Understanding order accounting entries
The following is a list of typical order transactions with explanations of how they affect accounting entries throughout iMIS.
If Enable Multi-Warehouses is enabled on the Inventory System Setup window, warehouse will be an applicable GL account level for some entries.
NoteOrders does not look to AR/Cash for an Income account. If an Income account is not defined within the product's account hierarchy, then no Income account exists, and no Income account will be credited when an order for the product is invoiced.
| Process | Debit | Credit |
|---|---|---|
| Enter an order for a stock item without a payment | No transactions created | No transactions created |
| Invoice an order for a stock item without payment | The Accounts Receivable account defined on the AR/Cash Default Accounts window | The first non-blank Income account defined at the warehouse, product, category, or inventory system setup level |
| The Cost of Goods Sold account specified at the warehouse, product, category, or inventory system setup level | The Inventory account specified at the warehouse, product, category, or inventory system setup level | |
| Enter an order for a non-stock product with a non-credit card cash payment | The cash account defined for the batch, or the default cash account if no account is defined for the batch | The Prepaid account defined on the AR/Cash Default Accounts window |
| Invoice an order for a non-stock product with a non-credit card cash payment | The Prepaid account defined on the AR/Cash Default Accounts window | The Transfer/Clearing account defined on the AR/Cash Default Accounts window |
| The Transfer/Clearing account defined on the AR/Cash Default Accounts window | The Income account specified at the warehouse, product, category, or inventory system setup level | |
| Enter an order for a stock item with a credit card payment (Recognize Credit Card Order Payments as Prepaid Cash option disabled) | No transaction created | No transaction created |
| Invoice an order for a stock item with a credit card payment (Recognize Credit Card Order Payments as Prepaid Cash option disabled) | The cash account specified for the credit card or, if blank, the cash account associated with the original order entry batch | The Income account specified at the warehouse, product, category, or inventory system setup level |
| The Cost of Goods Sold account specified at the warehouse, product, category, or inventory system setup level | The Inventory account specified at the warehouse, product, category, or inventory system setup level | |
| Enter an order for a stock item with a credit card payment (Recognize Credit Card Order Payments as Prepaid Cash option enabled) | The cash account specified for the credit card or, if blank, the cash account associated with the batch | The Prepaid account defined on the AR/Cash Default Accounts window |
| Invoice an order for a stock item with a credit card payment (Recognize Credit Card Order Payments as Prepaid Cash enabled) | The Prepaid account defined on the AR/Cash Default Accounts window | The Transfer/Clearing account defined on the AR/Cash Default Accounts window |
| The Transfer/Clearing account defined on the AR/Cash Default Accounts window | The Income account specified at the warehouse, product, category, or inventory system setup level | |
| The Cost of Goods Sold account specified at the warehouse, product, category, or inventory system setup level | The Inventory account specified at the warehouse, product, category, or inventory system setup level | |
| Post a receipt for a stock inventory item | No transaction recorded | No transaction recorded |
| Post an inventory adjustment to reduce inventory | The Adjustments account specified at the warehouse, product, category, or inventory system setup level | The Inventory account specified at the warehouse, product, category, or inventory system setup level |
| Post an inventory adjustment to increase inventory | The Inventory account specified at the warehouse, product, category, or inventory system setup level | The Adjustments account specified at the warehouse, product, category, or inventory system setup level |
| Cancel an order that contains a recognized cash payment | The Prepaid account defined on the AR/Cash Default Accounts window | The Accounts Receivable account defined on the AR/Cash Default Accounts window |
| Cancel an order without payment | No transactions | No transactions |
| Enter a credit memo against an order for a previously invoiced non-stock item (or a credit memo that does not affect inventory) | No transaction | No transaction |
| Invoice a credit memo against an order for a previously invoiced non-stock item (or a credit memo that does not affect inventory) | The Income account specified at the warehouse, product, category, or inventory system setup level | The Accounts Receivable account defined on the AR/Cash Default Accounts window |
| Enter a credit memo against an order for a previously invoiced stock item | No transaction | No transaction |
| Invoice a credit memo against an order for a previously invoiced stock item | The Income account specified at the warehouse, product, category, or inventory system setup level | The Accounts Receivable account defined on the AR/Cash Default Accounts window |
| The Inventory account specified at the warehouse, product, category, or inventory system setup level | The Cost of Goods Sold account specified at the warehouse, product, category, or inventory system setup level |