The Sales Order is a confirmation document sent to the customers before delivering the goods

or services. Sales Order (SO) can be created once the quote is accepted by your prospective
customer (potential) and the Purchase Order (PO) is sent by the customer for further
processing. After receiving the PO, the customers may request SOs to know the exact date of
delivery of the goods or services. Also the inventory/production department looks at the list of
Sales Orders to see what needs to be shipped out and when. After the order is shipped and
delivered to the customer an invoice is generated from the sales order for billing purposes. In
general, SO contains the SO number, date, line items (products) including the quantities and
prices based on the PO, Billing address, Shipping address, and the Terms & Conditions.

Net credit sales

August 19, 2017
The definition of net credit sales is those revenues generated by an entity that it allows to
customers on credit, less all sales returns and sales allowances. Net credit sales do not
include any sales for which payment is made immediately in cash. The concept is useful as
the foundation for other measurements, such as days sales outstanding and accounts
receivable turnover, and also as an indicator of the total amount of credit that a company
is granting to its customers. Net credit sales are likely to be highest when a company has a
loose credit policy, where it grants large amounts of credit to even those custo mers with
suspect payment histories.

Key definitions are:

 Sales returns. A credit issued to a customer, caused by a problem with a shipment or service
provided to that customer.
 Sales allowances. A reduction in the price charged to a customer, due to a problem with the
sale transaction not involving the delivered goods or service.

Net Credit Sales Formula

The formula for net credit sales is:

Sales on credit - Sales returns - Sales allowances = Net credit sales

 It is easiest to calculate net credit sales when cash sales are recorded separately in
the accounting records from sales on credit. Also, sales returns and sales allowances
should be recorded in separate accounts (or at least aggregated into a separate account).

A potential problem with this calculation is that some of the sales returns and allowances
may be related to sales that were originally paid in cash (not with a credit sale). If so, you
will need to back out these returns and allowances from the calculation. Otherwise, the
resulting net credit sales figure will be too low.

Net Credit Sales Example

For example, the Anderson Boat Company (ABC) generated $100,000 of gross sales in its
most recent month. Of this amount, customers paid $20,000 in cash for new boats. During
the month, ABC issued a refund of $5,000 to a customer who returned a boat, and also
granted a sales allowance of $1,000 to a customer in exchange for not returning a boat
having a faulty paint job. Therefore, ABC's net credit sales were $74,000 ($100,000 gross
sales - $20,000 cash sales - $5,000 sales returns - $1,000 sales allowances).

The accounts receivable aging

August 29, 2017
An accounts receivable aging is a report that lists unpaid customer invoices and
unused credit memos by date ranges. The aging report is the primary tool used by
collections personnel to determine which invoices are overdue for payment. Given its use
as a collection tool, the report may be configured to also contain contact information for
each customer. The report is also used by management, to determine the effectiveness of
the credit and collection functions. A typical aging report lists invoices in 30 -day "buckets,"
where the columns contain the following information:

 The left-most column contains all invoices that are 30 days old or less
 The next column contains invoices that are 31-60 days old
 The next column contains invoices that are 61-90 days old
 The final column contains all older invoices
The report is sorted by customer name, with all invoices for each customer itemized
directly below the customer name, usually sorted by either invoice number or invoice date.
A sample report follows, though without the individual invoice detail that is usually found
in such a report:
0-30 31-60 61-90 90+
Customer Name Total A/R Days Days Days Days

Abercrombie $15,000 $10,000 $5,000

Bufford Inc. 29,000 20,000 9,000

Chesterton Co. 83,000 47,000 21,000 12,000 3,000

Denver Brothers 8,000 8,000

Totals $135,000 $57,000 $46,000 $21,000 $11,000

If the report is generated by an accounting software system (which is usually the case),
then you can usually reconfigure the report for different date ranges. For example, if
payment terms are net 15 days, then the date range in the left-most column should only be
for the first 15 days. This drops 16-day old invoices into the second column, which
highlights that they are now overdue for payment.

The report primarily contains invoices, but it may also contain credit memos that have not
been used by customers, or which have not yet been matched against an unpaid invoice.

The aging report is also used as a tool for estimating potential bad debts, which are then
used to revise the allowance for doubtful accounts. The usual method for doing so is to
derive the historical percentage of invoice dollar amounts in each date range that usually
become a bad debt, and apply these percentages to the column totals in the most recent
aging report.

For example, a company historically experiences 1% bad debts on items in its 30 day time
bucket, 5% bad debts in its 31-60 day time bucket, and 15% bad debts in its 61+ day time
bucket. Its most recent accounts receivable aging report contains $500,000 in the 30 day
time bucket, $200,000 in the 31-60 day time bucket, and $50,000 in the 61+ day time
bucket. Based on this information, the company should have an allowance for doubtful
accounts of $22,500, which is calculated as:

($500,000 x 1%) + ($200,000 x 5%) + ($50,000 x 15%) = $22,500

An additional use of the aging report is by the credit department, which can view the
current payment status of any outstanding invoices to see if customer credit limits should
be changed. This is not an ideal use of the report, since the credit department should also
review invoices that have already been paid in the recent past. Nonetheless, the report
does give a good indication of the near-term financial situation of customers.

