Accounting Use Cases
Invoice Creation
What happens when you add an Invoice.
1. Regular Product Purchase
DR: A/R from Price
- CR: Revenue from Price
2. Deferred Product Purchase
DR: A/R from Price
- CR: Deferred Revenue from Price
3. One Time Deferred Product Purchase in or after period of recognition
DR: A/R from Price
- CR: Revenue from Price
4. Product Purchase with Split Revenue
DR: A/R from Price
- CR: Revenue1 from Price Split
- CR: Revenue2 from Price Split
- CR: RevenueN from Price Split
5. Product Purchase with Split Revenue and Price Override
DR: A/R from Price
- CR: Revenue1 from Price Split for percentage of price based on split
- CR: Revenue2 from Price Split for percentage of price based on split
- CR: RevenueN from Price Split for percentage of price based on split
6. Product Purchase with Discount
Create journal entry based on scenario above
For the discount portion
DR: Revenue (Expense) from Discount Price
- CR: A/R from price being discounted
Discount must come from same business unit as item being discounted.
Payment Creation
1. Regular Payment
DR: Cash from Payment Method
- CR: A/R from Ledger or Price of product being paid
2. Use Credit Payment
DR: Credit account from credit transaction
- CR: A/R from Ledger or Price of product being paid
3. Write Off
DR: Bad Debt Account from Price
- CR: A/R from Ledger or Price of product being paid
4. Overpayment (credit created)
DR: Cash from Payment Method
- CR: Overpayment account from business unit of batch
5. Underpayment (system option defined with a value>0)
DR: Write off account from Price of product being paid
- CR: A/R from Ledger or Price of product being paid
6. Multi-Company Payment
DR: Cash account from payment method
DR: Due from account for the company not receiving cash
- CR: A/R account from Ledger or Price of product paid
- CR: Due to account for the company that received the payment
7. Multi-Company Credit Application
DR: Credit account from original credit memo (company 2)
DR: Due from company 2 account for company 1
- CR: A/R account from Ledger or Price of product paid (company 1)
- CR: Due to company 1 account for company 2
Cancellation
1. Cancel full amount of a fully paid invoice, creating a credit for the paid amount
DR: Return Account from Price
- CR: Liability Account from Price
2. Cancel full amount of unpaid invoice
DR: Return Account from Price
- CR: A/R from Ledger or Price of product being cancelled
3. Cancel full amount of partially paid invoice, creating credit for paid amount
DR: Return Account from Price for unpaid portion
- CR: A/R from Ledger or Price of product being cancelled for unpaid portion
DR: Return Account from Price for paid portion
- CR: Liability Account from Price for paid portion
4. Cancel a fully paid invoice with partial credit
DR: Return Account from Price for amount being credited
- CR: Liability Account from Price for amount being credited
5. Cancel a partially paid invoice with partial credit
DR: Return Account from Price for unpaid portion
- CR: A/R from Ledger or Price of product being cancelled for unpaid portion
DR: Return Account from Price for portion of paid portion being credited
- CR: Liability Account from Price for portion of paid portion being credited
6. Cancel a fully paid deferred invoice, creating credit for unrecognized amount (default)
DR: Deferred Revenue from Ledger for unrecognized balance
- CR: Liability Account from Price for unrecognized balance
7. Cancel an unpaid deferred invoice
DR: Deferred Revenue from Ledger for unrecognized balance
- CR: A/R from Ledger for unrecognized balance
8. Cancel an unpaid deferred invoice and write off balance
DR: Deferred Revenue from Ledger for unrecognized balance
- CR: A/R from Ledger for unrecognized balance
DR: Bad Debt from Price for recognized portion
- CR: A/R from Ledger for recognized portion
9. Cancel a partially paid deferred invoice where paid amount is greater than recognized amount
DR: Deferred Revenue from Ledger for unpaid unrecognized portion
- CR: A/R from Ledger for unpaid unrecognized portion
DR: Deferred Revenue from Ledger for paid unrecognized portion
- CR: Liability from Price for paid unrecognized portion
10. Cancel a partially paid deferred invoice where paid amount is less than recognized amount, write off balance
DR: Deferred Revenue from Ledger for unpaid unrecognized portion
- CR: A/R from Ledger for unpaid unrecognized portion
DR: Bad Debt from Price for unpaid recognized portion
- CR: A/R from Ledger for unpaid recognized portion
11. Cancel a fully paid deferred invoice with a credit for more than the unrecognized portion
DR: Deferred Revenue from Ledger for unrecognized portion
DR: Return Account from Price for recognized portion of credit amount
- CR: Liability from Price for full amount of credit
12. Cancel a fully paid deferred invoice with a credit for less than the unrecognized portion
DR: Deferred Revenue from Ledger for unrecognized portion
- CR: Liability from Price for amount of credit
- CR: Revenue from Price for amount of unrecognized portion not being credited
13. Cancel a partially paid deferred invoice with a credit for more than the paid, unrecognized portion (payment amount is greater than the recognized amount)
DR: Deferred Revenue from Ledger for amount of unpaid, unrecognized portion
- CR: A/R from Ledger for amount of unpaid, unrecognized portion
DR: Deferred Revenue from Ledger for remainder of unrecognized portion.
