cancel
Showing results for 
Search instead for 
Did you mean: 

Chart Of Account

Former Member
0 Kudos
57

When we create A/R Invoice then Customer Account Debited And Product Account(Which is going to sale) Credited. In witch transaction product Account will be debited.

View Entire Topic
lorna_real
Active Participant
0 Kudos

Hello Om Singh,

When an A/R Invoice is created independently, the journal entry is as follows:

Dr. Accounts Receivable (from BP Master Data)

Cr. Revenue

Dr. Cost of Sales

Cr. Inventory

The Revenue, Cost of Sales and Inventory accounts may come from Item Group, Item Level or Item Warehouse depending on your set up in the Item Master Data -> Stock Data tab.

When an A/R Invoice is created based on a Delivery Order, the journal entry will be the sales portion which is:

Dr. Accounts Receivable (from BP Master Data)

Cr. Revenue

This is because the cost portion has been posted in the Delivery Order.

I hope the above helps.

Regards,

Lorna Real