Financial Journals across Project Installer Franchise Networks

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Financial Journals across Project Installer Franchise Networks

Table of Contents

Overview

Describes the order flow and financial Journals 

This includes journals created when a Franchisee sources stock and services from a Franchisor

Gliffy Diagram

Deposits

Deposits are money towards a sale - they are not a sale.

  1. Deposit invoices do not have GST (Tax type NA)

  2. Later invoices will credit the deposit amount with no GST (Tax type NA)

  3. Deposits are taken as part of the sales process

Discounts

  1. Discounts apply at the following levels

    1. Quote

    2. Package

    3. Sales Order

      1. Discounts may be adjusted once the sales order is created, all changes are audit tracked.

A sales Order is the customer agreement

  1. Lists Stock Articles that need to get to site

  2. Lists Services that are to be fulfilled

Configuring a Sales Order

  1. Deliveries - of stock Articles and Fabrications to site

  2. Purchases of Stock Articles and configured items required

  3. Fabrications - that are to be created by internal or external persons

  4. Installation Services - that are to be carried out by internal or external persons

  5. Commissioning Services - carried out by internal or external persons

Each of the above may be

  1. Sourced by the Franchisee from their own stock or Suppliers

  2. Sourced by the Franchisor from their own stock or suppliers

The Customer invoice/s

  1. The customer invoice is for the agreed order value

  2. The invoice is created at the time of confirming the order

  3. The date of the invoice is set to be at the date of the expected installation date

  4. The invoice date may be changed manually

  5. Progress payments will allocate to the invoice

  6. An Additional invoice (Credit Note) will be created for changes to the original order

    1. This invoice will be created at the end of the job once all changes are known

Calculation of the amount to invoice for a date

When a customer needs to make a progress payment -

Preview the amount they need to pay by entering the date they are paying up to - it includes:

  1. Deposit for articles not yet invoiced

  2. Restocking fees not yet invoiced

  3. Services in Delivered status with a required date on or before today

  4. Delivery fee if any articles or fabrications not flagged as customer pickup are included in invoice and delivery fee has not yet been invoiced.

  5. Preview invoice also lists any unpaid invoices for this order and any unallocated payments or credit notes.

Then create the invoice and take the payment.

When sourcing from the company that made the sale

Stock Items

Purchase documents

Stock Receipt Journal

COGS

Invoice to Customer

Stock from my warehouse

Not Relevant as stock already exists in the warehouse

Not Relevant as stock already exists in the warehouse

On departure from warehouse

Dr

Cr

Cost of Goods Sold

  • Linked to Stock Article

Stock on Hand

  1. Delivery Confirms Pickup

  2. Customer Confirms Pickup

  3. Service Event Confirms pickup

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • From Article or default

  • Line linked to Article

Trade Debtors

Stock sourced from a supplier to fulfill the order

(On a purchase order with other items)

Standard Purchase Order with other items

Creditor Invoice

Dr

Cr

Goods Received Not invoiced

  • Line linked to Order Line

Trade Creditors

Standard Stock Receipt journal

 

On departure from Warehouse

Dr

Cr

Cost of Goods Sold

  • Linked to Stock Article

Stock on Hand

  1. Delivery Confirms Pickup

  2. Customer Confirms Pickup

  3. Service Event Confirms pickup

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • From Article or default

  • Line linked to Article

Trade Debtors

Stock Sent by Supplier directly to site

(on a purchase order only for that site)

Drop Ship Purchase Order (linked to sales order) => Creditor Invoice

Dr

Cr

Cost of Goods Sold

  • Line linked to Order Line

Trade Creditors

Creditor Invoice

  • Linked to Sales Order

Not Required as stock never receipted

 

 

COGS Journal Not Required as stock never receipted

COGS calculation - See Creditor invoice

 

 

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • From Article or default

  • Line linked to Article

Trade Debtors

Services

 

 

 

 

