Automatic Transactions from the AR & AP functions

If the General Ledger option is selected (Preference function, File menu), the AR & AP  function automatically generates the transactions associated to the billing processes and the recording of the payments.

Customer invoice

When an invoice associated to a customer is recorded, the following transactions are automatically entered in the journal [SD], defined on the Customer Category page,

- the corresponding account in the customer controlling account [C1] (corresponding to the customer category) is debited for the corresponding amount (taxes included),

- the discount receive account defined in the Sales journal is debited for the sales discount amount,

- the Sales accounts [A3] are credited for the duty free amounts (several accounts are credited if the invoice includes several lines corresponding to items that belong to different categories associated to different sales accounts),

- Accrued VAT accounts [T2] are credited for VAT amounts (several accounts are credited if the invoice includes several lines corresponding to items that belong to different categories associated to different Accrued VAT accounts).

Customer payment

When a customer payment is recorded, the following transactions are automatically entered in the journal [FD] defined at the level of the Payment Modes page,

- the corresponding account in the customer controlling account [C1] (corresponding to the customer category) is credited for the corresponding amount (taxes included),

- the counterpart liability account, defined in the financial journal [FD] is debited for the payment amount.

Vendor invoice

When an invoice from a vendor is recorded, the following transactions are automatically entered in the journal [PD] defined at the level of the vendor category page,

- the corresponding account in the vendor controlling account [V1] (corresponding to the vendor category) is credited for the corresponding amount (taxes included),

- the discount receive account defined in the Purchasing journal is debited for the sales discount amount,

- the purchasing accounts [A2] are debited for the duty free amounts (several accounts are debited if the invoice includes several lines corresponding to items that belong to different categories associated to different purchasing accounts),

- Accrued VAT accounts [T1] are debited for the VAT amounts (several accounts are credited if the invoice includes several lines corresponding to items that belong to different categories associated to different Accrued VAT accounts),

Vendor payment

When a vendor payment is recorded, the following transactions are automatically entered in the journal [FD] defined at the level of the Payment Modes page,

- the corresponding account in the vendor controlling account [V1] (corresponding to the customer category) is debited for the corresponding amount (taxes included),

- the counterpart liability account, defined in the financial journal [FD] is credited for the payment amount.