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Accounting Document

Former Member
0 Kudos

Hello,

What happens when PGI & accounting document in invoice gets generated. I want to know which gets credited & debited. give me detail explanation.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi,

a) At the time of delivery of goods (PGI)

Cost of goods sold account Dr

Inventory account Cr

b) During generation of Invoice

Customer / Debtors account Dr

Sales/Revenue account Cr

Taxes Cr

c) During collection of Payment

Bank account Dr

Discount Dr

Customer/ Debtors account Cr

reg

Deepak

Answers (2)

Answers (2)

Former Member
0 Kudos

Thanks

Former Member
0 Kudos

Hi Naveed

When the Goods are dispatched to customer through delivery the following transactions takes place: (PGI)

Cost of Goods Sold - Dr

Inventory A/c - Cr

And during billing

sales A/c - Dr

to customer - Cr

Regards,

DDP