1. The sales process in Costbucket
The sales process begins with the creation of a sales order. A sales order is not a final sale to the customer and can be saved, modified or deleted. Once a service or product is provided to the customer and ownership is transferred, the invoice can then be created.
To accomplish the above in Costbucket, log into the cloud cost accounting software, click on the left menu and navigate to sales, then create a sales order. Once the order is complete you will have the prompt to convert to an invoice.
Below are the accounting transactions that occur when processing a sales invoice.
General Ledger transaction to show that the invoice was created against a customer account.
- CR: Sales.
- CR: Sales tax payable.
- DR: Client Receivables account.
- General Ledger transaction to pay the invoice. Cash/Card transactions post to POS account.
- CR: Client Receivables account.
- DR: Bank account (POS Account if processed via the sales app).
- General Ledger transaction to transfer the inventory from the balance sheet to the income statement.
- CR: Finished Goods.
- DR: Cost of Sales.