Invoicing for July with June
On July 25, your company processes the invoice. The workfile contains a new transaction for 747.50. The system uses this calculation for the workfile transaction:
650.00 cost × 15 percent markup = 97.50
650.00 cost + 97.50 = 747.50
The system creates this journal entry for the June and July workfile transactions by adding the 402.50 and 747.50 that apply to the invoice:
G/L Date |
Account |
Debit |
Credit |
|---|---|---|---|
July 25, 2005 |
Accounts receivable |
1,150.00 |
|
July 25, 2005 |
Accrued accounts receivable |
(1,150.00) |
This illustration shows the T-account postings in the general ledger:
The system uses these AAIs to direct the system to create the journal entries:
Billing AAI table number 4832 directs the system to the base rules for the accrued accounts receivable account.
It creates a credit journal entry for the invoice amount.
The RC AAI directs the system to the accounts receivable account.
It creates a debit journal entry for the invoice amount.