Where to record various types of Transaction?
Major Brands of Accounting Software in market record transactions in different modules such as (i) Vendor process module, (ii) Customer Process module, (iii) GL module etc.
Let us state that this method is neither supported by theoretical accounting, nor it is a simple process.
But this method did introduce the integration of Financial Accounting and Inventory/Cost Accounting. Such an integration is still not possible by following theory of Financial Accounting alone.
On the other hand, Soft Accounting System has achieved integration of Financial Accounting and Inventory/Cost/Management Accounting without rotating the user into the roundabouts of vendor process/customer process/GL process etc.
In Soft Retail Accounting, transactions are not recorded on the basis of vendor process, customer process or GL process.
Here transactions are to be recorded on the basis of following types of transactions:
In Soft Accounting, there is only one cash/bank book. In other systems, there are multiple cash/bank books like cash receipt book (AR receipt voucher), Cash payment book (AP Payment voucher) , Bank receipt voucher, bank payment voucher etc.
But … Soft Accounting gives a simplified solution.
In Soft Retail Accounting, there is only one Cash Book. It will record all the receipts/payments from/to ARs/APs whether in cash or through bank.
Please read the Cash Book section of our user-manual from following link:
Thus in Soft Accounting:
AP payment will be recorded in cash book … whether paid in cash or through cheque. AR payment receipt will also be recorded in cash book whether received cash or direct deposit of money by customer in our bank. This cash book can handle as many bank accounts as you choose. Expense payment will also be recorded in cash book whether paid in cash or cheque. Any revenue other than sales will also be recorded in cash book whether received in cash or direct deposited in bank.
Cash book however will NOT record cash sales or cash purchase … Cash sales are to be recorded in sale form, cash purchase to be recorded in purchase form.
similarly, cash book will also NOT record cash sales return or cash purchase return. These things will be recorded in sale return form and purchase return form.