Logical 04100 - Financial Ledger - Retail Transaction View

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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.