Account Receivable Accounting (AR)

 

                                                 RECEIVABLES

O2C ENTRIES:

Pick Release:

Receiving Inventory ---- Dr

Item Expense/Material ac ---- Cr

Ship Confirmation:

COGS ---- Dr----It will pick from Inv Information

Receiving Inv (Sub-Inv) ---- Cr

While Creating Transaction:

Receivable ---- Dr

Revenue ------- Cr

Freight --------Cr

Tax -------------Cr

While Recording Receipt: WHEN STATE IS CONFIRMED

Confirmed Cash--------------Dr

Receivables ----Cr

When Remitted: WHEN STATE IS REMITTED

Remitted Cash ---- Dr

Confirmed Cash--------Cr

When Reconciled: WHEN STATE IS CLEARED

Cash -------Dr

Remitted Cash --- Cr

DEPOSIT ACCOUNTING ENTRY:

When we create DEPOSIT invoice the accounting entry would be:

Receivable --- Dr

Accrual (Unearned Revenue) -------- Cr

When we create Sales Invoice:

Receivable---Dr

Revenue----- Cr

When Deposit adjusts with actual transaction invoice the entry would be:

Unearned Rev (Accrual) -----Dr

Receivables-------Cr

GAURANTEE ACCOUNTING ENTRY:

When we crate Guarantee transaction:

Unbilled receivable----Dr

Unearned Revenue ---Cr

When we create sales Invoice:

Receivable ----Dr

Revenue -------Cr

When Guarantee transaction adjusts with sales invoice:

Unearned Revenue ---Dr

Unbilled Receivable—Cr

 

 

REVENUE RECOGNISATION:

INVOICE ADVANCE:

When we create sales invoice and set invoicing rule as INADVANCE(FIXED SCH):

Receivables ---- Dr

Unearned Revenue -------- Cr

Once we recognize the Revenue the accounting entry would be:

Unearned Revenue ---- Dr

Revenue------------------Cr

And the final entry would be:

Receivable ------Dr

Revenue ---------Cr

INVOICE ARREARS:

REVENUE RECOGNISATION using Invoice Arrears Schedule:

Unbilled Receivables—Dr

Revenue-----------------Cr

 

Once we have billed the customer

Receivables---------------Dr

Unbilled Receivables--Cr

ONACCOUNT ACCOUNTING ENTRY:

When we created the Receipt and applied to OnAccount :

Cash ---Dr

Receivables ----CR, ONACCOUNT -----Cr

CUSTOMER REFUND ACCOUNTING ENTRY :

When we release the On account and Refund the Amount:

Cash ----Dr

Receivables----Cr

On Account Cash ---Cr

Unapplied Cash -----Dr

Refund----------------Cr