On account postings with respect to BS and PNL

On account set to à PNL 

Revenue is posted to à Invoiced – On account (CR)

Accounting entry is as follows:

DR Accounts Receivable

                           CR Invoiced – On account

                           CR VAT payable

On account set to à BS 

Revenue is posted to à WIP Invoiced – On account (CR)

Accounting entry is as follows:

DR Accounts Receivable

                           CR WIP invoiced -On account

                           CR VAT payable

On account set to à PNL with Deduction type transaction

Revenue is posted to à Invoiced – On account (CR)

Accounting entry is as follows:

DR Accounts Receivable

                           CR Invoiced – On account

                                       CR VAT payable

When deductions included at the time of invoice posting

DR Invoiced – On account  

   CR Invoiced revenue

On account à BS with Deduction type transaction

Revenue is posted to à WIP Invoiced – On account (CR)

Accounting entry is as follows:

DR Accounts Receivable

                           CR WIP invoiced - On account

                           CR VAT payable

When deductions included at the time of invoice posting

DR WIP Invoiced – On account

CR Invoiced revenue

Thanks

Sarang