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title: "Sales Transactions and the General Ledger"
canonical: "https://kb.myframeworks.com.au/space/PROSTIXV48DOC/31100502/Sales%20Transactions%20and%20the%20General%20Ledger"
format: markdown
---
As you process a sale, the software calculates the sell price from the inventory and pricing mechanisms. The cost price of the item is picked up from: ProStix uses both the sell price and the cost price to calculate the gross profit of each line of every transaction. Account Sales GST Inclusive Sales to an Account Customers - Sale of $1,000.00 with a cost of $700.00 and a settlement discount on payment of 2.5%.   Cash Sales   There are two ways to set up the handling of the cash taken at Point of Sale: 1. The money is debited straight to the Bank Account in the General Ledger. That is, no Cash Clearing account. 2. The money is debited to a Cash Clearing account which is credited when the money is physically taken to the bank. 1. No Cash Clearing Account Cash Sales - Sale of $1,000.00 with a cost of $700.00 with the Branch Cash Clearing Account not set up, followed by the reconciliation of the till where there is a till variation of $5.00. The money is then taken to the bank. 2. With a Cash Clearing Account Cash Sales - Sale of $1,000.00 with a cost of $700.00 with the Branch Cash Clearing Account set up, followed by the reconciliation of the till where we have a till variation of $5.00. The money is then taken to the bank.