Payment VS Transactions in accounting

[Nandani]

I want to maintain accounting for my organization.While placing purchae and
sales order , payment is created and updated using createPayment and
createOrderPaymentPreference and is updated too.
Is it require to create new transaction for payment to maintain reports
like trial balance, cash flow statements.?



Thanks--
Nandani Aggarwal

[Pierre Smits]

Hi Nandani,

Welcome.

Yes, in order to have correct financial reports like the trial balance and
cash flow statements you can say that doing the financial registrations of
the payments and the subsequent gl transactions is a requirement.

Regards,

Pierre Smits

*ORRTIZ.COM <http://www.orrtiz.com>*
Services & Solutions for Cloud-
Based Manufacturing, Professional
Services and Retail & Trade
http://www.orrtiz.com


On Wed, Jan 22, 2014 at 5:41 PM, Nandani Aggarwal <
[hidden email]> wrote:

> I want to maintain accounting for my organization.While placing purchae and
> sales order , payment is created and updated using createPayment and
> createOrderPaymentPreference and is updated too.
> Is it require to create new transaction for payment to maintain reports
> like trial balance, cash flow statements.?
>
>
>
> Thanks--
> Nandani Aggarwal
>

[Nandani]

Thanks a lot for help.

I want to know suppose there is purchase order , on change of invoice
status from approved to ready state 1 ECA is called
"createAcctgTransForPurchaseInvoice" which register transactions for
particular invoice.It register both debit and credit entry.
When payment is received for this purchase order then again 1 ECA gets
called "createAcctgTransAndEntriesForIncomingPayment".It creates debit
entry.

It means for purchase order 3 transactions are registered in ledger?

--Thanks in advance


On Thu, Jan 23, 2014 at 1:05 AM, Pierre Smits <[hidden email]>wrote:

> Hi Nandani,
>
> Welcome.
>
> Yes, in order to have correct financial reports like the trial balance and
> cash flow statements you can say that doing the financial registrations of
> the payments and the subsequent gl transactions is a requirement.
>
> Regards,
>
> Pierre Smits
>
> *ORRTIZ.COM <http://www.orrtiz.com>*
> Services & Solutions for Cloud-
> Based Manufacturing, Professional
> Services and Retail & Trade
> http://www.orrtiz.com
>
>
> On Wed, Jan 22, 2014 at 5:41 PM, Nandani Aggarwal <
> [hidden email]> wrote:
>
> > I want to maintain accounting for my organization.While placing purchae
> and
> > sales order , payment is created and updated using createPayment and
> > createOrderPaymentPreference and is updated too.
> > Is it require to create new transaction for payment to maintain reports
> > like trial balance, cash flow statements.?
> >
> >
> >
> > Thanks--
> > Nandani Aggarwal
> >
>

--
Nandani Aggarwal

[Pierre Smits]

HI Nandani,

Actually in your example 2 transactions are created, and each should be
with 2 entries. One debit and one credit. The balance of the debit and
credit should be 0. This is a must in double entry acounting.

So, to recap:
The gl transaction created by createAcctgTransForPurchaseInvoice should
register 2 gl entries, one debit and one credit (at least, depending on
your setup, but the balance between the debit and credit registrations
should be 0).

The gl transaction created by createAcctgTransAndEntriesForIncomingPayment
should (at least, see above) also generate 2 gl entries, one for debit and
one for credit. Again the balance should be 0.

Regards,

Pierre Smits

*ORRTIZ.COM <http://www.orrtiz.com>*
Services & Solutions for Cloud-
Based Manufacturing, Professional
Services and Retail & Trade
http://www.orrtiz.com

[Nandani]

I will check it.Thank you Pierre



On Thu, Jan 23, 2014 at 1:31 AM, Pierre Smits <[hidden email]>wrote:

> HI Nandani,
>
> Actually in your example 2 transactions are created, and each should be
> with 2 entries. One debit and one credit. The balance of the debit and
> credit should be 0. This is a must in double entry acounting.
>
> So, to recap:
> The gl transaction created by createAcctgTransForPurchaseInvoice should
> register 2 gl entries, one debit and one credit (at least, depending on
> your setup, but the balance between the debit and credit registrations
> should be 0).
>
> The gl transaction created by createAcctgTransAndEntriesForIncomingPayment
> should (at least, see above) also generate 2 gl entries, one for debit and
> one for credit. Again the balance should be 0.
>
> Regards,
>
> Pierre Smits
>
> *ORRTIZ.COM <http://www.orrtiz.com>*
> Services & Solutions for Cloud-
> Based Manufacturing, Professional
> Services and Retail & Trade
> http://www.orrtiz.com
>

--
Nandani Aggarwal