Page History: System Generated Double Entry
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Page Revision: Thu, 05 Jul 2012 10:24
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General Information
In the double-entry accounting system, each accounting entry records related pairs of financial transactions for asset, liability, income, expense, or capital accounts. Recording of a debit amount to one account and an equal credit amount to another account results in total debits being equal to total credits for all accounts in the general ledger. If the accounting entries are recorded without error, the aggregate balance of all accounts having positive balances will be equal to the aggregate balance of all accounts having negative balances. Accounting entries that debit and credit related accounts typically include the same date and identifying code in both accounts, so that in case of error, each debit and credit can be traced back to a journal and transaction source document, thus preserving an audit trail. The rules for formulating accounting entries are known as "Generally Accepted Accounting Principles". The accounting entries are recorded in the "Chart of Accounts". Regardless of which accounts and how many are impacted by a given transaction, the fundamental accounting equation A = L + OE will hold, i.e. assets equals liabilities plus owner's equity.
Receiving Inventory
Adjutant Entry Accounting EntryPurchase Order Received: Debit to the Inventory Account
Credit to the PO Clearing
Invoice for Purchase order: Debit PO Clearing
Credit Account Payable
Pay Invoice: Debit Accounts Payable
Credit Cash in bank account
The inputs are processed first.
For each Input,
Cost is removed from Item Control Account based on OHF, if no acct on OHF record, whse acct is used.
Cost is added to IC Clearing Acct based on OHF, if no acct on OHF record, whse acct is used.
Then Output are processed
For Each Output,
New Cost is added to Item Control Account based on OHF, if no acct on OHF record, whse acct is used.
New Cost is removed to IC Clearing Acct based on OHF, if no acct on OHF record, whse acct is used.
If whse acct is used, StkFlag is used to select Stk or NonStk Item Acct
The input cost will always equal the output cost, but they can end up in different acounts based on the types of items used/created
The suspense account is used when the GL tries to post something to an account that does not exist
Examples would be a blank account, a account created by the GL Group logic that does not exist, a account that was setup at one time,and was deleted etc…
Since the batches need to balance, everything has to post somewhere. If the account number cannot be found, the suspense account is used instead.
Everything that is in the that account should really have posted somewhere else, and should be moved to the correct account. You have to look at each entry, and find out where it should have gone, and move it there. Sometimes you have to create the missing account, sometimes you have to change the setup in Adjutant so make sure the correct account is used during the original posting process.
