Shipped orders for each product are batched into Order Batches. When making a batch, the user creates a view of the orders to batch. The view criteria usually define an Order Status of Shipped and an Order Date no later than the last date being batched. Placing a limit on the start date of the batch is not recommended because this can cause transactions that may have been excluded from previous batch periods to be overlooked. The Batch wizard automatically excludes records from the current batch that are not shipped or that have already been included in other batches.
This section shows an example of two orders and how they are batched. In most real-world scenarios, a batch would be made up of a large number of source transactions. For simplicity, the batch in this example includes only two orders.
The first order in the example is for a product with a price of $10.
GL Entries for Order ID 100:
Account |
Debit |
Credit |
Accounts Receivable |
$10.00 |
|
Sales |
|
$10.00 |
The second order in the example is for a different product with a price of $20. This product requires inventory and calculates Cost of Goods Sold (COGS).
GL Entries for Order ID 101:
Account |
Debit |
Credit |
Accounts Receivable |
$20.00 |
|
Sales |
|
$20.00 |
COGS |
$15.00 |
|
Inventory |
|
$15.00 |
When orders are batched, the GL entry information is aggregated per GL account. In other words, if one A/R account has a debit entry for each of the orders in the batch, the batch contains a single line for that A/R account, listing the total of those order debits added together. The following example shows GL entries for an order batch that contains only Orders 100 and 101.
GL Entries for Order Batch ID 299:
Account |
Debit |
Credit |
Accounts Receivable |
$30.00 |
|
Sales |
|
$30.00 |
COGS |
$15.00 |
|
Inventory |
|
$15.00 |
The batch GL entries have one line for each GL account with at least one entry in the orders. The amounts from each order are aggregated.
Related Topics
Managing Accounting and Financial Systems Integration
Understanding Accounting and Financial Systems Integration
Managing General Ledger Accounts
Determining GL Accounts for Order, Payment, and Scheduled Transactions
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