| Bearing in mind what we expected to find in a sales | | | | this method, the user identifies specific invoices, and |
| ledger, we can say typical data input into sales ledger | | | | credits individual payments against specific invoices. |
| system is as follows. | | | | Late payments of individual invoices can be identified |
| Amendments | | | | and chased up. The customers outstanding balance is |
| Amendments to customer details, ex change of | | | | the sum of the unpaid open items. The open item |
| address, change of credit limits etc | | | | method follows best accounting practice, but it is more |
| Insertion of new customers | | | | time consuming than the balance forward method. |
| Deletion of old "not-active" customers | | | | Outputs from a Sales Ledger System |
| Transaction data relating to: | | | | Typical outputs in a computerized sales ledger are as |
| Sales transaction, for invoicing | | | | follows. |
| Customer payments | | | | Day book listing. A list of all transactions posted |
| Credit notes | | | | each day. This provides an audit trail i.e. it is information |
| Adjustments (debit or credit items) | | | | which the auditors of the business can use when |
| Some computerized sales ledgers produce invoices, | | | | carrying out their work. Batch and control totals will be |
| so that basic sales data is input into the system. But | | | | included in the listing. |
| other business might have a specialized invoicing | | | | Invoices. (if the package is one which is expected |
| module, so that the sales ledger package is not | | | | to produce invoices) |
| expected to produce invoices. The invoice details are | | | | Statements. End of month statements for |
| already available (as output from the specialized | | | | customers. |
| module) and are input into the sales ledger system | | | | Aged debtors list. Probably produced monthly. |
| rather than basic sales data. | | | | Sales analysis report. These will analyze sales |
| Process in a Sales Ledger System | | | | according to the sales analysis codes on the sales |
| The primary action involved in updating the sales | | | | ledger file. |
| ledger is modifying the amount outstanding on the | | | | Debtors reminder letters. Letters can be produced |
| customers account. How the amount is modified | | | | automatically to chase late payers when the due date |
| depends on what data is being input. When processing | | | | for payments goes by without payment having been |
| starts, the balance on an account is called the brought | | | | received. |
| forward balance. When processing has finished, the | | | | Customer lists (or perhaps a selective list). The list |
| balance on the account is called the carried forward | | | | might be printed on to adhesive labels, for sending out |
| balance. These terms are often abbreviated to bring | | | | customer letters or making material. |
| forward and caught forward. | | | | Response to enquiries. Perhaps output on to a |
| What a computer does is to add or subtract | | | | video screen rather than as printed copy, for fast |
| whatever you tell it to from the b/f balance, and end | | | | response to customer enquires. |
| with a caught forward balance. This method of | | | | Output onto disk file for other modules. Example, to |
| updating customer accounts is called the balance | | | | the stock control module and the nominal ledger |
| forward method. | | | | module, if these are also used by the organization and |
| Most systems also offer users the open item method | | | | the package is not an integrated one. |
| of processing the data, which is much neater. Under | | | | |