Accounting System Overview
Accounting System
Overview
P.S. Data Steel Service Software software systems are designed for accounting on "ACCRUAL" based system.
The features available in the systems have been designed with inputs from Full time accountants with vast experience in steel industry.
P.S. Data Steel Service Software follows the standard guidelines of financial accounting.
used in any given jurisdiction referred as Generally Accepted Accounting Principles (GAAP).
GAAP set of rules, guidelines & principles of the Accounting Standards is
approved by FASB & AICPA the governing body for all statutory practices.
For more details refer to https://asc.fasb.org/
There are two primary accounting methods a) Cash b) Accrual basis.
Cash basis taxpayers include income when it is received, and claim deductions when expenses are paid.
In steel industry, when you invoice your customer, it is “Revenue” account, and claim your steel purchases as “Expense”.
Accrual basis taxpayers include items when they are earned and claim deductions when expenses.
are incurred. In steel industry, when you purchase steel, you consider that as “Asset”, and consider
to be paid as “Accrual”, Later you may convert that into a receivable, when you invoice your customer,
it is “Revenue” account, and calculate corresponding “Cost” and consider that as “Cost of Goods Sold”,
consider only your true expenses (like telephone bill, travel etc) as “Expense”.
P.S. Data Steel Service Software follows ACCRUAL based accounting system.
Please find below few examples of account posting sequences when a transaction is created.
the accounting entries are automatically posted in the system.
Few accounting screen shots are appended for understanding of various accounting transactions.
Accounting Entries posted in GL for a Material PO on receipt of Material
Accounting Entries posted in GL for a Payable for Steel & Freight-IN
GL Posting for Sales Invoice
GL Posting for Freight OUT Release
GL Posting for Deposit Check from Customer
GL Posting for Writing Check for Payable
COGS - Adjustment
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