Subject Area Concepts Logical 04100 - Financial Ledger Retail Transaction defines the relationship between a RetailTransaction, its RetailTransactionLineItems, the FinancialTransactionJournalEntrys and the various entities which provide the rules that govern how the transaction is to be financially decomposed, classified and assigned to the appropriate StoreFinacialLedgerAccounts. The table below presents a conceptual model of how each RetailTransactionLineItem type may be classified for accounting purposes. Each retailer may choose to handle these line items differently from the example presented. Retail Transaction Line Item Accounting Disposition Retail Transaction Line Item Type | Debit | Credit | Directly Impact Stock Ledger | Sale Return Line Item | Cost of Goods Sold Markdown | Sales Revenue Markup | Updates sales and mark up or mark down for retail method valuation of inventory | Employee Discount | Employee Discount Expense | | | Tax | | Tax Liability | | Gift Certificate (purchase) | | Gift certificate liability | | Miscellaneous Fee | | Service Fee Income | | Discount | Discount Expenses Mark down | | Discount expense, as used here is a non-inventory promotional/advertising expense while markdown is a reduction in retail valuation of inventory. | Payment on Account | Cash | Accounts Receivable | | Deposit/Redemption | Cash Deposit Return (reverse liability) | Deposits (liability) Cash | | Accounts Receivable/Payable | Account Receivable | | | Tender | Cash (or other tender debit) | | | A FinancialTransactionJournalEntry is created for each FinancialLedgerAccount affected by the line items of a RetailTransaction. The table shown here presents the basic pattern for the journal entries derived from a RetailTransaction. |