Accounting Ch 04-Orders

An order is a stated intention by a customer to purchase goods and/or services from your company. Their purpose is to help keep track of what you've sold, and to whom, and to ensure that you are getting the right products or services to the right customers. Please refer to Chapter 11, Estimates, Orders, and Service Tickets in the Users Reference Manual to see more about this topic.

Lifecycle

In Control, orders are normally handled in one of two ways, a new order is created and processed, or an estimate is converted into an order. The steps that are followed to process the order will differ from store to store, so it's very likely your orders' lifecycle will be different in some ways.

Reports


A/R Aging Graph

This will be a graphical representation of your accounts receivable information in a bar and pie graph form. Information in the bar graph will be broken down by aging (current, 1-30 days, etc.) and amount due. Information in the pie graph will be broken down by customer's percentage of total amount due.
argraph.jpg
A/R Aging Graph



Heading - Company information, such as logo, address, phone, etc.
Report Name - Name of the report currently being viewed
Date Printed - When the report was printed
Bar Graph Information - Accounts Receivable information broken down by age
Pie Graph Information - Accounts Receivable information broken down by customer


GL Detail

Scenario:
You have an order for a print for $100 plus $10 in taxes from the Super Simple Company. It will take $15 in labor and $20 in materials to build. You also receive a $75 deposit from the customer. The initial GL entries for the order you have created will look like:
Account
Debit
Credit
Notes
WIP
100.00

This system account is created just to track the WIP's potential sales. Because the order is not delivered yet, there is no income at this time.
Orders Due

100.00
This is a System Account to balance the WIP and Built accounts.
Bank Account
75.00

Money, money, money!
Customer Deposits

75.00
This system account is used to track payments made before the order is a sale.

When the order is marked built (assuming the above costs), the following GL entries will be made:
Account
Debit
Credit
Notes
Built
100.00

This system account is created just to track the Built's potential sales. Because the order is not delivered yet, there is no income at this time.
WIP

100.00
Removing the balance from the WIP potential tracking accounting.
Inventory

20.00
Decrease in the inventory account corresponding to the materials used
Accrued Wages

15.00
Increase in the accrued wages liability account for the labor
Cost of WIP & Built
35.00

This system account accrues the costs of orders that have been built but are not yet a sale.

When the order becomes a sale, the following GL entries will be made:
Account
Debit
Credit
Notes
Built

100.00
Remove the balance from this account
Orders Due
100.00

Remove the balance from this account
Cost of WIP & Built

35.00
Remove the balance from this account
Wages
15.00

Record the wage expenses in the appropriate account.
COGS
20.00

Record the material expenses in the appropriate COGS account.
Income

100.00
Record the income in the appropriate account(s) based on the product
Sales Tax

10.00
Sales Tax is realized when the order becomes a sale.
Customer Deposits
75.00

Remove the balance from this account
Accounts Receivable
35.00

Balance of the amount owed by the customer.

See Also