Sales Tax (S) - Sales Order to Invoice

When you enter a sales order with sales tax (tax explanation code S) and run Update Customer Sales (R42800), the system uses distribution AAIs to record the Store Sales, Tax Liability, Cost of Goods (COG) Sold, and Inventory accounts. You offset the Tax Liability account when you pay the tax authority.

This example displays the AAI that the system uses and the tables and accounts that the system updates when you run the specified program. The example is for a sales order in the amount of 1,000 USD with a 10 percent sales tax rate.

Program	AAI*	Table	Accounts & Fields Updated	F0911 DR	F0911 CR
Update Customer Sales (R42800) Creates an invoice	. . DM - 4230 DM - 4250 DM - 4220 DM - 4240	F03B11 . F0911	Taxable (1,000) Tax (100) Gross (1,100) Store Sales Tax Liability COG Sold Inventory	. . . . . 900	. . . 1,000 100 . 900
Post General Ledger (R09801) Posts the invoice to the general ledger	FIN - RC	F0911	AR Trade	1,100	.

* DM - AAI = Distribution/Manufacturing AAI (F4950); FIN - AAI = Financial AAI (F0012)