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Sales Ledger, VAT & CCL

The Sales Ledger component of ERS is principaly a book for recording transactions used by the accounts receivable department. ERS ensures that it maintains a record of all accounting transactions associated with the billing of customers.

The Sales Ledger contains a separate account for each credit customer, tracking that customer’s balance separately.

The principal transaction types for sales ledger that the system recognises are invoice (a debit), credit note (a credit), receipt (a credit) and payment (a debit). Payments on the sales ledger are the result of either a reversal of a receipt from the customer or payment of a refund to the customer.

A Sales Ledger Account is automatically associated with each Master Customer as soon as it is created.

A formal record of all the debits and credits relating to each Master Customer is maintained on this account. Each transaction is time-stamped so that it is possible to identify retrospectively a view of the account at any time in the past. This facilitates the sub-division of the ledger into accounting or other reporting periods.

Invoicing

Each time any Invoice or Credit Note is issued, details of the transaction are posted to the Sales Ledger Account of the Master Customer associated with the transaction. The details posted include the total amount charged on the invoice and a unique identifier associated with the invoice to facilitate analysis of that amount by reference to the invoice details held elsewhere in ERS.

Every Invoice and Credit Note is allocated a unique identifier from a sequence.

Receipts

Each time any Receipt or Payment is made, details of the transaction are posted to the Sales Ledger Account of the Master Customer associated with the transaction. The details posted include the total amount and a unique identifier associated with the transaction to facilitate analysis of that amount by reference to the details held elsewhere in ERS.
Any receipts that cannot be attributed to a Sales Ledger Account are recorded against a Suspense Account.

Allocation

Where possible ERS ensures that any sum recorded on a credit transaction is allocated against a debit transaction in order to identify which amounts of an account balance are outstanding and for how long they have been outstanding.

Bank Reconciliation

Receipts, receipt reversals and payments entered on the Sales Ledger or on a deposit account are posted to the cash book.

Posting to the cash book is done shortly after entry of new receipts into the Sales Ledger so that bank reconciliation can be performed against the daily bank statement on the same day.

Receipts created due to direct debit requests are summarised to a single posting per request file per request date (the same level of detail that they are presented on the bank statement).

Receipts for BACS transfers, cheques, reversals for these receipts and DD rejections are posted individually with supporting narrative text.

A user can then compare and match the figures from the accounting records against those shown on a bank statement.

Sales Ledger View

One of the key features of ERS is an integrated customer-centric user interface. This includes a view of all Sales Ledger transactions with facilities to filter, sort and drill-down through data and link to associated transactions and information.