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Following transactions through the sales and accounts receivable process

In the previous example, we were looking at the chart of accounts and determining what transactions created the entries. Next, we will sell an item to a customer and see exactly how that transaction affects the accounting entries in the journal.

Let's begin by creating a new sales order.

Go to Sales and click on Orders to bring up the sales order listing. Click on Create to create a new sales order:

If you have followed along with our examples, then you will already have the customer and product entered to create the sample sales order. Otherwise, you will need to add ...