Table of Contents
Sales Return - Local
- Approve
- POST to GL
- Settlement
APPROVE (Sales Return - Local)
When a local sales return is approved, the Trade debtor – control A/C's sub account's credit available will be added the returned amount.
POST (Sales Return - Local)
When a Local Sales Return is posted to GL, the following accounting entries are created.
| GL Interface Type/[Account] | Account Usage | Sub-account | Currency | Dr | Cr | Notes |
|---|---|---|---|---|---|---|
| STOCK IN HAND | Ledger | Prime | Actual Cost | |||
| COST OF SALES | Ledger | Prime | Standard Cost | |||
| COMMISSION PAID | Ledger | Prime | (SalesPrice-Discount)*Commission%/100 | |||
| SALES DISCOUNT | Ledger | Prime | Discount | |||
| SALES | Ledger | Prime | SalesPrice | |||
| GST-OUTPUT TAX (Sales) | Tax | Prime | (SalesPrice-Discount)*Tax Rate/100 | |||
| TRADE DEBTOR - CONTROL A/C | AR | Customer - Account | Prime | (SalesPrice-Discount) + Tax | ||
| COST OF SALES variance | Ledger | Prime | Standard cost - Actual cost | If actual price is less than the standard price, then cost of sales variance is CR | ||
| TRADE CREDITORS- CONTROL A/C | AP | Supplier - Account | Prime | (SalesPrice-Discount)*Commission%/100 |
SETTLEMENT Sales Return - Local
Once the sales return is settled, Trade debtor – control A/C's sub account's credit available will deduct the settled amount of money and the following accounting entries are created.
| GL Interface Type/[Account] | Account Usage | Sub-account | Currency | Dr | Cr | Notes |
|---|---|---|---|---|---|---|
| CASH AT BANK | Bank | Prime | (SalesPrice-Discount) + Tax | |||
| TRADE DEBTOR - CONTROL A/C | AR | Customer Account | Prime | (SalesPrice-Discount) + Tax |
Examples
Local Sales: Say, SalesPrice=SGD150 Discount=SGD3.00, Customer=CUS-000001, Commission=2%, Agent=SUP-000001. Stock Item StandardCost=SGD100.00, ActualCost=SGD90.00 and TaxRate=7%
1. APPROVE (Sales Return - Local)
After approving the local sales return, customer credit available will get SGD157.29 amount.
2. POST Sales Return - Local
After posting the sales return, the generated vouchers will contain:
| GL Interface Type | Sub-account | Currency | PrimeDr | PrimeCr | BaseDr | BaseCr | Notes |
|---|---|---|---|---|---|---|---|
| STOCK IN HAND | SGD | 90 | 90 | ||||
| COST OF SALES | SGD | 100 | 100 | ||||
| COMMISSION PAID | SGD | (150-3)*2/100 = 2.94 | 2.94 | ||||
| SALES DISCOUNT | SGD | 3 | 3 | ||||
| SALES | SGD | 150 | 150 | ||||
| GST-OUTPUT TAX (Sales) | SGD | (150-3)*7/100 = 10.29 | 10.29 | ||||
| TRADE DEBTOR - CONTROL A/C | CUS-000001 | SGD | (150-3)+10.29 = 157.29 | 157.29 | |||
| COST OF SALES variance | SGD | 100-90 = 10 | 10 | ||||
| TRADE CREDITORS- CONTROL A/C | SUP-000001 | SGD | (150-3)*2/100 = 2.94 | 2.94 | |||
| Totals | 263.23 | 263.23 |
3. SETTLEMENT Sales Return - Local
Once the sales return is settled, customer credit available will loss SGD157.29 amount, and the generated vouchers will contain:
| GL Interface Type | Sub Account | Currency | PrimeDr | PrimeCr | BaseDr | BaseCr | Notes |
|---|---|---|---|---|---|---|---|
| CASH AT BANK | SGD | (150-3)+10.29 = 157.29 | 157.29 | ||||
| TRADE DEBTOR - CONTROL A/C | CUS-000001 | SGD | (150-3)+10.29 = 157.29 | 157.29 | |||
| Totals | 157.29 | 157.29 |
