Journal Entry Template
We almost scared to death when we try to process the client’s deposit and sales invoicing and got the funny numbers.
We spent the whole day trying to trace the mistake. It turned out that we typed AP (as in Accounts Payable) instead of AD (Advance and Deposits) on company default account setting.
In order to avoid any future mistake, we will institute a forced default account codes. That will be:
- AP Accounts Payable
- AD Advance and Deposits
- AR Accounts Receivable
- DR Disbursement Receivable
We hope that will make life better for all of us!
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Credit Memo
We are starting to work on issuing credit memo against the printed invoice.
This is different from writing-off or bad debt treatment of an existing invoice.
As a credit memo, it can be part of the invoice batch and it shares with the invoice numbering system.
For accounting treatment, only the net amount will be considered as sales.
Using credit memo to offset sales:
- DR Sales
- CR A/R
Using write-off to offset sales:
- DR Sales Discount
- CR A/R
