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Accounting Impact

This document outlines the accounting impacts of 6 stages of an order process: stage 3 debits an inventory staging account and credits a finished goods inventory account; stage 4 debits a cost of goods sold account and credits an inventory organization account; stage 5 debits an accounts receivable account, credits a revenue account and a tax account; stage 6 debits a cash account and credits an accounts receivable account.

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Rohit Daswani
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37 views2 pages

Accounting Impact

This document outlines the accounting impacts of 6 stages of an order process: stage 3 debits an inventory staging account and credits a finished goods inventory account; stage 4 debits a cost of goods sold account and credits an inventory organization account; stage 5 debits an accounts receivable account, credits a revenue account and a tax account; stage 6 debits a cash account and credits an accounts receivable account.

Uploaded by

Rohit Daswani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Accounting Impact

• Stage 1: Order entered


Impact : Nil
• Stage 2: Order Booked
Impact : Nil
• Stage 3: Pick Release
Inventory Staging A/c Dr.
To Inventory Finished Goods A/c
• Stage 4: Ship Confirm
COGS A/c Dr.
To Inventory Organization
• Stage 5: Invoice & Receipt Generation
Accounts Receivable A/c Dr.
To Revenue A/c
To Tax A/c
• Stage 6: Cash Payment
Cash A/c Dr.
To Accounts Receivable

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