Below is a list of the standard General Ledger transactions that get created in Versa when a Shopify order is processed and when you issues POs for inventory.

Sales Order to Cash Cycle

Versa use a customer deposit account to hold the revenue (Deposit account is generally a liability account in your GL) that is generated from new orders. The amount is held in customer deposit account until it is shipped and invoiced,  then booked as revenue.  For newly imported order that is already fulfilled in Shopify, Versa will also first book the revenue in customer deposit account first and then move to revenue all together.

Order imported from Shopify

• The following GL Entry is created when an order is imported (prepaid orders). Each customer in Versa has a sub-account under the default account Customer Deposit.

When Order is Shipped

• The following GL Entry is created when an order is Shipped and new invoice is created. This entry is part of the posting of the invoice below.

CR - Asset Account: Inventory Finished Goods
(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.

When Invoice is created from Order

Invoice is automatically created if you ship the order in Shopify (or using a Shopify app to ship the order). If you choose to ship the order in Versa, you can either automatically create the invoice upon shipping or manually create it later.

Invoice will match what was shipped

• 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 for order that is already paid in Shopify. For fully pre-paid orders, invoice payment is applied automatically if you ship the orders in Shopify or use a Shopify app to ship the order.

CR - Asset Account: Accounts Receivable
(Detailed Explanation of how the specific accounts are selected)

When an item is returned from Order

You can perform a return on a shipped item in Shopify on an order and Versa will import the return into the system

• The following GL Entry is created and associated to the invoice created from the original shipment.

CR - a Cash account (this account is what you set up in Shopify webstore setting under Settings For Refunds, Account To Refund/Return From )

For the return of inventory if inventory is restocked.

DR - Inventory Account

CR - (this is account is from Shopify webstore setting, Settings For Inventory Adjustments, Balancing Account for Inventory Adjustments. Generally this should be COGS account for your inventory)

When an item is returned and exchanged for another item of the same value from Order

An exchange is done in 2 parts. One is a return on the original item and one is a new sales on the new item.

• For the first part for the return, the following GL Entry is created and associated to the first invoice created from the original shipment.

CR - Customer Deposit Account (for the customer and this holds the return amount until it is used to "pay" for the new item)

• For the second part the new item, the system will create add the new item to the original order in versa. Create a new invoice from the new item and then apply payment to it.  The following GL Entry is created

CR - Revenue (associated to the product)

For the payment to the invoice above

CR Accounts Receivable.

DR Customer Deposit Account

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.

Creating a Bill

• The following GL Entry is created when a bill is created and use linked to shipment receipt to link to the POs

CR - Liability Account: Accounts Payable for the supplier