Services provided by employees

NA

NA

NA

Creditor Invoice line is journaled to cost of sale

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • From Service

  • Line linked to Service

Trade Debtors

Fabrications provided by supplier

  • Never Stocked

Fabrication Order => Creditor Invoice Line

Dr

Cr

Cost of Goods Sold

Trade Creditors

NA

NA

COGS Journal Not Required as stock never receipted

Creditor Invoice line is journaled to cost of sale

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • From Service

  • Line linked to Service

Trade Debtors

Delivery provided by supplier (eg Courier)

Delivery Service Event => Creditor Invoice Line

Dr

Cr

Cost of Goods Sold

Trade Creditors

NA

NA

Creditor Invoice line is journaled to cost of sale

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • "Delivery Charge" Control Account

Trade Debtors

Installation provided by supplier

Installation Service Event => Creditor Invoice Line

  • linked to customer sales order

Dr

Cr

Cost of Goods Sold

Trade Creditors

NA

NA

Creditor Invoice line is journaled to cost of sale

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • From Service

  • Line linked to Service

Trade Debtors

Commissioning provided by supplier

Commissioning Service Event => Creditor Invoice Line

  • linked to customer sales order

Dr

Cr

Cost of Goods Sold

Trade Creditors

NA

NA

Creditor Invoice line is journaled to cost of sale

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • From Service

  • Line linked to Service

Trade Debtors

Installers stock from the van

(Owned by Store)

 

 

 

 

Financial Journals when sourcing from Franchisor for Franchisee Installation Orders

  1. Franchisee makes the sale

  2. Franchisee sources products and services from Franchisor

  3. Franchisor sources products and services from suppliers

  4. Customer invoice for full job is created at time of sale and future dated to date of installation (the invoice date can be changed).

 

Stock Items

Purchase documents

In Franchisor

Stock Receipt Journal

in Franchisor

COGS

in Franchisor

Sales Invoice in Franchisor (to Franchisee)

Creditor Invoice in Franchisee (to Franchisor)

Stock Receipt in Francisee

COGS in Franchisee

Invoice to Customer

in Franchisee

Stock from the Franchisor warehouse sent to franchisee

Not Relevant as stock already exists in the warehouse

Not Relevant as stock already exists in the warehouse

On departure from franchisor warehouse

Dr

Cr

Cost of Goods Sold

  • Linked to Stock Article

Stock on Hand

  1. Delivery Confirms Pickup

  2. Customer Confirms Pickup

  3. Service Event Confirms pickup

On departure from Franchisor warehouse

Cr

Dr

Revenue

  • From Article or default

  • Line linked to Article

Trade Debtors

 

On departure from Franchisor warehouse

Standard Creditor Invoice linked to sales invoice in Franchisor

On departure from Franchisor warehouse

Standard Stock Receipt Journal

On departure from Franchisee

Dr

Cr

Cost of Goods Sold

  • Linked to Stock Article

Stock on Hand

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr

Dr

Revenue

  • From Article or default

  • Line linked to Article

Trade Debtors

Stock from the Franchisor warehouse sent to Customer Site

Not Relevant

Not Relevant

On departure from franchisor warehouse

Dr

Cr

Cost of Goods Sold

  • Linked to Stock Article

Stock on Hand

  1. Delivery Confirms Pickup

  2. Customer Confirms Pickup

  3. Service Event Confirms pickup

On departure from Franchisor warehouse

Cr

Dr

Revenue

  • From Article or default

  • Line linked to Article

Trade Debtors

 

On departure from Franchisor warehouse

Standard Creditor Invoice linked to sales invoice in Franchisor

On departure from Franchisor warehouse

Standard Stock Reciept Journal

 On departure from Franchisor warehouse

Dr

Cr

Cost of Goods Sold

  • Linked to Stock Article

Stock on Hand

 

Created when sales order Authorised

Invoice Date to be installation date (ie in future)

Cr