Overview
The primary reason of handling Accounts is to generate the Balance Sheet and to know the Profit/Loss and the cash flow of the business. Accounting mainly consists of Receivables, Payables and Journal JVs.
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Accounting
Chart of Accounts
Chart of Accounts is usually maintained with four levels of grouping. There is an option to extend it upto ten levels of grouping based on the company requirement.
Level 1 : Accounts Header
Level 2 : Accounts Sub header
Level 3 : Accounts Detail
Level 4 : Cost Center
Payables
Whenever a credit purchase is made, we will credit the Supplier and the amount will come under Payables part of Accounting. Purchase Return will also comes under Payables.
Receivables
On the other side, whenever a credit sale is done by the Customer, we will debit the Customer and the relevant amount will come under Receivables part under Accounting. Sales Return will also comes under Receivables.
Receipt Voucher
Whenever a credit sale is done by the Customer, Customer is debited and the goods are delivered to the Customer. At later stage, whenever cash /cheque is received from Customer, then we will credit customer and debit cash/bank. Customer account is credited on two ways.
Invoice by Invoice Matching: Based on the Invoices value. (Optional) Total Credit Value: Based on the total credit value of the Customer. Invoices to be Matched (Optional) RECEIPT VOUCHER DEBIT Bank / Cash CREDIT Customers If it is received from Customers.
Payment Voucher
Whenever a credit purchase is done from the Supplier, Supplier is credited and the goods are received from the supplier. At later stage, whenever cash /cheque is paid to the Supplier, then we will debit Supplier and credit cash/bank. Supplier account is debited on two ways. Invoice by Invoice Matching: Based on the Invoices value. (Optional) Total Credit Value: Based on the total credit value to the Supplier.
Purchase Voucher and General JV’s
Debit note will be issued to Suppliers for Purchase Return and other related debit. Credit note will be issued to Customers for Invoice return and other related credits. All the other transactions like Salary expenses, Exchange rate variance entries will come under General JVs.
