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Sales Accounts in Sales Transactions

This page describes how Sales Accounts will be chosen and offered as defaults in sales transactions, including Quotations, Sales Orders and Sales Invoices.

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A Sales Account will be credited whenever you sell an Item, allowing you to record the levels of sales of different types of Items in the Nominal Ledger. Each time you sell an Item (i.e. whenever you specify an Item in a row in an Invoice, Order, Quotation or other sales transaction), a Sales Account for that sale will be placed in the A/C field on flip B of the sales transaction row. That Sales Account will be chosen as follows:

  1. In the special case of an Invoice created from a Service Order, the Sales Account will be the Service Invoiceable Sales A/C specified in the Item record or on the 'Service A/C' card of the Item Group to which the Item belongs (if you are not using the Use Item Groups for Cost Accounts option in the Cost Accounting setting in the Stock module), or from the Item Group or Item (if you are using that option). If there is no Service Invoiceable Sales A/C, then Sales Accounts in Invoices created from Service Orders will be chosen as described below but omitting points 2 and 6.

  2. If you are using the Use always option in the Payment Term Sales A/C setting, the Sales Account will be taken from the Payment Term.

  3. If the sales transaction has a Price List and there is a record in the Price register for the Item/Price List/Customer combination or in the Quantity Dependent Prices setting for the Item/Price List combination (depending on the Type of the Price List), the Sales Account will be taken from that Price or Quantity Dependent Price record.

  4. If you have specified a Sales Account for the Location in the Location Accounts setting in the Stock module, that Sales Account will be used.

  5. The Sales Account specified in the Item record will be used.

  6. If you are using the Use if no Account on Item option in the Payment Term Sales A/C setting, the Sales Account will be taken from the Payment Term.

  7. The Sales Account specified in the Item Group to which the Item belongs will be used.

  8. The Sales Account specified on the 'Sales' card in the Account Usage S/L setting will be used.
In the cases of points 4, 5, 7 and 8, the choice of Sales Account will depend on the VAT Zone of the Customer, which you should specify on the 'Company' card of the Contact record for the Customer.

You will be able to override the choice of Sales Account in an individual sales transaction row if necessary.

By default, the same Sales Accounts will be used in both Invoices and Credit Notes. If you would like to use different Sales Accounts in Credit Notes, select the Use Credit Sales Accounts option on the 'Debtors' card of the Account Usage S/L setting. Sales Accounts in Credit Notes will then be chosen as follows:

  1. They will be taken from the 'Credit A/C' card of the appropriate Item Group record.

  2. They will be taken from the 'Credit' card in the Account Usage S/L setting.
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