About Order Shipping and Order Shipment Posting (Japan)
After customers receive shipments, they must approve the shipments. When the shipments are approved, you can post a journal entry for the shipment, which then allows the order to be invoiced. However, there may be some time between the date when the shipment is approved and the date when invoicing occurs. During that time, the amount of the order is recorded in your accounting ledgers under Unbilled Accounts Receivable. After invoicing, the amount is moved into Sales and Consumption Tax Payable.
On the Order Shipments form, you can indicate customer approval for individual shipments.
Journal Entries Created by Posting the Shipment
After the customer approves an individual shipment, posting the shipment creates a new Unbilled Accounts Receivable journal entry for the AR DIST journal. The journal entry for the posted shipment takes this form:
| Dr | Unbilled Accounts Receivable | |
|---|---|---|
| Dr | Sales Discount (optional) | |
| Cr | Sales | |
| Cr | Consumption Tax Payable |
Reversing an Order Shipment Posting
To manually reverse an order shipment that was approved and posted in error, click . This creates an offsetting journal entry from the entry created during the posting process. The approval date and remarks are removed. The journal entry for the reverse posting of the shipment takes this form:
| Dr | Sales | |
|---|---|---|
| Dr | Consumption Tax Payable | |
| Cr | Unbilled Accounts Receivable | |
| Cr | Sales Discount (optional) |
Journal Entries Created by Invoicing a Posted Shipment
In the Order Invoicing/Credit Memo form, you can select only those order shipments that are approved and posted to the AR DIST journal. The invoicing process can create a journal entry to reverse the shipment posting accrual entry and then create AR invoices and attendant journal entries that take this form:
| Dr | Accounts Receivable | |
|---|---|---|
| Dr | Sales Discount | |
| Cr | Sales | |
| Cr | Consumption Tax Payable |
The amounts for the Consumption Tax are determined based on the settings defined in the Customers form for the Consumption Tax Round Method and the Consumption Tax Header or Line Method.