Hi Everyone I'm not sure if this is applicable everywhere but just for information I wanted to let you know the feedback I got from a local accountant.
If a customer buys something and pays for it in advance. The transaction should debit your cash account (or bank account) and credit a Customer Deposit or 'Prepayment' Liability account. Accounts Receivable technically is only applicable if you supply the goods first and then bill the customer afterwards. How and when the Tax Invoice is created really important as this is the trigger for the when you can classify it as a sale. I'll amend my Ofbiz setup to reflect this. Thanks Sharan Sharan-F wrote: > > Un grand merci monsieur > > I'm not an accountant either so I'm getting a local accountant to give me > their feedback. > > I've taken a look at your links and I think the key to the problem is > about the timing of the creation of the Sales Invoice. It probably depends > on when you can officially/legally record that a sale has taken place. > > I'll let you know what I find out. > > Thanks again > Sharan > > > jacques.le.roux wrote: >> >> Hi, >> >> From: "Sharan-F" <[EMAIL PROTECTED]> >>> >>> Hi Everyone >>> >>> I've just run through a test with the online Hotwax Demo and found what >>> I >>> think is an accounting transaction error with applying payments. >>> >>> I created a Sales Order using DemoCustomer through the store and chose >>> the >>> offline payment method. >>> >>> I then logged into OFBiz using admin to view the Sales Order and receive >>> the >>> offline payment. >>> I then did a Quick Ship Entire Order. This then created the accounting >>> transactions. >>> >>> The 'Sales Shipment' and 'Sales Invoice' transactions are fine but the >>> Payment Applied transaction Credits and then Debits the Accounts >>> Receivable account only (so takes money out of and puts it back into the >>> same GL account in the same transaction) – which seems a bit strange to >>> me. >>> >>> I think it should Credit Accounts Receivable and Debit Undeposited >>> Receipts >>> or the Company Bank Account. Am I missing something? >> >> From http://en.wikipedia.org/wiki/Accounts_receivable, I read >> <<To record a journal entry for a sale on account, one must debit a >> receivable and credit a revenue account. When the customer pays >> off their accounts, one debits cash and credits the receivable in the >> journal entry. The ending balance on the trial balance sheet >> for accounts receivable is always debit.>> You see they don't speak about >> UNDEPOSITED RECEIPTS >> >> In a similar invoice than yours I see 2 debits and 1 credit to >> ACCOUNTS_RECEIVABLE 120000 ACCOUNTS RECEIVABLE CURRENT_ASSET so for >> me it seems ok : <<The ending balance on the trial balance sheet for >> accounts receivable is always debit.>> >> >> BTW if you look at >> https://localhost:8443/accounting/control/TrialBalance?organizationPartyId=Company >> it should be ok (UNDEPOSITED >> RECEIPTS should be credited with the cash received) >> >> My 2 cents (I'm not an accountant, I'm French : we don't use exactly the >> same type of accounting here, I work as an independent so I >> don't use double entries accounting as I'm allowed to use simple >> accounting -collections and disbursements-, so I may be wrong, >> somewhere) >> >> Jacques >> >>> Any feedback would be appreciated. >>> >>> Thanks >>> Sharan >>> >>> -- >>> View this message in context: >>> http://www.nabble.com/Possible-Payments-Applied-Transaction-Error-tp18249013p18249013.html >>> Sent from the OFBiz - User mailing list archive at Nabble.com. >>> >>> >> >> >> > > -- View this message in context: http://www.nabble.com/Possible-Payments-Applied-Transaction-Error-tp18249013p18394644.html Sent from the OFBiz - User mailing list archive at Nabble.com.
