General Ledger Accounts

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If Sales Order is integrated with the Inventory Management module, it uses the Inventory Management Product Line file to assign the Sales, Cost of Goods Sold, and Inventory accounts. The default Special Item Sales, Cost of Goods Sold, and Purchases accounts and the Customer Deposits account are assigned using Sales Order Options.

If the Inventory Management module is not integrated with Sales Order, Miscellaneous Item Maintenance can be used to assign Sales, Cost of Goods Sold, and Inventory accounts to miscellaneous item codes.

The following General Ledger accounts are used by the Sales Order module.

Accounts Receivable Account

This asset account contains the current receivables balance for your company. It is debited when sales on an account are made, and credited when payments against a customer balance are received. You can use a single Accounts Receivable account for the entire company, or you can assign a separate account for each division using Accounts Receivable Division Maintenance.

Customer Deposits Account

This liability account is debited whenever a customer deposit is entered for a sales invoice. This account is credited from Accounts Receivable Cash Receipts Entry when the deposit for the cash or check is recorded, and is assigned in Sales Order Options. For more information, see Process Customer Deposits.

Inventory Account

This asset account contains the current inventory value on a perpetual basis. It is credited when an inventory item is sold, and debited when an item is returned. You can use a single Inventory account for the entire inventory, or you can assign separate accounts for different product lines using Inventory Management Product Line Maintenance. This account can also be assigned to each miscellaneous item code in Miscellaneous Item Maintenance.

Sales Returns Account

This income account is debited with the sales amount associated with the item being returned (negative sales amount). This account is assigned to each item using Inventory Management Product Line Maintenance.

Special Item Purchases Account

This expense account is credited with the cost of special items, and is used to offset the amount posted to the Special Item Cost of Goods Sold account. The default Special Item Purchases account is assigned using Sales Order Options.

Cash Sales Account

This is either the cash account or a "holding account" for cash sales until the cash deposit is recorded using Accounts Receivable Cash Receipts Entry. This account is debited when cash sale invoices are processed, and credited when cash deposits are recorded. Use a single Cash Sales account for the entire company, or assign a separate account for each division using Accounts Receivable Division Maintenance.

Discounts Allowed Account

This expense account is debited with the discount amount taken for each invoice. This account is assigned in Accounts Receivable Division Maintenance.

Sales Tax Account

This liability account is credited with the sales tax amount of invoices recorded using Invoice Data Entry. You can assign a separate account for each division using Accounts Receivable Division Maintenance, or a separate account for each tax code using Accounts Receivable Sales Tax Account Maintenance.

Special Item Sales Account

This account is credited with the sales amount of special items sold. The default Special Item Sales account is assigned in Sales Order Options and can be overridden in Sales Order Entry or Invoice Data Entry. If Yes is selected in the Post Sales to G/L by Division field in Sales Order Options, the appropriate subaccount number (division indicator) specified in Accounts Receivable Division Maintenance is substituted for the division segment of the default Special Item Sales account.

Cost of Goods Sold Account

This account is debited with the cost of items sold. It is assigned to each product line using Inventory Management Product Line Maintenance. This account can also be assigned to each miscellaneous item code using Miscellaneous Item Maintenance, and can be changed in Sales Order Entry or Invoice Data Entry.

Freight Expenses Account

This income (or offset expense) account is credited with the freight amount charged for each invoice. This account is assigned in Accounts Receivable Division Maintenance.

Sales/Income Account

This income account is credited with the sale amount of each inventory item and miscellaneous charge. For inventory items, the Sales account is assigned using Inventory Management Product Line Maintenance. For miscellaneous charges and miscellaneous items, the accounts can be assigned to charge codes using Miscellaneous Item Maintenance. This account can be manually changed in Sales Order Entry or Invoice Data Entry.

Special Item Cost of Goods Sold Account

This account is debited with the cost of special items sold. The default Special Item Cost of Goods Sold account is assigned using Sales Order Options and can be overridden in Sales Order Entry or Invoice Data Entry. If Yes is selected in the Post Sales to G/L by Division field in Sales Order Options, the appropriate subaccount number (division indicator) specified in Accounts Receivable Division Maintenance is substituted for the division segment of the default Special Item Cost of Goods Sold account.

For more information, see:

Process Customer Deposits

Sales Order Options

Sales Order Entry

Account Maintenance

S/O Invoice Data Entry