Sales of Non-Stock Items with Shipping: Generated Transactions
To be able to process a sale of non-stock items, you create and process a sales order. The following sections describe the GL transactions generated during the processing of the documents for a sale of non-stock items.
Transactions Generated for a Sales Invoice
When you create and release a sales invoice with one line with a non-stock item, the system generates the following general ledger transactions.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable account | Customer | Amount | 0.00 |
| Sales account | Depends on the settings of the order type on the Order Types (SO201000) form | 0.00 | Amount |
You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices (SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.
If your company sells non-stock items, it may want to recognize the expense for these items when they are sold to accurately calculate revenue or for accounting purposes. To do this, you need to select Sales in the Post Cost to Expenses On box on the Non-Stock Items (IN202000) form for the non-stock item. When the item is sold, on release of a sales invoice additional transactions are added to the batch and the following transactions are generated.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable account | Customer | Amount | 0.00 |
| Sales Revenue account | Depends on the settings of the order type on the Order Types (SO201000) form | 0.00 | Amount |
| Expense Accrual account | Depends on the settings of the posting class of the item specified on the Posting Classes (IN206000) form) | 0.00 | Amount |
| COGS account | Depends on the settings of the posting class of the item specified on the Posting Classes (IN206000) form) | Amount | 0.00 |