The Vehicle Stock Book for Accountants - Flipbook - Page 25
Vehicle Life Cycle
Introduction
A vehicle9s life cycle is controlled by a Progress Code and an Account Status. The Progress Code is used by the
Vehicle Administrator to control the vehicles; the Account Status is used by the Accounts department and drives
the accounting entries.
The key stages and initial accounting entries are detailed below:
M – Memorandum
On creating a new vehicle record the earliest status, for both the Accounts Status and the Progress code, is M for
memorandum.
O – Ordered
Signifies that the vehicle is on order. No accounting implications.
C – Consigned
Identifies consigned stock. Generates the following accounting entries:
Dr – Consignment Stock
Cr- Consignment Creditor
A – Adopted
Identifies fully paid stock. Generates the following accounting entries:
Dr – Consignment Creditor
Cr – Consignment Stock
Dr – Fully Paid Stock
Cr – VSB – P/L Contra New
I – Invoiced
On production of the invoice the system updates the progress and account status codes to invoiced.
Accounting entries are generated by the update to the Account Status and the production of the Invoice.
Vehicle Life Cycle
01.900.21 – pwise – 01/06/06
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