Cash Order

Cash Orders

Cash orders are similar to the more commonly used sales orders. There are, however, important differences. In a sales order an account customer is not billed until at least part of the original order is shipped.

In a cash order system, there are usually no special account provisions made for the customer. The customer may leave a deposit, which is immediately recorded as part of the day's cash takings, and goods are transferred (usually) to the back order system for delivery at some later point.

CAPITAL does not record an expense as having occurred when the cash order is initially entered. It is assumed at some later date that a zero value invoice or delivery docket will be raised (typically produced automatically from the Back Order Control Centre) and the cost of the shipped goods are recorded at this 'release' stage.

When generating a Sales Report remember that CAPITAL will only acknowledge cost of goods sold at the point of delivery. It is very useful, however, to be able to find out the estimated cost and estimated profit for a cash order. (The term 'estimate' is used because the actual cost of goods may vary by the time shipping occurs.) Use the Cash Ordering Report for this purpose.

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