Finally, the company's auditors may use the report to select invoices for which they want
to issue confirmations as part of their year-end audit activities.

Similar Terms

An accounts receivable aging is also known as a schedule of accounts receivable. A

variation is that this schedule may contain a simple listing of receivables by customer,
rather than breaking them down further by age.

Credit memo
November 15, 2017
A credit memo is a contraction of the term "credit memorandum," which is a document
issued by the seller of goods or services to the buyer, reducing the amount that the buyer
owes to the seller under the terms of an earlier invoice. The credit memo usually includes
details of exactly why the amount stated on the memo has been issued, which can be used
later to aggregate information about credit memos to determine why the seller is issuing
them.

A credit memo may be issued because the buyer returned goods to the seller, or there is a
pricing dispute, or a marketing allowance, or other reasons under which the buyer will not
pay the seller the full amount of the invoice. The seller records the credit memo as a
reduction of its accounts receivable balance, while the buyer records it as a reduction in
its accounts payable balance.

The seller should always review its open credit memos at the end of each reporting
period to see if they can be linked to open accounts receivable. If this is allowed by the
accounting software, it reduces the aggregate dollar amount of invoices outstanding, and
can be used to reduce payments to suppliers.

If the buyer has not yet paid the seller, the buyer can use the credit memo as a partial
offset to its invoice-based payment to the seller. If the buyer has already paid the full
amount of the invoice, the buyer has the option of either using the credit memo to offset a
future payment to the seller, or as the basis for demanding a cash payment in exchange for
the credit memo.

A credit memo may be considered an internal credit memo, in which case no copy is sent
to the customer. This approach is typically used when the company is writing off an
outstanding receivable balance.

Similar Terms

A credit memo is also known as a credit memorandum or a credit note.

A sales analysis report shows the trends that occur in a company's sales volume over time.
Managers often use sales analysis reports to identify market opportunities and areas where
they could increase volume.

A sales analysis report shows the trends that occur in a company's sales volume over time. In its
most basic form, a sales analysis report shows whether sales are increasing or declining. At any
time during the fiscal year, sales managers may analyze the trends in the report to determine
the best course of action. Managers often use sales analysis reports to identify market
opportunities and areas where they could increase volume. For instance, a customer may show
a history of increased sales during certain periods. This data can be used to ask for additional
business during these peak periods

Maintaining complete, correct, and current information on customers can help AR ensure a
smoother flow of incoming cash and avoid potentially costly errors—improving the bottom line
of the company.

Show

INVENTORY MASTER FILE

Use this application to account for each part in various inventory accounts and contracts. You can track company-
owned and contract-specific inventory as well as GFE/GFM. This file stores the default location, quantities, and
costs of each part for all accounts under which each part is managed. You can also use this application screen to
clone existing inventory accounts or part numbers to be used as a template when establishing new part numbers.
Use this application during initialization and when additions or changes are made to the Inventory Master File. You
must establish parts in the Part Master Files screen in the Product Definition module before you enter them in this
application screen.
If the Inventory Costing Method selected in the Inventory Control File screen is "FIFO" or "LIFO", an initial cost
record will automatically be created in the LIFO Data File or the FIFO Data File screens when the part is added in
this application screen.

Inventory Account
Enter the inventory account number for which you wish to track inventory. Only inventory accounts that have been
set up in the Inventory Accounts File screen will be accepted in this field.
The inventory accounts entered may be for company-owned raw materials and finished goods accounts, inventory
for a specific contract and task or GFE/GFM accounts.
The system will validate active status in the Chart of Accounts File screen in the General Ledger module for
inventory type 1 and 4, and the Contract Master File screen in the Contracts & Pools module for inventory type 6
accounts.

Account Type
The type of account, from the Inventory Accounts File screen, is displayed automatically and cannot be changed
here. Valid inventory account types are "1," "4," and "6."

Part
Enter the main part number established in the Part Master Files screen in the Product Definition module. This is a
16-character alphanumeric field. When the part number is entered in this field, the system retrieves information
about the part from the Part Master Files.

Revision
Enter the revision number in this field. The revision number is a three-character alphanumeric field.

