Real-time Profit Calculation

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.