The cost of goods sold (CGS) is posted to G/L when the sales transaction is completed and the good sold is posted to G/L. In other words, the cost of goods sold cannot be posted to G/L before the Sales Invoice is posted to G/L. The Journal Slip generated as a result of this transaction contains the cost of material.
G/L account codes to be used to post the cost of goods sold (CGS) can be assigned from different locations within the application:
- Using the CGS G/L account codes option located in the right mouse button menu of the invoice window
- Using the CGS G/L account codes option located in the right mouse button menu of the sales Invoices list
- Using the materials option of the G/L connection codes located in the main records menu of the general ledger section
- Using the G/L accounts option of the material window
The cost of goods sold is posted to G/L by processing the material, mixed case, fixed asset and promotion type lines; the discount, surcharge, service, material class lines and the lines constituting the mixed case material are not processed.
Cost of goods sold can be posted to G/L using "Generate CGS Journal Slip" option located in the right mouse button menu of the Sales Invoices window or the Posting option located in the Operations menu of the General Ledger section.
- Generating CGS Journal Slips from the Sales Invoices Window
Costs of goods sold are individually posted to G/L using "Generate CGS Journal Slip" option located in the right mouse button menu of the Sales Invoices window. This option is available only in the right mouse button menu of Sales Invoices posted to G/L.
When "Generate CGS Journal Slip" is selected, the CGS Journal Slip Generation window where the criteria to be applied to the journal will be specified is opened. The filters and functions of the window are:
Filter | Value |
|---|---|
Posting Control | Will be done / Will not be done |
Line Combining | Yes / No |
G/L Slip General Description | Will be regenerated / Will be taken from posted slip |
G/L Slip Line Description | None / Transaction Number / Document Number / Transaction Type / AR/AP Title / Line comment / Material Description / General Description (1) / Material Code |
Run Cost Maintenance First | Yes / No |
G/L Slip Date Assignment | Posted Slip Date Will be Assigned / Will be Assigned From G/L Slip Date Filter / Date of Related Slip Will be Assigned |
G/L Slip Date | Date entry |
Posting Control: "Will be done" option should be checked on this filter line if the journal slips resulting from the posting transaction would be displayed and recorded after being checked. In this way, each Journal Slip is displayed and saved after being checked.
If "Will not be done" is selected, generated slips are checked directly in the relevant sections and recorded on the posting file.
Line Combining: This filter line is used to define how the lines of the same slip with the same G/L connection code will be posted to G/L. This filter contains "Yes" and "No" options. When "Yes" is selected, lines within the same slip that will be tracked under the same account code are combined and posted to G/L, and displayed on the Journal Slip as a single line.
G/L Slip General Description: The content of the general description of the Journal Slip resulting from posting is specified on this filter line. The filter line contains the following options:
- Will be Regenerated
- Will be Taken from Posted Slip
When "Will Be Regenerated" is selected, the description is regenerated by the application.
If "Will be Taken from Posted Slip" is selected, the description of the slip is transferred into the Journal Slip.
G/L Slip Line Description: This field is used to generate descriptive lines on the G/L Slip resulting from the posting operation. The fields required to be transferred to the G/L Slip as description fields are specified on this filter. Information such as the following titles are checked and selected:
- Transaction Number
- Document Number
- Transaction Type
- Line Comment
- Material Description
- AR/AP Title
- General Description (1)
- Material Code
Run Cost Maintenance First: If the costing is required to run before the posting operation "Yes" is selected on this filter line.
Once the condition is specified on the filter lines, the CGS Journal Slip is completed by clicking "OK" button.
- Generating CGS Journal Slips from the General Ledger Section
CGS Journal Slips can be generated in batch using Posting option located in the Operations menu of the General Ledger section. SMM journal slip generation conditions are specified on the CGS Journal Slip Generation window. The filters and functions of the window are:
Division No: This option is used to post transactions performed in application sections by their divisions. All divisions are checked as default.
Department No: This option is used to post transactions performed in application sections by sections. All sections are checked as default.
Warehouse No: This option is used to post transactions performed in application sections by warehouses. All warehouses are checked as default.
Slip No: This option is used to filter transactions to be posted by slip number or by transaction number. Slips to be processed are specified by making a group or range definition.
Slip Aux. Code: The slip type field can be used to select the slips of specific transactions, or only the transactions with the required Aux. Code can be posted to G/L through filtering by slip aux. code. Slips to be processed are specified by making a group or range definition.
Slip Authorization Code: The slip type field can be used to select the slips of specific transactions, or only the transactions with the required Aux. Code can be posted to G/L through filtering by slip auth. code. Slips to be processed are specified by making a group or range definition.
Slip Type: This option is used to post transactions performed in the sections of the LOGO applications by slip or transaction types. The filter line lists the related slip types depending on the transactions performed. Slips to be posted are selected.
Posting Control: "Will be done" option should be checked on this filter line if the journal slips resulting from the posting transaction will be displayed and recorded after being checked. In this way, each Journal Slip is displayed and saved after being checked.
If "Will not be done" is selected, generated slips are checked directly in the relevant sections and recorded on the posting file.
Line Combining: This filter line is used to define how the lines of the same slip with the same G/L connection code will be posted to G/L. This filter contains "Yes" and "No" options. When "Yes" is selected, lines within the same slip that will be tracked under the same account code are combined and posted to G/L.
G/L Slip General Description: The content of the general description of the Journal Slip resulting from posting is specified on this filter line. The filter line contains the following options:
- Will be Regenerated
- Will be Taken from Posted Slip
When" Will Be Regenerated" is selected, the description is regenerated by the application.
If "Will Be Taken From Posted Slip" is selected, the description of the slip is transferred into the Journal Slip.
G/L Slip Line Description: This field is used to generate descriptive lines on the G/L Slip resulting from the posting operation. The fields required to be transferred to the G/L Slip as description fields are specified on this filter. Information such as the following titles are checked and selected:
- Transaction Number
- Document Number
- Transaction Type
- Line Comment
- Material Description
- AR/AP Title
- General Description
- Material Code
Run Cost Maintenance First: If the costing is required to run before the posting operation "Yes" is selected on this filter line.
CGS Generation Method This field contains the following options:
- Current Costs
- Cost of Differences
When Current Costs is selected, a CGS is generated for the current costs of sales invoices posted to G/L.
When Cost of Differences is selected instead, a CGS is generated for any cost difference occurred due to any reason such as price differences in sales invoices for which CGS is already generated.
Journal Slips resulting from the CGS generation transactions are listed on the Journal Slips window with document type information. CGS slips generated for current costs are listed with the letter "M", and CGS slips for cost of differences are listed with the letter "F".