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The following describes the accounting transactions the system creates when you invoice FOC items that are connected to base lines and dependent lines. During invoicing, the dependent FOC item line affects its base line in terms of costing. There can be different scenarios, depending on when the base line for FOC and the dependent FOC item line are invoiced:
- Base line and dependent FOC item line are invoiced at the same time.
- Base line is invoiced first and the dependent FOC item line is backlogged. In the next step, the dependent FOC item line is invoiced.
- Dependent FOC item line is invoiced first and the Base line is backlogged. In the next step, the Base line is invoiced.
Scenario 1: Base line and dependent FOC line are invoiced at same time
In this example, one order line for Item A with quantity of five units creates a second dependent FOC item line with a quantity of two units.
Prerequisites
| Quantity |
5 |
| Sales price |
800.00 GBP |
| Cost price |
25.00 GBP |
| FOC quantity |
2 |
| FOC sales price |
0 (FOC) |
| FOC cost price |
25.00 GBP |
Created transactions
| Transaction type |
Description |
Amount
Debit |
Amount
Credit |
Calculation/Result/Additional info |
| Base line (i.e. Base item) |
| 840 |
Sales value Gross no VAT |
|
4000.00 |
| Sales price * Quantity
800.00 * 5 = 4000.00 |
|
| 800 |
Cost for goods sold |
125.00 |
|
| Cost price * Quantity
25.00 * 5 = 125.00 |
|
| 901 |
Stock value |
|
125.00 |
| Cost price * Quantity
25.00 * 5 = 125.00 |
|
| Dependent FOC item line |
| 840 |
Sales value Gross no VAT |
|
0.00 |
|
| 808 |
COGS, FOC as discount |
50.00 |
|
| Cost price * Quantity
25.00 * 2 = 50.00 |
|
| 901 |
Stock value |
|
50.00 |
| Cost price * Quantity
25.00 * 2 = 50.00 |
|
| 808 |
COGS, FOC as discount |
|
50.00 |
| Cost price * Quantity
25.00 * 2 = 50.00 |
|
| 817 |
COGS, Reallocated |
50.00 |
|
| Cost price * Quantity
25.00 * 2 = 50.00 |
Account part keys from the base line are used. This same cost is reallocated to the base item. |
| A/R |
To be accounted on Account Receivable |
4000.00 |
|
|
Scenario 2: First, base line is invoiced and dependent FOC line is backlogged. Second, dependent FOC line is invoiced
Example: In this example, one order line for Item A with quantity of five units creates a second dependent FOC item line with a quantity of two units.
Prerequisites
The following prerequisites apply:
| Quantity |
5 |
| Sales price |
800.00 GBP |
| Cost price |
25.00 GBP |
| FOC quantity |
2 |
| FOC sales price |
0 (FOC) |
| FOC cost price |
25.00 GBP |
Step 1: Invoice of Base line
| Transaction type |
Description |
Amount
Debit |
Amount
Credit |
Calculation/Result/Additional info |
| Base line (i.e. Base item) |
| 840 |
Sales value Gross no VAT |
|
4000.00 |
| Sales price * Quantity
800.00 * 5 = 4000.00 |
|
| 800 |
Cost for goods sold |
125.00 |
|
| Cost price * Quantity
25.00 * 5 = 125.00 |
|
| 901 |
Stock value |
|
125.00 |
| Cost price * Quantity
25.00 * 5 = 125.00 |
|
| A/R |
To be accounted on Accounts receivable |
4000.00 |
|
|
Step 2: Invoice of dependent FOC item line
| Transaction type |
Description |
Amount
Debit |
Amount
Credit |
Calculation/Result/Additional info |
| Dependent FOC item line |
| 840 |
Sales value Gross no VAT |
|
0.00 |
FOC item |
| 808 |
COGS, FOC as discount |
50.00 |
|
| Cost price * Quantity
25.00 * 2 = 50.00 |
|
| 901 |
Stock value |
|
50.00 |
|
| 808 |
COGS, FOC as discount |
|
50.00 |
|
| 817 |
COGS, Reallocated |
50.00 |
|
| Cost price * Quantity
25.00 * 2 = 50.00 |
Account part keys from the base line are used. This same cost is reallocated to the base item. |
| A/R |
To be accounted on Account Receivable |
0.00 |
|
|
Scenario 3: First, dependent FOC line is invoiced and base line is fully backlogged. Second, base line is invoiced
In this example, one order line for Item A with quantity of one unit creates a second dependent FOC item line with quantity of one unit.
Prerequisites
| Quantity |
5 |
| Sales price |
800.00 GBP |
| Cost price |
25.00 GBP |
| FOC quantity |
2 |
| FOC sales price |
0 (FOC) |
| FOC cost price |
25.00 GBP |
Step 1: Invoice of dependent FOC item line
| Transaction type |
Description |
Amount
Debit |
Amount
Credit |
Calculation/Result/Additional info |
| Dependent FOC item line |
| 840 |
Sales value Gross no VAT |
|
0.00 |
|
| 808 |
COGS, FOC as discount |
50.00 |
|
| Cost price * Quantity
25.00 * 2 = 50.00 |
|
| 901 |
Stock value |
|
50.00 |
|
| A/R |
To be accounted on Account Receivable |
0.00 |
|
|
Step 2: Invoice of Base line
| Transaction type |
Description |
Amount
Debit |
Amount
Credit |
Calculation/Result/Additional info |
| Base line |
| 840 |
Sales value Gross no VAT |
|
4000.00 |
| Sales price * Quantity
800.00 * 4 = 4000.00 |
|
| 800 |
Cost for goods sold |
125.00 |
|
| Cost price * Quantity
25.00 * 5 = 125.00 |
|
| 901 |
Stock value |
|
125.00 |
| Cost price * Quantity
25.00 * 5 = 125.00 |
|
| 808 |
COGS, FOC as discount |
100.00 |
|
Account part keys from dependent FOC line are used. |
| 817 |
COGS, Reallocated |
50.00 |
|
|
| A/R |
To be accounted on Account Receivable |
4000.00 |
|
|
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