DR: Return Account for the difference in the amount of credit and the balance in deferred revenue
- CR: Liability from Price for amount of credit
14. Cancel a partially paid deferred invoice with a credit for less than the paid, unrecognized portion (payment amount is greater than the recognized amount)
DR: Deferred Revenue from Ledger for amount of unpaid, unrecognized portion
- CR: A/R from Ledger for amount of unpaid, unrecognized portion
DR: Deferred Revenue from Ledger for remainder of unrecognized portion.
- CR: Liability from Price for amount of credit
- CR: Revenue Account for the difference in the amount of credit and the balance in deferred revenue
15. Cancel a fully paid deferred invoice and not give a credit
DR: Deferred Revenue from Ledger for unrecognized portion
- CR: Revenue from Price for unrecognized portion
16. Cancel a partially paid deferred invoice and not give a credit
DR: Deferred Revenue from Ledger for unpaid, unrecognized portion
- CR: A/R for unpaid unrecognized portion
DR: Deferred Revenue from Ledger for paid, unrecognized portion
- CR: Revenue from Price for paid, unrecognized portion.
17. Cancel a fully paid split revenue product with full credit
DR: Return1 from Price for original amount
DR: Return2 from Price for original amount
DR: ReturnN from Price for original amount
- CR: Liability1 from Price for amount of Return1
- CR: Liability2 from Price for amount of Return2
- CR: LiabilityN from Price for amount of ReturnN
18. Cancel a fully paid split revenue product with less than full credit
DR: Return1 from Price for percentage of original amount based on amount credited
DR: Return2 from Price for percentage of original amount based on amount credited
DR: ReturnN from Price for percentage of original amount based on amount credited
- CR: Liability1 from Price for amount of Return1
- CR: Liability2 from Price for amount of Return2
- CR: LiabilityN from Price for amount of ReturnN
19. Cancel an unpaid split revenue product
DR: Return1 from Price for original amount
DR: Return2 from Price for original amount
DR: ReturnN from Price for original amount
- CR: A/R from Ledger or Price of product being cancelled
20. Cancel a partially paid split revenue product for full credit
DR: Return1 from Price for cancellation amount
DR: Return2 from Price for cancellation amount
DR: ReturnN from Price for cancellation amount
- CR: Liability1 from Price for amount of Return1
- CR: Liability2 from Price for amount of Return2
- CR: LiabilityN from Price for amount of ReturnN
21. Cancel a partially paid split revenue product for partial credit
DR: Return1 from Price for percentage of original amount based on amount credited
DR: Return2 from Price for percentage of original amount based on amount credited
DR: ReturnN from Price for percentage of original amount based on amount credited
- CR: Liability1 from Price for amount of Return1
- CR: Liability2 from Price for amount of Return2
- CR: LiabilityN from Price for amount of ReturnN
Credits
Users will select their own accounts when manually creating credits
Refunds
DR: Credit Account from Credit being Refunded
- CR: Account selected on refund form
Miscellaneous Transactions
Users will select their own accounts when creating miscellaneous transactions
Adjustments (Voids)
1. Any non-deferred invoice
DR: Credit Account(s) from original transaction
| CR: Debit Account(s) from original transaction |
2. Deferred Invoice
DR: Deferred Revenue from Ledger for unrecognized portion
DR: Revenue for amount recognized
- CR: A/R from Ledger for amount of invoice