Echain Finance Modules

Account Structure -- Element Name - Elements -- Values - Create the
new account values.

Finance Adjustments:

 For Both the Suppliers and Customers.

 Journal Source for Pre Approval

 Journal Type

 Receipt clearing account where set the Intermediate Account

For Suppliers – Intermediate Account – account type is liability

For Customers - Intermediate Account – account type is Asset
For Cash - Intermediate Account – account type is Asset

 Payment clearing account where set the Intermediate Account

For Suppliers – Intermediate Account – account type is liability

For Customers - Intermediate Account – account type is Asset
For Cash - Intermediate Account – account type is Asset

Purchase order:

At the time of the GRN all the taxes will be in DR.

Inventory AP Accrual account will be in CR.

VAT will be Asset

TDS will be Liability

Sales Order:

At the time of shipping all the taxes will be as CR

VAT will be Liability

TDS will be Liability

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Payables

Supplier Invoice:

In the supplier invoice the Debit Memo and Prepayment can be adjusted. The
supplier payment vouchers can be made for supplier invoices.

Debit Memo Invoices:

Nothing can be adjusted in the Debit Memo. The supplier payment vouchers
cannot be made for debit memo.

Prepayment Invoices:

Supplier payment vouchers can be made for prepayment invoices.

Credit memo can be adjusted in the prepayment.

Credit Memo Invoices:

Nothing can be adjusted in the Credit Memo. The supplier payment vouchers can
be made for Credit memo.

Receivables

Customer Invoices

In the customer invoices the credit memo and advance deposit can be adjusted.
The cash receipt can be made for the customer invoices.

Debit Memo Invoices

In the debit memo invoices the advance deposit and credit memo can be
adjusted.

The cash receipt can be made for the debit memo invoices.

Advance Deposit Invoices:

No invoices can be adjusted in the advance deposit invoices.

Cash receipt can be made for advance deposit invoices.

Credit Memo Invoices:

No invoices can be adjusted in the credit memo invoices.

The cash receipt cannot be made for the credit memo invoices.

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Debtors Invoice wise aging report

Net Amount = ((outstanding amount + Debit memo) – (credit memo + advance

deposit + cash receipt))

The advance deposit will be shown in the debtors invoice wise aging report after
the cash receipt is made.

Creditors invoice wise aging report

Net Amount = ((outstanding amount + credit memo) - (prepayment amount +

debit memo + supplier payment vouchers))

The prepayment invoice will be shown in the creditors invoice wise aging report
after the supplier payment voucher is made.

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Payables Transactions Through Purchase Order Receipts

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Purchase order receipt:

Inventory AP Accrual account (CR)

To
Purchase Account (DR)
All taxes (DR)

Supplier Invoice which has come through the purchase order receipt

Sundry Creditors (CR)

To
Inventory AP Accrual account (DR)

Supplier Payment Voucher:

Bank (CR)
To
Sundry Creditors (DR)

Miscellaneous Payment Vouchers:

Bank (CR)
To
Expenses (DR)

Prepayment Invoices:

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Sundry Creditors (CR)
To
Advance To Supplier (DR)

While making the Supplier Payment Vouchers for Prepayment Invoices

Bank (CR)
To
Sundry Creditors (DR)

While making the invoices

Sundry Creditors (CR)

To
Purchase Account (DR)

While Adjusting the prepayment in the invoice the adjusted journal voucher will
be

Advance To Supplier (CR)

To
Sundry Creditors (DR)

Debit Memo Invoices:

Reverse of the supplier invoices.

Credit Memo Invoices:

Same as the supplier invoices.

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Receivables Transactions Through Sales Order and Shipping

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Sundry Debtors which has come through the sales order shipping

Sundry Debtors (DR)

To
Sales Account (CR)

Cash Receipt:

Bank Account (DR)

To
Sundry Debtors (CR)

Miscellaneous cash Receipts:

Bank Account (DR)

To
Income Account (CR)

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Advance Deposit Invoices:

Sundry Debtors (DR)

To
Collection Account (CR)

While making the cash receipt for the advance deposit

Bank Account (DR)

To
Sundry Debtors (CR)

While making the invoices

Sundry Debtors (DR)

To
Sales Account (CR)

While adjusting advance deposit in the invoices the adjusted journal voucher will
be

Collection Account (DR)

To
Sundry Debtors (CR)

Customer Debit Memo Invoices:

Customer debit memo invoice is same as the customer invoices.

Customer Credit Memo Invoices:

Reverse of the customer invoices.