Accounting entries - sales order

Dear Friend

Passing of an entry will take place only if the materials are shiped out to your customer.\ thro' sales invoice which will inturn has to reflect in Sales Ledger.

Customer Account Dr. (viz., xyz)

Sales a/c  Cr.

On realisation of money

Bank/Cash a/c Dr

Customer (xyz) Cr.

Even in Sales entry also you have to aportion segment wise viz., product value,taxes(if any),Freight then only U can able to analyse the total quantum of Sales at the end of the year

Dear Buddy,

1) Financial Accounting is generally historical in nature. Hence, you will book an entry when it take place or on due. Here, the commitment or action is only on completion of the sale. Therefore no entry to be passed for your I Queation.

2) II Qustion

a) If you receive the money before the sale - Bank A/c Dr,     To Party A/c

b) On completion of Sale Party A/c Dr.,       To Sales A/c

3)III Question

Personsal Accounts & Real Accounts are normally Balance Sheet Items. it is simple an account which denotes a person is Personal A/c. It may be the natural person or artificial person.

If a person receives the benefit Debit him.

If he gives the benefit then Credit him.

Hi!. I'm from Sri Lanka, I sell desserts to shops on Consignment basis as well as Online. The Accounting transactions for both vary.

For Online sales, I keep track of the Orders, So my JV entries are as follows:

Customer Dr 

Sales Order  Cr.

(this enables me to keep a track of Orders pending and executed) For Cancellation, the reverse entries are done.

When the Order is implemented:

Sales Order Dr

Sales/ Income -Cr

and when payment is received:

Cash / Bank Dr

Customer Cr.

If a Promotion was applied and a customer is given a certain discount, then:

Cash/Bank Dr (minus the discount)

Discount Allowed Dr. (the Discount amount)

Customer Cr (full Sales Value)

Search for accounts payables and receivables interview questions, you'll see an entry for requisition as well. That's odd but complete receivables and payments standard process in ERP book keeping.