Sales ledger system
Considering what we would expect to find in a sales ledger, we can say that the typical data entry in the sales ledger system is as follows.
amendments
• Modifications of customer data, for example, change of address, change of credit limits, etc.
• Insertion of new clients
• Elimination of old “non-active” clients
Transaction data related to:
• Sales transaction, for billing
• Customer payments
• Credit notes
• Adjustments (debit or credit items)
Some computerized sales books produce invoices, so basic sales data is entered into the system. But other companies may have a specialized invoicing module, so the sales accounting package is not expected to generate invoices. The invoice details are already available (as a result of the specialized module) and are entered into the sales accounting system instead of the basic sales data.
Process in a sales ledger system
The main action involved in updating the sales ledger is to modify the outstanding amount on the customer’s account. How the quantity is changed depends on what data is being entered. When processing begins, an account balance is called a prepaid balance. When processing is complete, the account balance is called the carried balance. These terms are often abbreviated to overtake and overtake.
What a computer does is add or subtract what you tell it from the b/f balance, and end up with a balance in advance. This method of updating customer accounts is called the balance forwarding method.
Most systems also offer users the open element method of processing the data, which is much neater. Under this method, the user identifies specific invoices and credits individual payments against specific invoices. Late payments on individual bills can be identified and pursued. The outstanding balance of customers is the sum of the open items pending payment. The open-entry method follows best accounting practices, but is more time consuming than the balance forwarding method.
Outputs of a sales ledger system
Typical results in a computerized sales ledger are as follows.
• List of daily books. A list of all transactions recorded each day. This provides an audit trail, that is, it is information that company auditors can use when performing their work. Batch and control totals will be included in the listing.
• Bills. (if the package is one that is expected to produce invoices)
• Declarations. Month-end statements for clients.
• List of defaulters by seniority. Probably produced monthly.
• Sales analysis report. These will analyze sales according to the sales analysis codes in the sales ledger file.
• Reminder letters from debtors. Letters can be produced automatically to chase down defaulters when the payment due date passes without payment being received.
• Customer lists (or perhaps a selective list). The list can be printed on sticky labels, to send client letters or to make material.
• Response to queries. Perhaps output to a video screen instead of hard copy, for quick response to customer queries.
• Output to disk file for other modules. Example, to the stock control module and the nominal ledger module, if these are also used by the organization and the package is not integrated.