If a customer is attached, a new entry is created on the Invoices page of the customer record.

Inventory

  • The Available quantity is decreased by one.
  • The Financial quantity is decreased by one.

GST INCLUDED

  • The GST Collected value is increased by $10.00
  • The Income 4100 is reduced from GST Included Price of $110 by $10.00



Estimate (Type E)

General Ledger Posting

  • Estimate invoices have no affect on the general ledger.

Customer

  • If a customer is attached, a new entry is created on the Invoices page of the customer record.

Inventory

  • Estimate invoices have no affect on inventory quantities.



General Ledger Posting

Account Decription Debit Credit
1020 Cash Clearing 110.00
1030 Paid Out Clearing 110.00

Customer

  • Paid Out invoices have no affect on customers.

Inventory

  • Paid Out invoices have no affect on inventory as ledger numbers are sold not inventory items.



Received on Account (Type R)

General Ledger Posting

Account Decription Debit Credit
1020 Cash Clearing 110.00
1050 Accounts Receivable - Debtors 110.00

Customer

  • The customer account balance is decreased by $110.00.

Inventory

  • Received on Account invoices have no affect on inventory.



Work Order (Type W)

General Ledger Posting

  • Work Order invoices have no affect on the general ledger.

Customer

  • If a customer is attached, a new entry is created on the Invoices page of the customer record.

Inventory

  • The Work Order quantity is increased by one.
  • The Available quantity is decreased by one.
  • The Financial quantity unaffected.



Layby (Type Y)

General Ledger Posting

  • Layby invoices have no affect on the general ledger.

Customer

  • A new entry is created on the Invoices page of the customer record.

Inventory

  • The Layby quantity is increased by one.
  • The Available quantity is decreased by one.
  • The Financial quantity unaffected.



Payments On Account

Payment against Account Receivable invoice

General Ledger Posting

Account Decription Debit Credit
1020 Cash Clearing 110.00
1050 Accounts Receivable - Debtors 110.00

Customer

  • The customer account balance is decreased by $110.00.
  • A new entry is created on the Payments page of the customer record.



Payment against Work Order invoice

  • If a payment is to be made against a Work Order invoice, a customer must be selected on the invoice.

General Ledger Posting

Account Decription Debit Credit
1020 Cash Clearing 110.00
1050 Accounts Receivable - Debtors 110.00

Customer

  • The customer account balance is decreased by $110.00.
  • A new entry is created on the Payments page of the customer record.



Payment against Layby invoice

General Ledger Posting

Account Decription Debit Credit
1020 Cash Clearing 110.00
1050 Accounts Receivable - Debtors 110.00

Customer

  • The customer account balance is decreased by $110.00.
  • A new entry is created on the Payments page of the customer record.

Bills

The following example is a scenario where a $100.00 bill has been entered for inventory received.

General Ledger Posting

Account Desctiption Debit Credit
1080 GST Input Credit 10.00
1200 Inventory On Hand 100.00
2050 Accounts Payable - Creditors 110.00

Supplier

  • The supplier account blance is increased by $110.00.
  • A new entry is created on the Bills page of the supplier record.

Cheques

The following example is a payment for a bill being drawn from the default main bank.

General Ledger Posting

Account Desctiption Debit Credit
1010 Main Bank 110.00
2050 Accounts Payable - Creditors 110.00

Supplier

  • The supplier account balance is decreased by $110.00.
  • A new entry is created on the Cheques page of the supplier record.
faq/transaction_postings.txt · Last modified: 2012/07/05 18:42 by 119.225.209.134