Module 1: Recording of Financial Transaction - Sales

Bookkeeping records your income from sales of a product, service, or both—you’ll need to document any activity that generates revenue for your business.

Let’s say your business collects cash as payment for goods or services sold. Gathering information from receipts, like the amount of cash and value added tax (VAT) collected, and the type and quantity of products sold, is part of bookkeeping.

Sales of goods or services are normally recorded in the Subsidiary Sales Journal. This book can be bought from a bookstore or any office supplies store. 

REMEMBER: The Subsidiary Sales Journal must be presented to the BIR for stamping before it can be used. 

This Journal has the following essential columns:

·         Date

·         Name of Buyers

·         Invoice Number or Official Receipts (OR) Number

·         TIN or VAT Registration Number of the Buyer (if available)

·         Taxable Sales

·         VAT Output Tax

·         Total Invoice Amount

SAMPLE sales document: Sales Invoice (Owner’s name is Elcon Builders Center Inc.)

sample sales invoice

Here’s how the above sales invoice was recorded in the Subsidiary Sales Journal of the owner, Elcon Builders Center Inc. (Abstract only)

Date	Name of Buyers	Invoice / OR Number	TIN or VAT Reg. Number	Taxable Sales 12%	VAT Output Tax	Total Invoice Amount
1/13/18	Oliver	137482	223-111-682	75.89	9.11	85.00