Below is a list of the standard General Ledger transactions that get created through the various processes in Versa Cloud ERP (shown in red). They are grouped by the two main business processes. Also included is whether Inventory stock levels are also effected (shown in green).
Sales Order to Cash Cycle
Creating a Quote
- No GL Entries (or Inventory changes) are made when a quote is created. A quote, is just an indication of a future Sales Order.
Converting a Quote to a Sales Order / Creating a New Sales Order
- No GL Entries are made when a Sales Order is created. Until the order is shipped no inventory changes are made either. The Sales Order quantities will show on the parts reports (indicating that there are quantities against a non shipped Sales Order).
- If there is payment collected against the sales order, this is considered a deposit. See how Versa handles this.
Picking and Packing a Sales Order
- No GL entries are created when picking and packing. Since the goods are still in your warehouse no inventory is impacted either.
Shipping an Order
- The following GL Entry is created when an order is Shipped:
CR - Asset Account: Inventory
(Detailed Explanation of how the specific accounts are selected)
- Your inventory will decrease, based on the line item quantities that were part of the shipment.
Posting the Invoice
- The following GL Entry is created when an Invoice is Posted (not on creation):
CR - Revenue Account: Revenue
( Detailed Explanation of how the specific accounts are selected)
Receiving Payment on the Invoice
- The following GL Entry is created when a Invoice Payment is Posted:
CR - Asset Account: Accounts Receivable
(Detailed Explanation of how the specific accounts are selected)
If the associated order has a payment. A deposit is collected. This deposit should be used to reduce the amount owing on the invoice. See details here.
Purchase Order to Bill Cycle
Creating a Purchase Order
- No GL Entries are made when a Purchase Order is created. Until the order is received no inventory changes are made either. The Purchase Order quantities will show on the parts reports (indicating that there are quantities against a non received Purchase Order).
Posting a Shipment Receipt
- The following GL Entry is created when a Shipment Receipt is Posted (not on creation):
CR - Liability Account: Accounts Payable
(Detailed Explanation of how the specific accounts are selected)
- Your inventory will increase, based on the line item quantities that were part of the shipment receipt.
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