1. Home
  2. /
  3. User Guides
  4. /
  5. Distribution
  6. /
  7. Accounting
  8. /
  9. Transfer group handling
  10. /
  11. Invoicing
  12. /
  13. (Accounting) Invoice items when...

(Accounting) Invoice items when DC1 Financials is not installed

Related topics

The following describes the accounting transactions the system creates when you invoice items and DC1 Financials is not installed, or if the Update A/R field in the Sales order type table is set to NO and the invoice is not a Cash sales order.

Prerequisites

Invoiced qty 2
Sales price 60.00 SEK
Cost price 34.50 SEK
VAT item 25%

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
820 Sales value Gross   120.00
Sales price * Quantity

60.00 * 2 = 120.00
960 VAT output of order lines   30.00
Sales price * Quantity * VAT percentage of VAT handling code

60.00 * 2 * 0.25 = 30.00

This transaction is the VAT amount for the sales value.
800 Cost of goods sold 69.00  
Cost price * Quantity

34.50 * 2 = 69.00

If the cost type is:

  • Standard cost, the cost price is retrieved from the Standard cost field in the Item file.
  • Average purchase price, the cost price is retrieved from the Average cost field in the Item file.
  • FIFO, the cost price is retrieved from the oldest active FIFO transaction in the FIFO file.
901 Stock value   69.00
Cost price * Quantity

34.50 * 2 = 69.00

The cost price is retrieved as described in Cost of goods sold above.
803 Account receivable 150.00  
Sales Value Gross + VAT output of order lines

120.00 + 30.00 = 150.00

This is the value the customer should pay, which is also printed on the invoice.

Related topics