Debiting revenue ledger on Item Account setup

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We have just created some new "upgrade" items. For example, instead of going to resturant B, you go to resturant A after you purchase an upgrade item. To account for it properly, we need to debit resturant A and then credit resturant B for the price of the upgrade item. How can we set this up in Item Account Maintenance?

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Community Member on at

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Re: Debiting revenue ledger on Item Account setup

What if you set the COGS Account in the Upgrade items set up to be the Revenue Account in Restaurant A?

Then every time you sell this upgrade, Restaurnt A will be debited. The question is how are you valuing the stock item - and are you maintaining a Cost of Sale?
Victoria Yudin 22,766 on at

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Re: Debiting revenue ledger on Item Account setup

Just to make sure we're all understanding what you're asking, a few questions:

1. Are you using SOP?

2. Each Restaurant has a separate GP account to record revenue?

3. What is the Item Type of the Inventory items are you using?

4. Can you show an example with numbers of what you would like to do? Here is what I got so far:

You invoice a customer for item RestB for $100. (Debit AR for $100, Credit Sales-RestB for $100)

Customer then purchases an upgrade to RestA. Invoice customer for item UpgradeToRestA $20. (Debit AR for $20, Credit ______ for ______) ?
Dan Liebl 7,320 on at

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Re: Debiting revenue ledger on Item Account setup

I would run a test, but couldn't you use a negative line item to 'reverse' the restaurant B and then add in restaurant A on a sales order? Other question would be how are the items set up?

Dan Liebl, CMA CPIM | Senior Consultant | OTT,Inc | DLiebl@OTT-inc.com