In this task you will enter financial transfer defaults settings. You will create a special non-stock item in your financial accounting system to handle the AR Invoice Transfer process.
Links:
Fnancial Transfer Guide – Financial Transfer Defaults
Screen Help - Financial Transfer Defaults
Video - Financial Transfer Defaults
Setup
Create a special non-stock item/non tax item in your outside accounting system with the Sales account designated as your AR Invoice Transfer Account. Designate this non-stock item in your Financial Transfer Defaults. Sales taxes and Purchase taxes are included in the voucher transfer values. Do not attempt to track tax details in your financial accounting system.
Transfer Overview
1.AR Vouchers are created in your accounting system by invoicing the special non stock item you created in your financial accounting system.
2.AP Vouchers are created in your accounting system by creating a supplier invoice to the AP Invoice Transfer account
3.The clearing accounts (AR Invoice Transfer and AP Invoice Transfer) are balanced out in the GL Summary Transfer process
GL Posting Specifications
SO Invoice – Revenue
Line Item Sale
Debit |
AR Invoice Transfer (Asset - 11150) |
Credit |
Sales – Products (Income – 40000 or Item Category Exception) |
Line Item Tax
Debit |
AR Invoice Transfer (Asset – 11150) Clearing Account |
Credit |
Sales Tax Payable (Liability - 21100) |
Shipping Descriptor / Freeform
Type |
SHIP |
Debit |
AR Invoice Transfer (Asset – 11150) |
Credit |
Shipping Income (Income - 42000) |
AR Voucher Process in Outside Accounting Program
•Create an invoice for the special non-stock item/non-tax item that you created in your outside accounting system as part of the financial transfer setup. This item should not have a tax code or tax detail against it.
•The non-stock item will be setup to credit the AR Invoice Transfer (Asset - 11150) account instead of a Sales account. The invoice debit will use your existing Accounts Receivable account.
•The debit values to the 11150 AR Invoice Transfer created during the DBA invoice process will be posted to the outside system as part of the GL summary transfer.
•The net effect is that the debit to the AR Invoice Transfer from the DBA invoice process will offset the credit for the AR Invoice Transfer voucher in your outside accounting system, thus leaving Accounts Receivable in your outside system for normal payment collection.
Line Item Sale - special non-stock item in outside system
Debit |
Accounts Receivable in outside system |
Credit |
AR Invoice Transfer (Asset - 11150) |
PO Invoice
Matched Line Item
Basis |
PO Receipt Cost |
Debit |
Received Not Invoiced (Liability - 20200) |
Credit |
AP Invoice Transfer (Liability - 20300) |
Line Item Tax
Basis |
Matched PO Line Tax |
Debit |
Purchase Tax (Expense - 61480 or Liability) |
Credit |
AP Invoice Transfer (Liability - 20300) |
SHIP Line Item
Basis |
PO Invoice Unit Price |
Debit |
PO Shipping Cost (Cost of Sales - 52500) |
Credit |
Received Not Invoiced (Liability - 20200) |
Debit |
Received Not Invoiced (Liability - 20200) |
Credit |
AP Invoice Transfer (Liability - 20300) |
AP Voucher Process (Supplier Bill) in Outside Accounting Program
•Create a supplier bill for the AP Voucher Invoice Transfer amount in your outside system. Do not attempt to add a sales tax code or tax detail against your supplier bill.
•The DBA credit values (AP Invoice Transfer - 20300) from the PO Invoice process in DBA will be posted to the outside system as part of the GL summary transfer.
•The net effect is that the credit to the AP Invoice Transfer from the DBA PO Invoice process will offset the debit to the AP Invoice Transfer supplier bill entry in your outside accounting system, thus leaving Accounts Payable in your outside system for normal payment processing.
Supplier Bill - created in outside accounting
Debit |
AP Invoice Transfer (Liability -20300) |
Credit |
Accounts Payable in outside system |
