Customers And General Ledger

All transactions that increase or decrease your customer account balances will update your general ledger debtor account code. Raising an invoice or paying an invoice, or issuing a credit note will produce journals that will effect the debtors account.

For example, if you enter an invoice in CAPITAL Office for $100 that is assigned to an account customer, CAPITAL will locate the applicable general ledger account code. (How this is done is discussed in the section general ledger sets.) It then creates a debit journal for $100 and assigns it to this code. CAPITAL Office knows when to debit or credit a general ledger account--it understands the rules of accounting. Such entries are referred to as automatic journals.

Obviously, it will also create journals for other account codes in your chart of accounts that correspond to stock, cost of sales and others, in order to balance the debit or credit journal assigned to the debtors code.

If you have been operating CAPITAL Office for some time then you are probably aware that you can delete customer invoices through customer entries, without affecting any stock associated with that transaction. In other words, stock is not placed back into stock control if the transaction is removed from the system via a "delete". As a result, you should not delete customer invoices if the general ledger is active. If the security system is in use it is recommended that this feature be disabled for all users except the system administrator.