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General Ledger Transactions from Invoices

When you approve and save an Invoice, a General Ledger Transaction will be generated automatically if you have so determined in the Sub Systems setting in the General Ledger. An example is illustrated below:

For each row in an Invoice, the Sales Account will be chosen as follows:
  1. If the Customer has a Price List and there is a record in the Price register for the Item/Price List combination, the Sales Account will be taken from that Price record. If this Sales Account is blank, or there is no appropriate record in the Price register:

  2. The Sales Account will be taken from the relevant Item record (in the Item register). If this is blank:

  3. The Sales Account in the Account Usage A/R setting will be used.
In the cases of points 2 and 3, the relevant Sales Account for the Zone to which the Customer belongs will be used. There are three Zones (Local, Domestic and Export), and each can have a different Sales Account.

For each row in an Invoice, the Tax Account will be taken from the specified Tax Code. This will be chosen as follows:

  1. The Sales Tax Code in the record for the Customer in the Contact register will be used. If you have not specified a Sales Tax Code for the Customer in question:

  2. The Tax Code will be taken from the relevant Item record in the Item register. If this is blank, or if no Item Number has been entered to the Invoice row:

  3. The Tax Code in the Account Usage A/R setting will be used.
In the cases of points 2 and 3, the relevant Tax Code for the Zone to which the Customer belongs will be used. Each of the three Zones can have a different Tax Code.

The Debtor Account will be chosen as follows:

  1. The Debtor Account in the Customer Category to which the Customer belongs will be used. If you have not specified a Debtor Account in the relevant Category record, or the Customer does not belong to a Category:

  2. The Debtor Account will be taken from the Account Usage A/R setting.
If the Invoice is a Cash Note, the Cash Account in the relevant Payment Term record or in the Account Usage A/R setting will be used in place of the Debtor Account.

Once the Transaction has been generated, you can look at it straight away using the 'Open GL Transaction' function on the Operations drop-down menu.

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