TurboCASH Accounting Software TurboCASH United Kingdom
Select your Country
OPEN SOURCE ACCOUNTING SOFTWARE
HomeFeatures & ScreenshotsShop onlineCompareFAQForumRegisterContact
Community
Free Downloads
Shop
Other Titles

Using TurboCASH

 







DOCUMENT PROCESSING
DEBTOR (CUSTOMER) DOCUMENTS
  
Debtor (customer) documents are source documents created from your stock item code file to document the transactions with your debtors (customers). The basic documents are quotes, invoices and credit notes. Invoices can also be created or generated from confirmed or converted Quotes and generated Repeating Invoices. The final step is to post or update the invoices and credit notes to the ledger. A delivery note may be printed for any invoice on the Input - Documents - Invoices - Print Delivery Notes menu option. You may print or re-print any of these documents in the Input - Documents - Print menu option at any time, provided that the documents have not yet been deleted.

1. Quotes - TurboCASH will generate or process quotes for your stock items for a specified debtor or customer. A quote is a document indicating that you may offer a product(s) or stock item(s) at specified quantities and prices. These quotes will not affect the stock items at hand and do not generate transactions. However, when a debtor or customer accepts a quote, the quote may then be confirmed and converted to an invoice. To view the printed quote, click here.

2. Invoices - When a debtor or a customer purchases goods or services from you, you need to generate an invoice, which can be printed and handed or sent to the debtor or customer. TurboCASH will then, once you post or update the Invoice to the ledger, update all the accounts, stock quantities and values, etc. The transactions for an Invoice is as follows:

 

B> 2.1 The selling price of the sales transaction on the invoice: (To view the printed Invoice for these transactions, click here.):





The debtor account will be debited and the sales and VAT account (Output VAT) will be credited with the selling price.

2.2 The cost price of the sales transaction on the invoice:

The cost price (average cost or latest cost) for the sale of a stock item, will be debited to the cost of sales account and the stock control account will be credited.




TurboCASH will NOT generate this transaction, if you have not set to use Cost of Sales in the Setup - System Parameters - Stock Information (Use Cost of Sales) menu option or if there is no cost of sales reflected on the Edit - Stock Information menu option. Before you update or process your invoices and credit notes, it is important to:
  1. Take-on the opening balances for your stock items (if you are an existing business with closing figures on your previous accounting system).

  2. Post or update your purchase and goods returned documents) to the ledger, This will ensure that your cost of sales (average cost or latest cost) amounts is updated.
The amount for the Cost of Sales transaction will be calculated according to the method (use latest cost or average cost) you have selected on the in the Setup - System Parameters - Stock Information (Use Cost of Sales) menu option. Before you start to process and update any Invoices or other documents, you need to carefully plan and decide if you should use latest cost or average cost method. This will drastically influence your gross profit (Sales less Cost of Sales) and consequently the net profit. If you are not sure, which method to select, consult with your accountant.

TurboCASH defaults to an average costing basis. This means that if, when purchasing a stock item, the cost price has changed from the price you last specified, simply enter the new cost price. TurboCASH will then average the cost price for you (e.g. if you buy an apple for R1.00 today and tomorrow you buy another apple for R1.50, TurboCASH will calculate the average cost price to be R1.25 per apple).

If you wish to use the latest cost price instead of the average cost price, you need to select the Latest Cost (Cost of Sales) in the Setup - System Parameters - Stock Information (Use Cost of Sales) menu option.

If you do not select Cost of Sales, TurboCASH will not update your cost of sales account and you will not be able to view the gross profit (Sales less Cost of Sales) on your sales transactions. If no cost prices are reflected in the latest or average cost for your stock items, the Cost of Sales Account will be updated with a zero value.

3. Credit Notes When a debtor or a customer has been incorrectly invoiced or returns some goods (already invoiced), you may generate or process a credit note to the debtor or customer. TurboCASH will then, once you post or update the credit note to the ledger, update all the accounts, stock quantities and values, etc. (exactly the opposite effect as that of Invoices). The transactions for a Credit Note is as follows:

3.1 The selling price of the sales transaction on the credit note: (To view the printed Credit Note for these transactions, click here.):





The debtor account will be credited and the sales and VAT account (Output VAT) will be debited with the selling price.

3.2 The cost price of the sales transaction on the invoice:

The cost price (average cost or latest cost) for the sale of a stock item, will be credited to the cost of sales account and the stock control account will be debited.




The transactions on a Credit Note should cancel or reverse the transaction on the invoice for which the credit note is issued.

4. Repeating Invoices - If you have invoices, which are of a repetitive nature, you may select an Invoice or a range of invoices from the Invoice History on the Edit Repeating Invoices menu option and generate invoices. TurboCASH will create new invoices with all the transaction details to the debtor accounts. You may then edit these invoices and post or update them to the ledger.

5. Delivery Notes - You can print a delivery note to ship the invoiced stock items. Debtors or customers usually receive the delivery Note first before they receive the Invoice. A delivery note contains basically the same information as on the invoice, but no amounts will be displayed on the delivery note. The debtors or customers usually sign the delivery notes to acknowledge that they have received the goods. Delivery notes are supporting documents to Invoices.

6. Once the documents are processed, you may edit any of the documents before you post or update the documents to the ledger. You may also need to print documents and delete documents.

Once an invoice has been posted or updated with the incorrect transactions, you need to issue a credit note to correct the incorrect transactions.

If you did not take on any stock items or sufficient stock quantities, you need to update your purchases first before you post or update your invoices. This will ensure that you have sufficient quantities of stock items at hand that your cost prices (average and latest cost) will be updated. When you process your invoices and credit notes, the cost of sales will be calculated more accurately.