JOURNAL ENTRIES IN CBS ACCOUNTS
RECEIVABLE
Default GL account numbers ... 1
Accrual basis clients ... 2
Sales Tax Adjustment (STA) ... 3
Cash basis clients ... 4
Journalizing all activity through the Accounts Receivable account... 5
The purpose of this document is to provide information on how CBS Accounts Receivable posts journal entries to general ledger accounts.
Default GL account numbers
The table below lists the location in which the default GL account number is specified.
GL account name Default location
Advertising and Promotion Company Properties or data-entry override during coupon entry
Bad Debts Expense Company Properties or data-entry override during write-off entry
Accounts Receivable Company Properties, customer record, or data-entry override
Cost of Sales Invoice item record
Discount Account Company Properties or data-entry override during invoice entry (on the Tasks / Receivable Transactions / Computations tab)
Finance Charge Revenue Company Properties
Inventory Invoice item record
Sales Flat amount billing in Company Properties, invoice item record, or data-entry override in Invoice Item Details
Sales Returns and Allowances Company Properties, invoice item record, or data-entry override in
Invoice Item Details
Sales Tax Customer record or data-entry override (on the Tasks / Receivable Transactions / Computations tab)
Shipping Company Properties, customer record, or data-entry override (on the Tasks / Receivable Transactions / Items tab)
Undeposited Payments Company Properties
Accrual basis clients
If your accountant set up your CBS program to use the accrual basis accounting method, the program will post a journal entry to the specified GL account at the time the transaction is finalized. If a transaction is subsequently voided or deleted, the program creates a reversal entry for that transaction.
The tables below identify the specific GL accounts to which the program posts the journal entry in the given situation.
Notes
When voiding or deleting a transaction, CBS creates a reversal transaction of the entries listed below. When unapplying a payment, CBS creates a reversal transaction of the entries listed below for
applying the payment type.
CBS allows you to void or delete a refund invoice, but it does not allow you to unapply a refund invoice.
Debit entries Credit entries Notes
Invoice (entering) Accounts Receivable Cost of Sales
Inventory Sales Shipping Sales Tax
Discount offered Discount Account Accounts Receivable Created and dated with the same date as the transaction date.
Discount expired Accounts Receivable Discount Account Created and dated the day after the discount expiration date.
Discount used (discount honored)
Discount Account Accounts Receivable Created and dated the day after the discount expiration date.
Depositable payment (entering)
Debit entries Credit entries Notes Write-off (applying to
an invoice)
Unearned Revenue Accounts Receivable
Credit memo (entering) Inventory Sales Sales Tax Shipping Cost of Sales Unearned Revenue Credit memo (applying)
Unearned Revenue Accounts Receivable
Finance charge invoice
Accounts Receivable Finance charge revenue
Refund invoice (creating)
Accounts Receivable Undeposited Payments
Occurs at the same time as applying a refund invoice.
Refund invoice (applying)
Unearned Revenue Accounts Receivable Occurs at the same time as creating a refund invoice.
Refund check or other payment (creating)
Undeposited Payments Cash Created in the
CheckWriter checkbook.
Sales Tax Adjustment (STA)
The program creates a Sales Tax Adjustment journal entry under the following conditions:
You marked the Include Discount checkbox for the sales tax code. (CBS subtracts the discount from invoice subtotal before applying the sales tax.)
Your accountant set up your CBS program to use the accrual basis accounting method.
The Discount Honored amount is not equal to the Discount Offered amount when you close the invoice.
Debit entries Credit entries
Discount Honored is greater than Discount Offered Sales tax payable Accounts Receivable
Cash basis clients
If your accountant set up your CBS software to use the cash basis accounting method, the program will post a journal entry to the specified GL account once cash is received for revenue or dispersed for expenses.
The tables below identify the specific GL accounts to which the program posts the journal entry in the given situation.
Notes
When voiding or deleting a transaction, CBS creates a reversal transaction of the entries listed below. When unapplying a payment, CBS creates a reversal transaction of the entries listed below for
applying the payment type.
CBS allows you to void or delete a refund invoice, but it does not allow you to unapply a refund invoice.
Amounts posted to the Accounts Receivable account will always be zero because CBS debits and credits the Accounts Receivable account at the time a payment is applied to an invoice. The Accounts Receivable account is not included on the Transactions List report.
Debit entries Credit entries Notes
Depositable payment (entering)
Undeposited Payments
Unearned Revenue Depositable payments include cash, credit card, check, COD.
Depositable payment (applying to an invoice)
Unearned Revenue Accounts Receivable
Coupon (entering) Advertising and Promotion
Unearned Revenue A coupon is a non-depositable payment.
Coupon (applying to an invoice)
Unearned Revenue Accounts Receivable
Write-off (entering) Bad Debts Expense Unearned Revenue A write-off is a non-depositable payment.
Debit entries Credit entries Notes Discount used
(honored)
Discount Account Unearned Revenue Created when a payment is applied to an invoice.
Depositable payments (depositing)
Cash Undeposited Payment
Finance charge invoice Accounts Receivable Finance Charge Revenue
Refund (creating a refund invoice)
Accounts Receivable Undeposited Payments
Occurs at the same time as applying a refund invoice.
Refund (applying a refund invoice)
Unearned Revenue Accounts Receivable Occurs at the same time as creating a refund invoice.
Refund check or other payment (creating)
Undeposited Payments
Cash Created in the
CheckWriter checkbook.
Journalizing all activity through the Accounts Receivable
account
If you do not want to journalize undeposited payments through the Undeposited Payment account and unapplied payments through the Unearned Revenue account, you can set up these accounts to use the Accounts Receivable account. (Select the same GL account number for the Accounts Receivable, Undeposited Payment, and Unearned Revenue accounts on the Accounts Receivable tab of the File / Company Properties dialog.) If you do this, the following ramifications will occur.
All activity will flow through the Accounts Receivable account, and CBS will create many in and out journal entries.
