Customer Service Account Resolution

A/R

(A/R Trade)

Sales Invoices and Credit Memos (Returns)

This accounts receivable account is used when posting invoices and/or returns.

Sales Invoicing Posting: Sales (Cr) + Additional Charges (Dr/Cr) + Tax (Cr) = A/R (Dr).

Returns Posting: Sales Returns (Dr) + Additional Charges (Dr/Cr) + Tax (Dr) = A/R (Cr).

A/R Clearing

Deposit Entry

This account is used when customer payments are entered for a deposit, but before the payments are applied against open invoices.

Cash (Dr) = A/R Clearing (Cr)

A/R Transfer

A/R Item Transfer

This temporary clearing account is used when invoices or credit memos are transferred from one customer to another customer.

A/R (Dr/Cr) = A/R Transfer (Dr/Cr)

Cash Discount

Payment Application

This account is used when paying invoices with cash discount payment terms.

Payment Application Posting: A/R Clearing (Cr) + Cash Discount (Dr/Cr) = Cash (Dr).

Sales

Sales Invoices Only

This is a sales general ledger account. This account equals the total item price added to the Post With Item charges.

Sales Posting: Sales (Cr) + Additional Charges (Dr/Cr) + Tax (Cr) = A/R (Dr).

Sales Discount

Sales Invoices Only

This account is used for companies that want to track sales discount in the general ledger (the difference between sales at list price and net sales).

Sales Posting: Sales at List (Cr) + Additional Charges (Dr/Cr) + Sales Discount (Dr) + Tax (Cr) = A/R (Dr).

Additional Charges

Sales Invoices and Credit Memos (Returns)

This general ledger account is used for Non-post With Item additional charges. Post With Item additional charges following the general ledger posting associated with the inventory item.

Sales Posting: Sales (Cr) + Additional Charges (Dr/Cr) + Tax (Cr) = A/R (Dr).

Returns Posting: Sales (Dr) + Additional Charges (Dr/Cr) + Tax (Dr) = A/R (Cr).

Inventory

Sales Invoices and Transfers

This general ledger account is used for the total cost of products shipped. It represents the decrease in the value of the inventory.

Inventory Posting: Inventory (Cr) = Cost of Goods Sold (Dr) + Standard Cost Variance (Dr/Cr) [If costing method is Standard].

COGS

Sales Invoices Only

This account is used for the cost of goods sold general ledger account for the total cost of products shipped.

COGS Posting: Inventory (Cr) = Cost of Goods Sold (Dr) + Standard Cost Variance (Dr/Cr) [If costing method is Standard].

Sales Returns

Credit Memos (Returns) Only

This is the sales returns general ledger account. This equals the total item price added to the Post With Item charges.

Returns Posting: Sales Returns (Dr) + Additional Charges (Dr/Cr) + Tax (Dr) = A/R (Cr).

Sales Returns Discount

Credit Memos (Returns) Only

This account is used for companies that want to track sales return discount in the general ledger (the difference between sales returns at list price and net sales returns).

Returns Posting: Sales Returns (Dr) + Additional Charges (Dr/Cr) + Sales Returns Discount (Cr) + Tax (Dr) = A/R (Cr).

Inventory Returns

Credit Memos (Returns) Only

This is the general ledger account for inventory for returns (separate because of the addition of the return code and disposition code masks). This is used only when the returned items are put back into inventory. This represents the total item cost.

Inventory Returns Posting: Inventory (Dr) = Cost of Goods Sold Returns (Cr) + Standard Cost Variance (Dr/Cr) [If costing method is Standard].

COGS Returns

Credit Memos (Returns) Only

This is the cost of goods sold returns general ledger account for the total cost of items returned.

COGS Posting: Inventory (Dr) = Cost of Goods Sold Returns (Cr) + Standard Cost Variance (Dr/Cr) [If costing method is Standard].

Returns Expense

Credit Memos (Returns) Only

This general ledger account is used if inventory is not returned or is returned, then not restocked (for example, scrapped). It posts against the COGS Returns account when the return is of the type inventory, but the returned items are not put into inventory.

Returned and Not Restocked Posting: Returns Expense (Dr) = Cost of Goods Sold Returns [COGS] (Cr).

Another Cost of Goods Sold account is usually used for Returns Expense. 

Transfer Sales

Transfers only

This general ledger account is used for the cost of products shipped in a transfer. This is the amount that was transferred out of a location. The location used in general ledger resolution is the shipping location.

Receipt of Transfers Posting: In Transit [Inventory] (Cr) = Transfer Sales (Dr).

Posting occurs as a result of the purchase order receipt process.

In Transit

Transfers only

This general ledger account is used for the value of products shipped in a transfer while in transit.

Shipping Order for Transfers Posting: In Transit [Inventory] (Dr) = Inventory (Cr).

Posting occurs in Invoice Create and Print when the Prep Transfer Orders option is selected.

Drop Ship Sales

Drop Ship Sales Invoices only

This account is used when shipping directly from a supplier to a customer, without receiving inventory into a warehouse location.

Sales Posting: Drop Ship Sales (Cr) + Additional Charges (Dr/Cr) + Tax (Cr) = A/R (Dr).

Drop Ship COGS

Drop Ship Sales Invoices only

The is the cost of products shipped directly from a supplier to a customer (entered in  Voucher Entry).

COGS Posting: Accounts Payable (Cr) = Cost of Goods Sold (Dr) + Standard Cost Variance (Dr/Cr) [If costing method is Standard].

Ship and Debit

Ship and Debit Invoices

This account stores ship and debit amounts after a ship and debit invoice is posted.

NOTE If this account is specified in Ship and Debit Maintenance, it is used instead of an account resolved by the hierarchy set up in Customer Service Control Maintenance.

Invoice Posting: Cost of Goods Sold (Dr) + Ship and Debit (Dr) = Inventory (Cr)

Invoice Posting (standard cost basis only): Cost of Goods Sold (Dr) + Ship and Debit (Dr) = Inventory (Cr) + Ship and Debit Variance (Cr)

Ship and Debit Variance

Ship and Debit Invoices

This account stores the variance amount for ship and debit amounts.

Note This account is only used if you have selected standard cost as the cost basis. For more information, see Ship and Debit FAQ.

NOTE If this account is specified in Ship and Debit Maintenance, it is used instead of an account resolved by the hierarchy set up in Customer Service Control Maintenance.

Invoice Posting (standard cost basis only): Cost of Goods Sold (Dr) + Ship and Debit (Dr) = Inventory (Cr) + Ship and Debit Variance (Cr)

Bill and Hold Clearing

Bill and Hold Invoices

This account stores bill and hold amounts after a bill and hold invoice is posted, but before the bill and hold order ships.

Invoice Posting: Cost of Goods Sold (Dr) = Bill and Hold Clearing (Cr)

Bill and Hold Shipment Posting: Bill and Hold Clearing (Dr) + Bill and Hold Variance (Dr) = Inventory (Cr)

Bill and Hold Shipment Posting: Bill and Hold Clearing (Dr) = Inventory (Cr) + Bill and Hold Variance (Cr)

Bill and Hold Variance

Bill and Hold Invoices

This account stores the variance amount for bill and hold amounts. This is the difference between the cost for the pre-bill invoice and the cost of the products that ship for a bill and hold order.

Bill and Hold Shipment Posting: Bill and Hold Clearing (Dr) + Bill and Hold Variance (Dr) = Inventory (Cr)

Bill and Hold Shipment Posting: Bill and Hold Clearing (Dr) = Inventory (Cr) + Bill and Hold Variance (Cr)