Taxable Sales with Freight Charges: Generated Transactions
As you process a taxable sale with freight charges, you create and process a sales order, a shipment, and an AR invoice. To track the movements of items and update the customer's balance, the system generates the GL transactions described in the following sections.
Transaction Generated for an Inventory Document
When you create and release a shipment, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| COGS account | The COGS account of the stock item specified on the Stock Items (IN202500) form | Amount | 0.00 |
| Inventory Asset account | The inventory account of the warehouse from which the stock item was shipped, specified on the Item Warehouse Details (IN204500) form | 0.00 | Amount |
You can view the reference number of the GL batch on the Financial tab of the Issues (IN302000) form.
Transaction Generated for an AR Invoice
When you prepare and release an AR invoice for a sales order, the system generates the following general ledger transaction:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable account | The AR account of the customer, specified on the Customers (AR303000) form | Amount + freight charge amount + tax amount | 0.00 |
| Sales account | The Sales account of the stock item specified on the Stock Items (IN202500) form | 0.00 | Amount |
| Freight account | The Freight Sales Account specified for the ship via code on the Ship via Codes (CS207500) form | 0.00 | Freight charge amount |
| Tax Payable account | The Tax Payable account of the tax applied to the sales order, specified on the Taxes (TX205000) form | 0.00 | Tax amount |
You can view the reference number of the GL batch on the Financial tab of the Invoices and Memos (AR301000) form.