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(Accounting) Invoicing of sales orders with SMS rebates

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The following describes the accounting transactions the system creates when you invoice an item with VAT and SMS rebate in system currency.

Prerequisites

Invoiced qty item 12
Sales price item 200.00
Cost price item 50.00
VAT item 17.5%
No discounts  
No fees  
Fixed SMS rebate item 10.00
Claim method R

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
820 Stock value Gross VAT   2400.00
Sales price * Quantity

200.00 * 12 = 2400.00
960 VAT output of order lines   420.00
(Sales value Gross VAT – Line discount VAT – Order discount VAT) * VAT percentage of VAT handling code

(2 400.00 – 0.00 – 0.00) * 0.175 = 420.00
800 Cost of goods sold 600.00  
Cost price * Quantity

50.00 * 12 = 600.00

If the cost type is:

  • Standard cost, the cost price is retrieved from the Standard cost field in the Item file
  • Average purchase cost, the cost price is retrieved from the Average cost field in the Item file
  • FIFO, the cost price is retrieved from the oldest active FIFO transaction in the FIFO file.
901 Stock value   600.00
Cost price * Quantity

50.00 * 12 = 600.00

The retrieval of the cost price is the same as described above for Cost of goods sold.
651 SMS A/R claim 120.00  
SMS rebate * Quantity

10.00 * 12 = 120.00

This is the SMS rebate to be claimed from the SMS rebate payer.
639 SMS COGS adj. Sales   120.00
SMS rebate * Quantity

10.00 * 12 = 120.00

This is the SMS cost of goods sold adjustment due to this SMS rebate for the item.
A/R To be accounted on Account Receivable 2820.00    

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