Unit of Measure
The Stocking U/M from the Part Master Files screen in the Product Definition module is displayed in this field.
Location
Stockroom locations can be managed using two different methods. You can store one stockroom location per part
in the Inventory Master File. This stockroom location is treated throughout Deltek GCS Premier only as a reference
in reports. Under this method, the Location Master File screen is not initialized, and inventory cannot be reported
by location or transferred among locations.
The second method of handling stockroom locations is to establish them in the Location Master File and select the
location tracking indicator in either the Part Master File or Inventory Master File. Location tracking provides
detailed reporting by stockroom location throughout Inventory Control. Through this method all inventory
transaction screens will prompt you for the specific stockroom location from or to which the part is being
moved. The Enter/Edit Location-to-Location Transfer screen may be used to move inventory from one location to
another.
The location code that is entered here will act as a default location on all inventory transaction screens. You can
enter a 12-character location code that is divided into three sets of four characters for each part number. By
assigning some internal logic to this code, you can generate stocking lists, count sheets, discrepancy reports, and
pick lists that are not only sorted by location code but also serve to organize the work flow through the stockroom.
For example, location code ROW1-SEC2-BIN3 could denote the location row 1, section 2, and bin 3.

Quantity on Hand
When the system is initialized, you can enter the initial balance in this field or in the Edit Starting Inventory
Balances screen. This field is then updated automatically by the system when the following inventory transactions
are entered and processed:

 Stock Material Receipts screen and the Enter/Edit Inventory Receipts screen - The quantity on hand is
increased as inventory is received and receipts recorded in the system, and decreased by negative
receipts.

 Enter/Edit Account Issues screen - The quantity on hand is reduced as items are issued from inventory,
and increased by negative issues.

 Enter/Edit Account Transfers screen - The quantity on hand is increased for the Transfer To account and
decreased for the Transfer From account.

 Physical Discrepancies and Adjustments Creation screen and the Enter/Edit Inventory Adjustments screen
- The quantity on hand is either increased or decreased as adjustments are made to inventory.

 Enter/Edit Location-to-Location Transfers – The quantities on hand at each location are updated by the
amounts transferred. However, the overall quantity on hand for the inventory item will not be updated.
The quantity on hand can also be updated, when it reflects the beginning balance, in the Edit Starting Inventory
Balances screen.

Quantity Reserved
You can update the reserved quantity in the Enter/Edit Account Reservations or the Enter/Edit Account Issues
screens.
The quantity reserved is used in several places throughout the system:

 Enter/Edit Account Issues screen - The quantity reserved is displayed as the quantity available for the
account that reserved the items. When the reserving account issues the inventory, the quantity reserved
is updated accordingly.

 Stock Status Reports - The quantity reserved is displayed on the stock status reports and is deducted from
the quantity-on-hand in calculating the net quantity available.

 Reorder Report screen - The quantity reserved is displayed on the Reorder Report and is used to calculate
the net quantity available. The calculation takes the quantity on hand, subtracts the quantity reserved,
and adds the quantity on order to show the net quantity available.

 Inventory on Order Report screen - The quantity reserved is displayed on this report and is used to
calculate the net quantity available.

Quantity on Order
This field is updated automatically when you enter purchase orders in the P.O. Process tab of the Purchasing &
Receiving module. The quantity on order is added to the quantity on hand to determine the net quantity available
on the Reorder Report. (The net quantity available on the Reorder Report is also reduced by the quantity reserved,
if any.) The quantity on order is relieved by the Stock Material Receipts screen and the Enter/Edit Inventory
Receipts screen.
Quantity on Requisition
The quantity on requisition is updated automatically when a requisition is entered into the system for a particular
item. Requisitions are entered manually in the Enter/Edit Purchase Requisitions screen in the Purchase
Requisitions module. The quantity on requisition will be relieved when purchase orders are created from purchase
requisitions through the Generate Purchase Orders screen in the Purchase Requisitions module.

Safety Stock
Safety stock is used in order planning functions within Deltek GCS Premier.
The safety stock level acts as a minimum quantity that the system will use when generating the Reorder Report
screen. When running the Reorder Report, you can include items where the net available is less than the safety
stock. The suggested order quantity is calculated as the maximum stock quantity desired less the quantity on
hand. Both the maximum desired and the quantity on hand must be entered for the Reorder Report to be
completely accurate.

Max Stock Desired

The maximum stock desired acts as a maximum quantity that the system will use in generating the Reorder
Report. When running the Reorder Report, you can include items where the net available is less than either the
reorder level or the maximum stock desired. The suggested order quantity is calculated as the maximum stock
quantity desired less the quantity on hand. Both the maximum desired and the quantity on hand must be entered
for the Reorder Report to be completely accurate.

YTD Usage
If you are initializing the system in the middle of your fiscal year, enter the YTD usage in this field. The year-to-
date usage is tracked in the system by fiscal year.

Last Year Usage

Enter the total usage of the item during the last year. This field is updated by the system during the Inventory
Transaction Reconciliation process.

Part Balance
The system computes and displays the value of this item. The part balance is computed using the selected costing
method and the current quantity on hand from the Inventory Master File.

