Accounting entries for Receivables

Accounting entries for Receivables

Below are Transaction Accounts that will affect for Transaction like Invoices and Credit Memos

Invoices

When you create a regular invoice through the Transactions window,

Receivables creates the following journal entry:

Receivables a/c Dr

To  Revenue       a/c

To Tax (if you charge tax) a/c

To Freight (if you charge freight a/c

Credit Memos

When you credit an invoice, debit memo, or charge back through the

Credit Transactions window, Receivables creates the following journal

entry:

Revenue a/c Dr

Tax (if you credit tax) a/c Dr

Freight (if you credit freight) a/c Dr

To Receivables (Credit Memo) a/c

Receivables a/c Dr (Credit Memo)

To Receivables  a/c (Invoice)

Receipts Accounting:

In the case of Receipt, entries will vary depending upon the status of the Receipt whether its Applied, Unapplied, Applied On-Account the transaction entries will hit different accounts. The Accounts are defaulted based on Payment method

(Receipt Class) and Remittance Bank selected when you enter the receipt.

When you enter a receipt and its Unapplied, Receivables creates the following journal entries:

Cash a/c Dr

To Unapplied Cash a/c

while apply a receipt to an invoice, Receivables creates the following journal entry:

Cash a/c Dr

Unapplied Cash a/c Dr

To Unapplied Cash a/c

To Receivables a/c

while enter an unidentified receipt, Receivables creates the following journal entry:

Cash a/c Dr

To Unidentified a/c

while enter an on– account receipt, Receivables creates the following journal entry:

Cash a/c Dr

To Unapplied a/c

Unapplied a/c Dr

To On–Account a/c

 Receipt includes a discount, Receivables creates the following journal entry:

Receivables a/c Dr

To Revenue a/c

Cash a/c Dr

To Receivables a/c

Earned/Unearned Discount a/c Dr

To Receivables a/c

At Receipt Class the Remittance and Clearance method is set as Standard and By Matching

Enter the Receipt the entry hits Receipt Confirmation with status of receipt as Confirmed

Receipt Confirmation a/c dr

To Receivables a/c

Once the receipt is remitted and status becomes "Remitted"

Remittance a/c Dr

To Receipt Confirmation a/c

Once receipt is cleared

 Cash a/c Dr

To Remittance a/c

Share on Facebook Share on Twitter Share on Google Plus

About RAMESH

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.