Sales Journal Entries | Zayls

by Angelica San Juan
6 months ago
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Sales Journal Entries

Users can check on the journal entries in different transactions by selecting the Journal tab.

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SALES ORDERS

No journal entries are created in Sales Orders since there are no movements yet in relation to inventory or cash.

DELIVERIES

The journal entry will record the current inventory cost of the product. Inventory cost is computed using the Weighted Average Method.

Journal Entry:

  • Dr Cost of Goods Sold

  • Cr Inventory (selected during the creation of product)

INVOICES

The journal entry will depend if there is a Tax or not. If there is Tax then the corresponding account for Tax will be included in the journal entries.

Journal Entry:

  • Dr Accounts Receivable

  • Cr Sales (depends on the tax type, can be Sales – VATable, Sales – VAT Exempt, Sales – Zero Rated, or Sales – Government)

  • Cr Output VAT

COLLECTIONS

The journal entry for collections normally includes Undeposited Funds and Accounts Receivable if there are no Expanded Withholding Tax, Additions, or Deductions. Corresponding accounts will be included for them if they are in the collections.

Journal Entry:

  • Dr Undeposited Funds (Zayls has a Deposit module to transfer this to a specific Cash In Bank account)

  • Dr Deductions (account)

  • Dr Creditable Withholding Tax

  • Dr Final Withholding Tax

  • Dr Customer Deposits

  • Dr Sales Refund (for Sales Returns)

  • Cr Accounts Receivable

  • Cr Additions (account)

In Zayls, there is a field wherein the suggested CWT (auto-computed) is shown. The computation is based on the net of VAT total sales – net of VAT returns. However, users are still free to edit the amount (in case of special cases in the computation of CWT).

RETAIL SALES INVOICE

The usual accounts are undeposited funds, cost of goods sold, sales, output VAT, and inventory, however, if there are returns, deposits, additions, and deductions, corresponding accounts are included.

Journal Entry:

  • Dr Undeposited Funds (Zayls has a Deposit module to transfer this to a specific Cash In Bank account)

  • Dr Cost of Goods Sold

  • Dr Customer Deposit

  • Dr Sales Refund (for Sales Return deduction)

  • Dr Deductions (account)

  • Cr Additions (account)

  • Cr Sales (depends on the tax type, can be Sales – VATable, Sales – VAT Exempt, Sales – Zero Rated, or Sales – Government)

  • Cr Output VAT

  • Cr Inventory (selected during the creation of product)

SALES RETURNS

The journal entry for sales returns will differ depending on whether the product will be restocked.

Journal Entry (restock):

  • Dr Sales Return (contra-sales account)

  • Dr Output VAT

  • Dr Inventory (selected during the creation of product)

  • Cr Sales Refund (to be countered by Sales Refund transaction or when used in another Invoice/Collection)

  • Cr Cost of Goods Sold

Journal Entry (not restock):

  • Dr Sales Return (contra-sales account)

  • Dr Output VAT

  • Dr Loss on Inventory

  • Cr Sales Refund (to be countered by Sales Refund transaction or when used in another Invoice/Collection)

  • Cr Cost of Goods Sold

SALES REFUNDS

Entries for sales refund will depend if the customer account has withholding tax or not.

Journal Entry:

  • Dr Sales Refund

  • Cr Creditable Withholding Tax

  • Cr Cash In Bank (specific account selected in the Bank Account)

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