Basics Of Accounting

• Accounting means the systamatic way of recording ,reporting and analysis of financial transactions of a business.
• Accounting plays a very important role in each and every organisation.Because,managers has to know the gains and losses of a company.

Types of Accounting :

• Accounting classified into 3 types :
1. Real Accounts.
2. Personal Accounts.
3. Nominal Accounts.

Real Accounts :

• The accounts which are related to the assets(tangiable / non-tangiable) called as 'Real accounts'.
• Tangiable :Tangiable means assets which are physically exists.
• Examples : Buildings,Vehicles,Machines,etc.
• Non-tangiable : The assets which are not physically not exists.But they have value.
• Examples : Goodwill, Trademarks,patents,etc.

Debit :What Comes In.

Credit :What goes Out.

Personal Accounts :

• The accounts which releated to the persons or organisations called as 'Personal accounts'.
• Natural Accounts : The accounts which are related to the persons(living things) called as natural accounts.
• Examples :Humans,pet animals,etc.
• Artificial Accounts : The things which are related to the organisations,lands,etc called as artificial accounts.
• Examples :Pvt ltd companies,LLc's,LLP's,etc.

Debit:Receiver. 

Credit:Giver.

Nominal Accounts:

• The accounts which are related to the money(incomes/gains and expenses/losses) called 'Nominal Accounts'.
• Income / Gain :The amount which comes into the organisastion is called income.
• Expenses / losses :The amount which goes out from the organisation is called expenses.

Debit :Expenses / losses.

Credit :income / gains.

Sales Cycle in QuickBooks Software

• In quickbooks sales cycle will be processed in 2 ways.
• Case 1 : 
• If customer want to pay the amount for purchased items at that time supplier will not go with the whole sales cycle.
• Supplier will give the sales receipt after customer makes the payment.
• If you want to go sales receipt :

• Case 2:
• If customer want to pay the money after few days then whole sales cycle will processed.
• Quickbooks online editor will not provides the sales order, pick list and packing list options.
• Quickbooks pro version will provide the option for sales order creation.
• For creating the sales order quickbooks provides the "Estimate" option.

Estimate :

• Sales order will create by using "Estimate".
• If you want to create the sales order, do like below:

Invoice :

• After creating the sales order if customer accepting the prices of the products and quantity mentioned in sales order then supplier will create the invoice.
• We can directly copy the sales order details from 'Estimate' form to invoice by clicking on 'copy to invoice' button at the top right corner of the sales estimate page.

Receive Payments :

• After receiving the goods, customer will pay the money to the supplier.
• Supplier will mention in his accounts about customer payment details.

Sales Cycle in Tally Software

• Tally sales cycle contains the following steps:
• In tally sales cycle, starts with the sale order directly.Whoever asks for the quotation for those people separately create the quotation.

Quotation :

• Create separate voucher for quotation then only tally allows to create the Quotation for particular customer.
• Quotation contains the details like,quotation id ,buyers details,goods details.
• If you want to create the quotation go to,Inventory features --> voucher type(ex:sales) --> quotation.

Sale Order :

• Sale order will create after accepting the quotation by the customer.
• Go to, gateway of tally --> Transactions --> Order vochers -->Sales order.

Delivery Note :

• Delivery note also known as packing list.which contains the details about goods which are going to delivery.
• Go to,  gateway of tally --> Transactions --> Inventory vouchers --> Delivery note.

Sales Invoice :

• Sales invoice is the document for payment.
• Go to,gateway of tally --> Transactions --> Accounting vouchers-->sales.

Rejection In :

• Sometimes customer will receive the faulty goods at that time he will return the goods to the supplier.
• Go to,  gateway of tally --> Transactions --> Inventory vouchers --> Rejection In.

Receipts :

• After receiving the goods customer will make the payment to the supplier.
• Supplier will notice those details into his accounts receivables.
• Go to, gateway of tally --> Transactions --> Accounting vouchers-->receipts.

Disadvantages :

• Tally software doesn't provide the option for storing the customers details who are in hold . 
• Tally sales cycle is difficult to maintain because it is not step-by-step procedure.

Sales Cycle in Peachtree Software

• Peachtree sales cycle starts with the quotation and after agree the quotation by the customer it will create the sales order.
• Peachtree contains the 4 phases in sales cycle.
• Sales Quotation(pre-sales).
• Sales Order Creation.
• Invoice.
• Receive the payments.

• Peachtree home page is shown like below : 

Sales Order Creation :

• In peachtree sales cycle first step is sale order creation.
• If customer agrees with the quotation sended by the supplier then only sale order is created.
• Go to, Sales Orders --> New Sale Order.

Invoice :

• After creating the sale order, supplier will create the Invoice for sale order.
• Invoice is the bill for payment for purchased items.

Receive Payments :

• After receiving the goods, customer will make the payment to the supplier for purchased items.
• Supplier will record the payment details in his account.

Advantages :

• Peachtree provides the simple sales cycle / process.

Disadvantages :

• Peachtree software pick ticket and packing list option is not provided.