Sales Accounting

Sales Accounting – Intro

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FAQs

Sales Invoices are used to record sale of products/services. They are used when a customer does not pay you at the point of sale.

A Sales Invoice is a legal document issued to your customer and it contains the following information –

  • quantities of products/ services supplied,
  • respective price(s),
  • payment terms,
  • amount or balance owed,
  • due date for balance payment.

Posting a Sales Invoice increases the

  • customer’s balance (amount customer owes to you) and
  • account receivables.

Refer Sales Invoice – Configuration and Reference for a glossary of fields and actions in Sales Invoice document.

Refer Using Sales Invoices to learn about creating Sales Invoices in the Salesorder app.

Refer Using Sales Invoices List to learn about processing sales invoices in batches/bulk.

A Cash Sale is recorded when a customer pays you in full at the point of sale.

The Cash Sale document records –

  • quantities of products/ services supplied,
  • respective price(s) and
  • payment method (i.e debit card, credit card, etc).

In accounting terms, Cash Sales are recorded in your cash/ bank balance, while invoices are recorded in your Accounts Receivable Ledger (Sales Ledger).

Posting a Cash Sale does not impact the customer balance but it increases your cash balance.

Refer Cash Sales – Configuration and Reference for a glossary of fields and actions in Sales Invoice document.

Refer Using Cash Sales to learn about creating Cash Sales in the Salesorder app.

The “Payment from Customers” Document has three purposes:

  • Record the payment method & amount of a payment received.
  • Track and apply the balances of any unused credit or payments.
  • Allocate amounts from Customer Credit Notes.
  • When using the Action ‘Receive Payment‘ on the Customer Document, all the Sales Invoices with outstanding balances for this Customer will show.
  • When using the Action ‘Receive Payment‘ on a Sales Invoice Document, only this Sales Invoice will display.

The Customer Credit Note/ Credit Memo can be used in following ways:

  • Allow a Customer to buy goods or services on a future date at specified amount.
  • Credit Notes can be used to adjust incorrect invoice values in Sales Ledger.
  • When a Customer returns goods, Credit Note is used to adjust the accounts and confirm receipt of the goods by sending a Credit Note to the Customer.

In all cases you should send a copy of the Credit Note to your Customer.

1. Issue Credit Note from Customer Master

Go to: SALES > Customers > Select a Customer > Actions > New Credit Note

2. Issue Credit Note from Sales Invoices 

Go to: SALES > Sales Invoices > Select Invoice > Actions > New Credit Note

Refer Using Customer Credit Notes  to learn about issuing Credit Notes.

A Customer Refund records the following:

  • Details of the return
  • The corresponding amount paid back to the customer.
  • The method used to pay (Cash, Check, Card etc).
  • The source account you paid the money from.

1. Issue Refund from Customer Master – Using this option, you may issue an arbitrary refund amount to a Customer. To issue a Refund, go to:

SALES > Customers > Select a Customer > Actions > New Customer Refund.

2. Issue Refund for Credit Note – You may issue a refund for a Credit Note, in case you want to convert an outstanding Customer Credit Note or credit balance to cash.

For example, consider a scenario where the

  • Customer has overpaid you or
  • a previous credit has been applied to a Customer’s account

and they wish to receive that credit as cash. To issue a refund on Credit Note, go to:

SALES > Customer Credit Notes > Select Credit Note > Actions > Create Refund

3. Issue Refund from Cash Sale – To issue a refund for a Cash Sale, go to:

SALES > Cash Sales > Select Cash Sale > Actions > Create Refund

Refer Using Customer Refunds  to learn about issuing refunds.

Reference for Sales Accounting

  • Refer Cash Sale – Configuration and Reference for a glossary of fields and actions in Cash Sale document.
  • Refer Using Cash Sales to learn about creating Cash Sales in the Salesorder app.
  • Refer Using Customization to add or customize fields in Cash Sales document.
  • Refer Using Ref #s to learn how to configure reference number for your Cash Sales. Reference numbers are used to uniquely identify transactions in Salesorder app.
  • Refer Using Templates to learn how to customize print layouts and formats for Cash Sales by configuring print templates.
  • Refer Cash Sale – Configuration and Reference for a glossary of fields and actions in Cash Sale document.
  • Refer Using Cash Sales to learn about creating Cash Sales in the Salesorder app.
  • Refer Using Customization to add or customize fields in Cash Sales document.
  • Refer Using Ref #s to learn how to configure reference number for your Cash Sales. Reference numbers are used to uniquely identify transactions in Salesorder app.
  • Refer Using Templates to learn how to customize print layouts and formats for Cash Sales by configuring print templates.

Related functions

  • See Order Capture to learn about order capture process in Salesorder app.
  • See Order Fulfillmentto learn about order fulfillment process that follows the order capture work flow.

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