How is the purchase of goods posted into Accounting?

• You create a purchase order: nothing happens, accounting won't be touched
• You create a receiving note: inventory (debit) / inventory in transit (credit)
• You get billed for the goods: inventory in transit  (debit) / accounts payable (credit)
• You pay the bill: accounts payable (debit)  / bank (credit)
  

Please note: if you only create a bill directly or from conversion of a purchase order, the inventory accounts won't be touched. The bill will directly create an entry into your Cost of Goods sold in the P&L. To have inventory postings generated, you will need to have a receiving note involved!

 

How is the purchase of goods in expenses posted into Accounting?

You create an expense using the multi line tab and set up products into the lines:

• Cost of Goods sold (account that is set up in your product) in debit and Accounts payable (if you do not select a bank account yet) in credit
• As soon as you pay off the expense: Accounts payable in debit / bank in credit

 

How is the sale of goods posted into Accounting?

• You create a delivery note: Cost of Goods sold (debit) / inventory (credit)
• You issue an invoice for the goods sold: accounts receivable (debit) / sales (credit)
• You get paid for the invoice: bank (debit)  / accounts receivable (credit)
  
  

Please note: if you only create an invoice directly or from conversion of a sales order, the inventory accounts won't be touched. The invoice will directly create an entry into your sales in the P&L and not update any Cost of Goods sold. To have inventory postings generated, you will need to have a delivery note involved!

How is the sale of goods in sales receipts posted into Accounting?

You create a sales receipt using the multi line tab and set up products into the lines:

Your accounting will be:

• Accounts receivable / Sales (account that is set up in your product)
• Undeposîted funds / Accounts receivable (no bank selected yet, receipt not yet deposited)
• Bank / Undeposited Funds (after you selected a bank)

 

How are changes in the inventory count sheet posted into Accounting?

If you update your quantity:

• Stock increase would post: inventory (balance sheet) / inventory increase (P&L)
• Stock decrease would post: inventory shortage (P&L) / inventory (balance sheet)

If you update your WAP:

• Stock increase would post: inventory (balance sheet) / product cost (P&L)
• Stock decrease would post: product cost (P&L) / inventory (balance sheet)