The Point-of-Sales module is tightly integrated with the accounting module which gives you real-time profit/loss calculation.
When you enter a Purchase, the following two accounting entries are automatically created for you:
|
DEBIT |
CREDIT |
AMOUNT |
|
STOCK ACCOUNT |
CASH ACCOUNT |
HKD80 Deposit/Down Payment） |
|
STOCK ACCOUNT |
ACCOUNT PAYABLES |
HKD720 (Outstanding Balance) |
When you enter a Sales Invoice, the following three accounting entries are created automatically:
|
DEBIT |
CREDIT |
AMOUNT |
|
CASH ACCOUNT |
SALES ACCOUNT |
HKD100 (Deposit/Down Payment) |
|
ACCOUNT RECEIVABLES |
SALES ACCOUNT |
HKD900 (Outstanding Balance) |
|
COST OF GOOD SOLD |
STOCK ACCOUNT |
HKD800 |
Because of this automatic accounting entries, you can recognize the profit ( "SALES" – "COST OF GOOD SOLD" = HKD1000 – HKD800) in real-time. This timely and accurate profit/loss calculation is very important in times of high inflation or price fluctuations. It also enables the calculation of commissions based on actual profits which is important for many businesses like franchises.