difference between "Sales" and "SLCA" in the general ledger ?

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topcat
topcat Registered Posts: 452
in General discussion
is SLCA just for credit sales and the other for sales which have been paid for upfront cash etc?

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  • ExcelAnt
    ExcelAnt Registered Posts: 80 Epic contributor 🐘
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    Hiya,

    Pretty much Expect the SCLA is on the balance sheet and Sales is P&L. to explain with the double entry

    Customer buys a boat upfront in cash

    CR sales
    DR bank
    Job done!

    Customer decides he cant afford boat in cash so takes Credit from you (a recognised sale that he will make good on the debt)

    CR sales
    DR SCLA

    Once the cash is received its a balance sheet movement
    CR SCLA (now zero)
    DR Bank

    This is done so that the revenue is Recognised in the correct period it could be that payment is made in a different month or even year (different accounting period). But the salle was Confirmed when the customer agreed to buy.

    make sense?
  • topcat
    topcat Registered Posts: 452
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    ExcelAnt wrote: »
    Hiya,

    Pretty much Expect the SCLA is on the balance sheet and Sales is P&L. to explain with the double entry

    Customer buys a boat upfront in cash

    CR sales
    DR bank
    Job done!

    Customer decides he cant afford boat in cash so takes Credit from you (a recognised sale that he will make good on the debt)

    CR sales
    DR SCLA

    Once the cash is received its a balance sheet movement
    CR SCLA (now zero)
    DR Bank

    This is done so that the revenue is Recognised in the correct period it could be that payment is made in a different month or even year (different accounting period). But the salle was Confirmed when the customer agreed to buy.

    make sense?

    hi mate thanks for that makes perfect sense now :thumbup1:

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