Accounting Entries for Order to Cash Cycle (O2C)

A quick summary of accounting entries in Order to Cash cycle

    Sales order creation – No entries
    Pick release:
    Inventory Stage A/c…………………Debit
    Inventory Finished goods a/c……..Credit
    Ship confirm:
    Cogs A/c ……………………………Debit
    Inventory Organization a/c………Credit
    Receviable:
    Receviable A/c………………………Debit
    Revenue A/c………………………Credit
    Tax ………………..…………………Credit
    Freight…………..….……………….Credit
    Cash:
    Cash A/c Dr…………………………Debit
    Receivable A/c……………………….Credit