Introduction
In the world of business, staying on top of your financial records is crucial. Empress, a comprehensive business management tool, offers an array of features to help you do just that. Let’s delve into how you can use one such feature, Accounts Posting, to manage your stock and related expenses effectively.
Introduction to Accounts Posting
When you purchase items, whether for your stock or fixed assets, the value of these items needs to be recorded. This process is called Accounts Posting. Similarly, when you sell these items, the cost of goods sold is also recorded. Accurate accounts posting allows you to have a clear understanding of your business’s financial health.
How to Use Accounts Posting through Purchase Receipt
When you receive a shipment of items from your supplier, you’ll record it using a Purchase Receipt in Empress. This increases your stock balance and triggers two key actions:
- Your Warehouse account is debited, showing an increase in your stock.
- Your Stock Received But Not Billed account is credited.
Empress also records a negative expense under either the “Valuation” or “Total and Valuation” category in the taxes and charges table. This is done to avoid recording the same expense twice.
How to Use Accounts Posting through Purchase Invoice
Once you receive a bill from your supplier, you’ll issue a Purchase Invoice in Empress against the Purchase Receipt. This action:
- Debits your Stock Received But Not Billed account.
- This step zeroes out the balance in the Stock Received But Not Billed account, meaning you’ve accounted for the billing of all received stock.
However, if you still have a balance in the Stock Received But Not Billed account, this indicates that you have stock for which a receipt has been issued, but billing is still pending.
Conclusion: How Accounts Posting Enhances Business Processes
Understanding and using the accounts posting feature in Empress is crucial for maintaining accurate financial records. By accurately tracking the flow of goods from purchase to sale, Empress offers you a clear picture of your business’s financial health. This information is invaluable in making informed business decisions and planning for future growth.
For additional information on Empress’s features, or any assistance, please visit our support page or reach out to our dedicated customer service team. Empress is committed to making your business management as seamless as possible.