| |
11. Sale and Return Stock
1) Reseller - Concept
2) Accounts and Products
3) Receiving Stock
4) Selling Stock
5) Returning Stock
6) Suppliers Invoice
7) Distributor - Concept
8) Analysis 3 and Customer
9) Stock Movements
10) Customer Sales
Goto Top
11.1 Reseller - Concept
Stock items obtained on a 'Sale or Return' basis are not valued in the ledger of the receiving company, as ownership title does not pass until an item has been sold on. At which point the on-hand stock quantity must be reduced and a liability to the supplier created, as well as recognising the revenue from the sale.
Therefore, such items are held within Acceptum on a 'Quantity' only basis.
Goto Top
11.2 Accounts and Products
To use the Sale or Return feature several default values have to be established.
Under menu option Setup|Accounts the Balance Sheet 'Sale or Return Clearing Account' has to be created.
Under menu option Setup|Companies the 'Sale or Return Clearing Account' has to be set.
Plus accounts for each product held on a Sale or Return basis.
The Account Type 'Sale or Return' is required for these products.
The supplier and the products actual purchase price is set under the Product tab along with other relevant product information.
Goto Top
11.3 Receiving Stock
Select the menu option Sources|Products|Sale or Return Stock to open the Sale or Return Stock Entry List window.
Click the 'Add New Record' icon in the toolbar to insert a record, then press F3 to open the detail window.
Complete the Date, Document Ref. and Text attributes, plus any Linked document.
Click  to create a new document based upon an existing document.
To add product line items to the document, click 'Add Line'.
Use the drop-down list to select Sale or Return Products, then set the quantity being received and a line item description.
Click  to update the Ledger for the received quantities.
When this is done the documents Journal Number is changed to the ledger journal number used for the posting.
The stock receipt journal can be seen via menu option Ledger|Posted Journal Edit. The journal can be edited; the only restriction being that a line item must not be marked as 'Cleared'.
Notice that the Quantity and Units have been set, but that the journal lines are not valued.
This is reflected under menu option Sources|Products|Available Stock which shows no Ledger value for the Sale or Return items.
Goto Top
11.4 Selling Stock
Select the menu option Sources|Sales Orders|Enter to open the Sales Orders List window.
Refer to Selling to Customers for additional information.
On the Detail window enter the Sale or Return product under the 'Products Sold' tab in the normal manner.
Instead of the products being valued using Moving Average pricing, the Purchase Price entered under the Product/Account record is used.
When the invoice is posted to the Ledger, the 'Sale or Return Clearing' account is credited with the cost of the items sold. This entry is an accrual for the cost due to the supplier. Hence the suppliers code set in the Sale or Return Product record is used in the narrative.
Goto Top
11.5 Returning Stock
At the end of the Sale or Return period and items are returned to the supplier, select the menu option Sources|Products|Sale or Return Stock to open the Sale or Return Stock Entry List window.
Click the 'Add New Record' icon in the toolbar to insert a record, then press F3 to open the detail window.
Complete the Date, Document Ref. and Text attributes, plus any Linked document.
Alternatively, Click to create a new document based upon an existing document.
In this case the document used when receiving the stock.
On each product line enter a minus quantity for the items being returned.
Click to update the Ledger for the returned quantities.
When this is done the documents Journal Number is changed to the ledger journal number used for the posting.
The stock returns journal can be seen via menu option Ledger|Posted Journal Edit. The journal can be edited; the only restriction being that a line item must not be marked as 'Cleared'.
The cleared stock position can be seen via Sources|Products|Available Stock.
Whilst the accrual for the sold items can be seen under Ledger|Trial Balances|Detail TB.
Goto Top
11.6 Suppliers Invoice
Select the menu option Sources|Supplier Invoices|Enter to open the Supplier Invoices List window.
Click the 'Add New Record' icon in the toolbar to insert an invoice record, then press F3 to open the detail window.
Enter the Suppliers invoice and allocate the invoiced values to the 'Sale or Return Clearing' account.
After posting the suppliers invoice, the 'Sale or Return Clearing' account needs to have its entries 'Cleared' against each other under the menu option Ledger|Account Item Clearing.
Once items are cleared, they do not carry across the financial year end.
Refer to Account Item Clearing.
Goto Top
11.7 Distributor - Concept
Stock items placed with customers on a 'Sale or Return' basis must still be valued in the ledger of the distributor company, as ownership does not pass until an item has been sold by the customer. At which point the customers stock quantity must be reduced and a receiveable from the customer created, as well as recognising the revenue from the sale.
Therefore, such items are held within Acceptum by merely denoting a change in stock location on standard products.
Goto Top
11.8 Analysis 3 and Customer
To denote a change in stock location Acceptum uses the Analysis 3 attribute.
So create Analysis 3 codes to denote warehouses, warehouse locations, salesmen and customers via the menu option Setup|Analysis 3.
Goto Top
11.9 Stock Movements
When stock is issued to a salesman, only a change in stock location is required.
This can be processed via the menu option Sources|Products|Product Movements.
Set the Product code, quantity and the 'From' and 'To' attributes before posting to the ledger.
After posting the movement, the location of the moved quantity is shown.
The same can be done for when a salesman leaves products with a customer on a Sale or Return basis.
A statement of product left with a customer can be printed showing the quantity and its value.
The statement is produced by selecting menu option File|Print whilst the Product Movements window is opened.
Select the report 'Sale or Return Items Issued' and set selection criteria for the required Analysis 3/Customer.
Goto Top
11.10 Customer Sales
When the company is notified that a customer has sold product held on a Sale or Return basis, a Customer Document needs to be raised.
Select menu option Sources|Sales Orders|Enter to create the required invoice for the products sold.
Be sure to set the 'Product Sold' Location column to the Customers stock location.
On posting the invoice, the balance of Available Stock with the customer is reduced.
Refer to Selling to Customers for further details on raising Sales Orders.
| |