I work for a company that manufactures ladders for the navy primarily. The way the accountant here has them entering things is that they put in a sales order. If they get a prepayment, they do a journal entry to debit ar and credit deferred revenue. Then, when the item ships out they have them do an invoice and apply the payment to the invoice. This makes VERY messy reports and the owner is a stickler about his reports! Right now, he has me looking at why the deferred revenue account shows invoices, credit memos, payments and journal entries. Does anyone see a problem with the way they are doing this process? I just started with this company and so did this accounting firm; just before me so, we have no idea how it was previously done but the owner is not happy with this process. Please help! I love quickbooks because I hate Journal entries and this is way out of my league.
