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12.2.8. Sales Categories

Sales categories are used to identify the general ledger (G/L) accounts to be used when processing the following:

  • Non-inventory invoices

  • Receivables credit memos (optional)

  • Receivables debit memos (optional)

  • Cash receipts (optional)

For example, when creating an invoice for miscellaneous goods or services unrelated to inventory, you must select a sales category—thereby identifying the G/L accounts the sales transaction will be distributed to. To access the Sales Categories master list, go to Sales Categories. The following screen will appear:

Sales Categories master list

The Sales Categories screen displays information on existing sales categories.

12.2.8.1. Sales Category

To create a new sales category, select the NEW button. The following screen will appear:

Create new Sales Category

When creating a new sales category, you are presented with the following options:

Category

Enter an identifying code for the sales category.

Active

Select if the sales category is currently active. Not selecting means the sales category is inactive.

Description

Enter a description to identify the sales category.

Non-Inv. Sales Account

Identify a general ledger (G/L) account to distribute sales revenue to for non-inventory items. This is a revenue account. It will be credited when invoices for non-inventory goods are posted.

Prepaid Account

Specify a G/L account to use for handling prepaid receivables. This is a revenue contra account. If a sales category is used when entering a miscellaneous receivables credit memo, this account will be debited when the credit memo is posted. If used when entering a miscellaneous receivables debit memo, the account will be credited when the debit memos are posted.

Receivables Account

Specify a G/L account to use for handling customer deposits. This is an asset account. If a sales category is used when applying a cash receipt to a customer invoice, this account will be credited when the cash receipt is posted.