Journal Entries
If you're trying to learn more about the Pakk accounting system - this is a great reference to understand the basics of how Pakk achieves 'parallel' accounting for transactions.
What follows is a step-by-step breakdown of a Pakk automated Journal Entry relating to a Sales Order. If you're trying to learn more about the Pakk accounting system - this is a great reference to understand the basics of how Pakk achieves 'parallel' accounting for transactions.
Sales Order
The Sales Order in question is Order 1805, placed on the 9/9/24. The order is a simple, single line order for a two units of a product costing £15 + 20% VAT = £30 + VAT = £36 total. The order is invoiced, stock is committed and dispatched, and payment received.
Primary Info
In the Primary Info pane of the Journal Entry, note the following fields:
Date: in the case of a Sales Order, this is the order date
From Transaction: a link back to the underlying transaction
From Transaction Type: the type of the underlying transaction
Lines
Now we'll go through the lines individually. Instead of going from top to bottom, we'll analyse the Journal Entry in a more logical fashion. Before we start, however, note the following: lines that have a line date impact on that date, lines that have no date impact on the date of the journal entry. Put another way, a line date overrides the top-level date in terms of when the account impact happens.
Income, Accounts Receivable, VAT
The top three lines represent the logical starting point and balance each other out. Since the order was invoiced on the 10/9/24, this is the tax point for the order and therefore these lines override the top-level Journal Entry date.
The full £36 of the order is split between £30 on the income account, and £6 on the VAT liability account
On the other side of this equation, £36 is ascribed to the accounts receivable as this is now owed by the customer
COGS, Stock Not Dispatched
The value of the stock at the point of commitment was £19. This amount is captured in a balancing pair of lines, also entered at the invoice date of the order.
£19 is ascribed to the liability account 'Stock Sold Not Dispatched'
On the other side of the equation, £19 is ascribed to the COGS account
Dispatch of Goods
Good dispatched happened on the 12/9/24 and leads to the creation of another pair of balancing lines.
The stock asset account drops by £19 as a reflection of the new, lower stock holding
The £19 that was originally ascribed to the 'Stock Sold Not Dispatched' account when the stock was committed is now 'cancelled out'
Receipt of Payment
Payment was received on the 17/9/24 (marked as 'Today' in the screenshot). This leads to another pair of balancing entries.
The 'Bank of Scotland' account goes up by £36
On the other side of the equation, the accounts receivable now drops by £36
Loyalty Points
In this simple example, loyalty points were clearly awarded at a rate of 1 point per £1 spent, such that 36 points were awarded. Notice the pair of balancing lines where the currency is 'PFPS' rather than GBP (loyalty points are fully tracked in the Pakk accounting system and are treated as a 'currency').
The increased loyalty point liability is ascribed to an internal account
On the other side of the equation, an expense for the same amount is entered
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