Financial Education - Sales register and accounting control to analyze the records

The sales register is a process aimed at evaluating and analyzing the timely accounting record made to sales" That is, the sales register consists of recording, classifying and accounting for the sales obtained in the company, this according to section 23 of IFRS (2015).

The aforementioned section is applied to account for revenue from ordinary activities from the following transactions and events: (a) the sale of goods (whether or not the entity produces them for sale or acquires them for resale); (b) the rendering of services; (c) construction contracts in which the entity is the contractor; and (d) the use, by third parties, of assets of the entity that produce interest, royalties or dividends.

Given this, cash sales are part of ordinary revenues, which according to section 23 of IFRS for SMEs (2015) revenues such as sales shall be: Recognized, Valued, Measured and appropriately recorded.

An entity shall recognize revenue from the sale of goods when each of the following conditions are satisfied: (a) the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; (b) the entity retains no involvement in the ongoing management of the goods sold.

To the extent usually associated with ownership, nor does it retain effective control over them; (c) the amount of revenue from ordinary activities can be measured reliably; (d) it is probable that the economic benefits associated with the transaction will flow to the entity; and (e) the costs incurred or to be incurred in connection with the transaction can be measured reliably.