Question: Order Entry Additional Charge Maintenance includes two check boxes: Updates Sales History and Post with Items. How are these used?
Answer: These check boxes have a significant impact on how the software functions with the Executive Information Systems module and displays total sales.
The Updates Sales History check box controls whether the charge is used to update history tables.
If the Post with Items check box is selected, the software will post an additional charge into the general ledger account of the product. If the check box is cleared, the software will post to the specified general ledger account of the additional charge (based on the account resolution of additional charges set up in Customer Service Control Maintenance).
The following tables are used to describe the effects of generating orders with additional charges that update sales history and post with products, as well as the effect on general ledger posting versus Executive Information Systems windows (this example uses Customer Analysis).
Step 1: Create additional charges with Updates Sales History and Post with Items options:
|
Charge Type |
Update Sales History |
Post with Items |
Additional Charge General Ledger Account |
|
A |
Yes |
Yes |
No account needed |
|
B |
No |
No |
Yes |
|
C |
Yes |
No |
Yes |
|
D |
No |
Yes |
No account needed |
Step 2: Create customer sales orders using the four additional charge types:
|
Order Quantity |
Line Items Total |
Additional Charge Total |
Grand Total |
Charge Type |
|
10 units |
$ 140 |
$ 50 |
$ 190 |
A |
|
12 units |
$ 168 |
$ 45 |
$ 213 |
B |
|
14 units |
$ 196 |
$ 65 |
$ 261 |
C |
|
15 units |
$ 210 |
$ 58 |
$ 268 |
D |
|
Total: |
$ 714 |
$ 218 |
$ 932 |
|
Step 3: Run general ledger posting after invoices have been created for the orders and compare with Invoice Inquiry (accessed from Customer Sales Inquiry).
|
Charge Type |
A/R (Dr) |
Sales (Cr) |
Add. Chg. (Cr) |
COGS (Dr) |
Inventory (Cr) |
Total Sales |
Merch. Amount |
Add.Chg. Amount |
Total Costs |
|
A |
$ 190 |
$ 190 |
|
$92.30 |
$92.30 |
$ 190 |
$ 140 |
$ 50 |
$92.30 |
|
B |
$213 |
$ 168 |
$ 45 |
$110.76 |
$110.76 |
$ 168 |
$ 168 |
|
$110.76 |
|
C |
$261 |
$196 |
$ 65 |
$129.22 |
$129.22 |
$ 261 |
$196 |
$65 |
$129.22 |
|
D |
$ 268 |
$ 268 |
|
$ 138.45 |
$138.45 |
$ 210 |
$ 210 |
|
$138.45 |
|
Total: |
$ 932 |
$ 822 |
$110 |
$470.73 |
$470.73 |
$829 |
$714 |
$115 |
$470.73 |
The variance in total sales and the sales general ledger account of $7 is due to the way in which Invoice Inquiry displays and adds up the columns to obtain a total sales amount. It sums up the merchandise amount and additional charge amount columns to derive total sales.
Only additional charge types A and B display the sales general ledger account as equal to the total sales column in Invoice Inquiry.
Executive Information Systems windows contain parameters of dates to inquire on sales by product, customer, category, or sales representative. The general ledger is based only on accounting periods. Due to this, the information you want to retrieve from the Executive Information Systems module may not be comparable with your company’s general ledger sales account(s). However, the tables above depict ways in which additional charges can be set up to assure sales amounts match the general ledger account amount.