Re: [WebERP-developers] (no subject)

[Danie B. <br...@b2...>]

Hi Arke

It has to do with accounting.

In reality all bank accounts contains "cash" that is owed to your company by 
the banking institution. Hense it contains a debit. In the case of Petty Cash 
your responsible staff member is playing the part of bank. But the concept 
remains the same. In fact you will find that all assets normaly contain a 
negative amount/debit.

So in short the Petty Cash is not a revenue/income account, it is a control 
total of what you expect to have in the Petty Cash Box.

In order to get the value of sales orders/income excl tax. you will need to 
look in the Setup  section under Sales GL Interface Postingsto see what 
accounts you have selected to be the value of "sales revenue"/"income".

These amounts will be Positive as they reflect the income. Please remember 
that it does not include any taxes payable.

With regards to your question on the Profit and Loss statement. Balance 
accounts (i.e. assets, liabilities and other control accounts do not reflect 
on the P/L statement) Profit/Loss is defined as 
Gross Profit = Income From Sales - Cost of Sales
Net Profit = Gross Profit + Other Income - Overhead Expenses
Here you can see that no assets or liabilities are in any way involved in the 
calculation.

Danie


On Tuesday 24 April 2007 09:04, Anantya Wibowo wrote:
> Dear All,
>
> i have some question regarding sales order,
> when we create sales order and produce invoice, why does the petty cash
> account decrease by the value of sales order?
> and why does it always shows -{the value of sales order} ?
> and how can we make it as a revenue? so we can get a profit and loss in
> trial balance?
> any help is appreciated..
>
> Thnx
> Arke