Last Unit Cost

If you use last cost, enter the last unit cost during system initialization or when adding new inventory items to the
Inventory Master File. See Special Topic IN-3, "Accounting for Cost of Materials," for a detailed explanation of the
calculation of last cost.
Last cost is updated only when new receipts are entered into the system. This field is not updated when inventory
transactions are recorded while in the Change mode. A change to an earlier transaction would then erase a last
cost value from the latest transaction. For this reason, last cost is not updated when adjustments are entered.
If you are using a costing method other than last cost, this field is updated for reference purposes.

Note: This costing method is not approved in the Cost Accounting Standards.

Average Unit Cost

Enter the average unit cost for this item. This field should be updated during initialization of the system. See
Special Topic IN-3, "Accounting for Cost of Materials," for a detailed explanation of the calculation of average cost.
Average cost is recalculated by dividing the part balance by the quantity on hand.
If you are using a costing method other than average cost, this field is updated for reference purposes.

Standard Unit Cost

Enter a standard unit cost in this field to be used for reference and reporting purposes only. The Inventory Control
module is not a "standard costing" system. Enter this information during system initialization or when adding new
inventory items to the Inventory Master File.
The standard cost can be updated in the Update Standard Cost From Last Purchase Price screen or the Update Part
Master/Inventory Master Standard Cost screen menu in the Product Definition module.

Counting Cycle
You can assign each part number to a counting cycle. This is a one-character alphanumeric field. Once inventory
cycles are established, you can then print count sheets by counting cycle. The frequency of movement and dollar
value of each inventory item normally determines the frequency of its counting cycle.
Pre-Count Quantity
Enter a value in this application screen or set the precount quantity by one of two methods. You can set it when
you print a count sheet in the Item Count Sheets screen or you can set it separately in the Set Precount Quantities
screen. The value that is established here is the current quantity on hand from the Inventory Master File. This
quantity is the value that is compared with the actual count. A discrepancy between the precount quantity and the
actual count will result in an inventory adjustment that will update the quantity on hand.
This field is set to zero after adjustments are created in the Physical Discrepancies and Adjustments Creation
screen.

Actual Count
This field is updated when you enter physical counts in the Enter/Edit Actual Counts screen. This quantity is
compared with the Pre-Count Quantity. A discrepancy between the physical count and the pre-count quantities
results in an inventory adjustment that will update the quantity on hand. This field is set to zero after adjustments
are created in the Physical Discrepancies and Adjustments Creation screen.

Last Physical Count

Enter the date the part was last included in a physical count. You should enter the date when you initialize the
system or when you add a new part to the Inventory Master File. The system defaults to the system date (i.e.,
today's date), which can be overridden. The system will automatically update this date with the current system
date when you create adjustments from the physical discrepancy reporting in the Enter/Edit Inventory Adjustments
screen.

Last Activity, Last Transaction

Enter the last activity date in this field when you initialize the system or when making additions to the Inventory
Master File. The system defaults to the system date (i.e., today's date) if no date is entered. Activity is defined as
either a receipt or an issue. Adjustments are not recognized, so that the Inactive Items Report screen will reflect
inactive items accurately.
An activity type is assigned by the system to each transaction and is initialized along with the activity date. The
activity types are:
B - Beginning Balance
I - Issue to Account
P - Purchase Order Receipt
T - Transfer

Tracking

Location
Select this check box to track this part by stockroom location, as established in the Location Master File screen. If
you enter "Y" (Yes), you can enter, in every transaction screen, the specific stockroom location from or to which
the item is moving. Leave this check box blank to disable location tracking.
This field will override the Location Tracking flag set at the part level in the Part Master Files screen in the Product
Definition module. This check box is automatically selected if the Location tracking check box in the Part Master
Files screen is selected and at least one of this item has been stocked to a valid location.

Lot
Select this check box to track this part by lot number. If you select this check box, the lot number(s) for this part
will be required in every transaction screen.
This field will override the Lot Tracking flag set at the part level in the Part Master Files screen in the Product
Definition module.

Serial
Select this check box to track serial numbers for this part. When this check box is selected, you can enter the serial
number or numbers used for this part in every transaction screen.
The flag set here will override the Serial Tracking flag set at the part level in the Part Master Files screen in the
Product Definition module.
master file

A collection of records pertaining to one of the main subjects of an information

system, such as customers, employees, products and vendors. Master files
contain descriptive data, such as name and address, as well as summary
information, such as amount due and year-to-date sales. Contrast
with transaction file. See master data management.

Although there can be many more, following are the typical fields in a business
master record. The "key" fields are generally indexed for matching against the
transaction records as well as fast retrieval for queries. The account number is
usually the primary key, but name may also be primary. There can be secondary
indexes; for example, in an inverted file structure, almost all the fields could be
indexed. See transaction file for examples of transaction records.