To automatically allocate sales recorded in a generic account (GL 4100 – Sales) to three separate revenue accounts, simply post a reclassification journal entry in the general ledger.
Ledger Entry
GL Account | Description | Debit | Credit |
|---|---|---|---|
| 4100 | Generic Sales | 100 % | |
| 4110 | Sales – Mechanical | 70 % | |
| 4120 | Sales – Parts | 20 % | |
| 4130 | Sales – Warranty | 10 % |
Example: If account 4100 contains $100,000
GL Account | Description | Debit | Credit |
|---|---|---|---|
| 4100 | Generic Sales | $100,000 | |
| 4110 | Sales – Mechanical | $70,000 | |
| 4120 | Sales – Parts | $20,000 | |
| 4130 | Sales – Warranty | $10,000 |
Result:
- Account 4100 is brought back to $0.
- Revenues are allocated as follows:
- 4110 – Mechanical: 70 %
- 4120 – Parts: 20 %
- 4130 – Warranty: 10 %
This journal entry can be automated at the end of each period (day, week, or month) so that any sales recorded in GL 4100 are redistributed according to these percentages.
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