Receivables & Collections

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    PK
    Cash/Counter sales invoice processing
    Topic posted September 2, 2019 by PKRed Ribbon: 250+ Points, tagged Cash Management, Configuration, Financials, Receivables, Subscriptions, User Interface 
    42 Views, 7 Comments
    Title:
    Cash/Counter sales invoice processing
    Summary:
    Cash/Counter sales invoice processing
    Content:

    In our retail segment of business we have direct(without any delivery order or sales order) cash and counter sales from the showroom. We don't maintain any customer master in the system for counter sale . we have on an average 1000 customer invoices per day . so it is difficult for our data entry operator to enter all the details which is required for creating manual customer invoices and create invoices. Also upon sale, inventory should get reduced automatically.

    Any ideas, suggestion on how other companies are managing/doing this.

    Thanks!

     

     

    Comment

     

    • Julien Dubouis

      Hi PK,
      I usually see two workarounds:

      - first one is using a taxable journal, that will take into account the revenues generated by these point of sales but will not impact your inventory if you use OM.

      - second one is using a generic customer, assuming that all payments are done in the showroom and there is no risk of customer balance on these transactions.

      Both of these transactions can be interfaced. 
      Thanks

      • PK

        Thanks a lot for your response Julien. second option seems to be fit for our business. Could you please elaborate(Or if we have sample cases where we have performed this . it will be really helpful) little more on this like do we need to create some forms where data entry operator will input the data, and later it will be interfaced to receivables. as our operators don't have much accounting knowledge so we would restrict them to enter minimal data only like item, quantity and price. and rest of the things,required for accounting and customer invoice creation , shall get auto populated. Thanks much again!

    • Praveen T

      Hi PK,

      Request you to clarify the below point.

      Do you have any POS ( Point of sale) system to record this transaction. Currently, How is this being handled..

       

      Regards

      Praveen

      • PK

        Thanks for your response Praveen.

        Below is the process:

        1. Customer visit our showroom and select the item to be purchased.
        2. Based on that the showroom sales person will open the cash memo screen in legacy system.
        3. On Cash memo screen he will select the item to be sold, Qty. The price will be picked automatically for list price in which discount can be given by sales person based on approvals. There is no option to reduce the list price, but the sales person can increase the list price. Also, customer field is not mandatory, but he can enter the name of customer.
        4. Once this is saved system will generate the cash memo documents with details of item, price and qty.

        At back end there will be 2 entries will be posted

         

        1. Cash Control A/C   DR         XXXX

        Revenue A/CCRXXXX

         

        1.  COGS A/C            DR            XXXX

        Inventory A/CCRXXXX

         

        1. Once the cash is receipt is deposited in bank, we pass the below entry in system

        Bank       A/C           DR     XXXX

        Cash Control A/C   CR     XXXX

         

        We ensure that the cash control account is Zero at every month end.

    • Praveen T

      Hi PK,

       

      Thanks. Going forward, are you planning to replace the POS system and  capture these details in cloud financials or you wanted to retain the POS system and interface the entries to oracle? Can you please clarify this.

       

      Regards

      Praveen

       

      • PK

        Thanks for quick response Praveen. We are planning to replace the POS system and  capture these all details in cloud financials.

    • Praveen T

      Hi PK, 

      Thanks for the details. This can be handled in 3  ways.Please review and let me know your inputs. I am trying to give you a holistic picture considering this requirement.

      Option 1

      Create a generic customer and create a transaction type ( Define a transaction Type without any updation to AR  and only GL Accounting is enabled). You record the sales using this customer and ensure that accounting defaulted in the below manner ( Cash A/C Dr to Revenue A/C). At line level, you select the item and qty  which is being sold so that item sold is being tracked. In this option, this will not update AR balance. But required entries will get transferred to GL.

      Develop BI/OTBI report which will list down the transaction numbers, Inventory items sold and quantity sold. Use this report as a base to create a Misc. Transaction in Inventory to reduce the inventory balance and debit the proper accounting. You can check whether FBDI templates are available so that you can copy paste the information and upload the details to inventory module.

      Accounting Entry- Dr Cogs A/C  Cr Inventory A/C

       

      Option 2

      Create a generic customer and create a normal transaction type .You record the sales using this customer and ensure that accounting defaulted in the below manner ( Receivable A/C Dr to Revenue A/C). At line level, you select the item and qty  which is being sold so that item sold is being tracked. 

      Run a report which will provide the transaction details of this particular transaction at the EOD. Based on this report, create one consolidated receipt in AR to generate the below accounting.

      Dr Cash A/C - Cr Receivables A/C

      Develop BI/OTBI report which will list down the transaction numbers, Inventory items sold and quantity sold. Use this report as a base to create a Misc. Transaction in Inventory to reduce the inventory balance and debit the proper accounting. You can check whether FBDI templates are available so that you can copy paste the information and upload the details to inventory module.

      Accounting Entry- Dr Cogs A/C  Cr Inventory A/C

       

      Option 3

      Create  a misc receipt and ensure the accounting in the below manner identified by a unique receivable activity.

      Dr Cash A/C--  Cr Revenue A/c ( Capture additional information like customer Name/Item Number/Code, Qty sold through DFF information)

      Generate a report on daily basis for the above receivable activity with item code, Quantity details etc. Use this report as base and create Misc. transaction in the inventory module for inventory depletion.

      Dr Cogs A/C Cr Inventory A/C

       

      Regards

      Praveen