Posting Accounts Setup

• 08-03-2008 7:25 PM

  Richi Joined on 05-16-2008 Posts 2

  Posting Accounts Setup Reply Contact Can anybody plz help me... Suppose a service industry make a sale of software licenses and support. Which accounts should be debited and which credited? i knw i must debit and credit these ones but..... Dr A/c Receivable Cr Sale Dr cost of goods sold - salary developers & cost of lic cr???? I need to know these to setup my posting accounts. hope to get a quick response. Thanks

  Tags: Dynamics GP 10

• 08-07-2008 10:17 PM

  In reply to

  callen Joined on 06-27-2008 Posts 33

  Re: Posting Accounts Setup Reply Contact Good question. Wouldn't the COGS be handled at a GL level by the transactions created during development of the software? In other words, the sale would not have a COGS entry. Instead, all the software development costs such as salaries and other expenses would be debited to COGS accounts. How would this work? Do you need an entry for sales margin analysis?

• 08-08-2008 12:33 AM

  In reply to

  Mbarada Joined on 08-07-2008 Posts 4

  Re: Posting Accounts Setup Reply Contact I really liked the question. I think this question may have different answer depends on the financial rules of the country. In lebanon we have in our chart of accounts the folowing : 94 INVENTORY 940 Goods 941 Raw materials. 942 Other materials and consumables. 943 Investment in progress. 944 Services in progress. 945 Production (Semi-finished and finished). So once you will sell Software license(specially if you are the license provider) , you will do the following : Dr: A/c Receivables Cr: Sales ------------------- Dr: Cost of good sold - Salary..... Cr: Services in Progress ----------------- So the time of every employee considered as service will not be considered as salary at the end of the month. It will be considered in the service in progress acount. You got my point ? I don't know if my answer helps you.

  Tags: Posting

• 08-22-2008 3:03 PM

  In reply to

  Mohammad Moustafa Joined on 08-22-2008 Posts 1

  Re: Posting Accounts Setup Reply Contact Dear Richi In my openion you should analize your expenses into Operation Expenses (EX. Developers Salaries and any expense related to Item sold), Seling Expenses (Ex. Sales People Salaries) and Admin Expenses. Then by the end of each period you should credit all the operation Expenses and debit C.O.G.S. N.B. this method depends on your judjment on the expenses and which one or how much the amount you will considered as operation expenses. B. RGRDS Mohammad Moustafa