12 May 2012

what are the accounting entries which get affected in order to cash cycle


For Order to Cash Entries.


Step 1:    Sales order creation -  No entries


Step 2:    Pick release :  Inventory Stage A/c Dr
                           To Inventory Finished goods a/c  

Step 3:   Ship confirm :   Cogs A/c Dr
                           Inventory Organization A/c.


Step 4:  In Receviable :  Receviable A/c dr
                          To Revenue A/c
                          To Tax 
                          To Freight
step 5:  When the reciept is not applied to the transaction

Unbilled receivabels a/c dr
to receivables a/c   cr

Step 6:    Cash           :  Cash A/c Dr
                             Receivable A/c cr

2 comments:

Steve K said...

In your title, "what are the accounting entries which get effected in order to cash cycle", "effected" should be "affected".

Kiran Killamsetty said...

Thanks .. updated.