Dynamics GP – Cash Sales Application System
The significant difference between a cash sales application system and cash received on account application system is that there is no previous asset record (customer account balance) in a cash sales system. The generation of initial documentation is thus the focal point of the control system. Once a record has been prepared, cash sales are subject to accounting control. The major feature of this system is the separation of the following functions:
The finished goods department has custody of the assets that are available for sale to customers. Sales to customers are documented on sales orders. A sales order indicates the amount due for the purchase as well as the inventory control numbers of the items being sold.
The customer takes a copy of the sales order to cash receipts. The cash receipts department records the sale in a cash register or other secure device, accepts the customer’s payment, and issues a sales receipt (two copies) to the customer. Number files the sales order. At the end of the day, the daily cash summary is generated and includes a control total of the day’s cash sales. One copy of this total is forwarded to the general ledger: the other copy is filed by date.
Sales orders are reviewed by reasonableness and posted to the sales journal. Any inventory control information contained on sates could be processed at this point. A journal voucher is prepared to summarize cash sales. The sales orders are filed by date. The journal voucher is forwarded to general ledger.
The journal voucher from the billing department and the control total received from the cash receipts department are compared. The amounts are then posted to the general ledger. Note that the source of posting the general ledger is the journal voucher notification by billing indicating the amount of sales orders received. This amount must agree with the total of the cash received from customers by cash receipts. Finished goods do not release goods until the customer returns from the cash receipts department with a sates receipt. The goods are released with the sales receipt. A copy of the sales receipt is filed in the finished goods department.