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



Directly Impact Stock Ledger

Sale Return Line Item

Cost of Goods Sold


Sales Revenue


Updates sales and mark up or mark down for retail method valuation of inventory

Employee Discount

Employee Discount Expense





Tax Liability


Gift Certificate (purchase)


Gift certificate liability


Miscellaneous Fee


Service Fee Income



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


Accounts Receivable




Deposit Return (reverse liability)

Deposits (liability)



Accounts Receivable/Payable

Account Receivable




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.