Lesson 5 of 5 · 5 min read
GL impact & KPIs
The complete accounting journey of O2C, the reports AION ships for managing it, and the collection metrics every CFO should watch monthly.
The complete GL journey
Using the Panda retail sale from Lesson 4 — 2,000 bottles × 8 SAR + 15% VAT, 30-day terms — here are the three posts that matter:
At shipment
Trigger: warehouse marks shipment complete. SLA resolver: order-management-sla-account-resolver → SHIPMENT.
| Account | DR | CR |
|---|---|---|
| 5100 COGS | 4,000 | |
| 1220 Finished Goods Inventory | 4,000 |
At invoice approval
Trigger: AR invoice approved. SLA resolver: receivables-sla-account-resolver → INVOICE.
| Account | DR | CR |
|---|---|---|
| 1100 AR — Customer | 18,400 | |
| 4100 Sales Revenue | 16,000 | |
| 2120 VAT Output | 2,400 |
At payment
Trigger: AR receipt recorded and applied. SLA resolver: receivables-sla-account-resolver → RECEIPT.
| Account | DR | CR |
|---|---|---|
| 1010 Bank | 18,400 | |
| 1100 AR — Customer | 18,400 |
Net
| Account | Net | Meaning |
|---|---|---|
| 1010 Bank | +18,400 | Cash in (includes VAT) |
| 1220 FG Inventory | −4,000 | Stock reduced |
| 5100 COGS | +4,000 | Cost recognized |
| 4100 Sales Revenue | +16,000 | Revenue recognized |
| 2120 VAT Output | +2,400 | Owed to tax authority |
| 1100 AR | 0 | Created then cleared |
Gross profit per cycle = 16,000 − 4,000 = 12,000 SAR (75% margin).
Reports AION ships
| Report | Answers | Menu |
|---|---|---|
| AR Aging | Who owes, how overdue? | AR → Reports → Aging |
| Customer Statement | Full activity per customer | AR → Reports → Statement |
| Sales Register | All revenue by period, by customer, by product | Sales → Reports → Register |
| Gross Margin by SKU | Which products make money? | Sales → Reports → Margin by SKU |
| Gross Margin by Customer | Which customers make money? | Sales → Reports → Margin by Customer |
| Open Sales Orders | Committed but not yet shipped | Sales → Reports → Open SOs |
| Shipped not Invoiced | Revenue recognition gap | Sales → Reports → SNI |
| VAT Output Report | What tax you owe | Tax → Reports → VAT Output |
| Collection Aging by Rep | Who collects, who doesn’t | AR → Reports → Collection by Rep |
Every report drills to source documents — SO → shipment → invoice → receipt → bank.
KPIs every CFO watches
| KPI | Target | Where |
|---|---|---|
| Days Sales Outstanding (DSO) | < 45 days (industry-dependent) | AR Aging weighted average |
| % invoices paid on time | > 85% | AR Collection Report |
| Bad debt as % of revenue | < 1% | AR Write-offs / Revenue |
| Order-to-ship cycle time | < 5 days | SO → Ship date diff |
| Shipped-not-invoiced aging | < 3 days | SNI Report |
| Gross margin by SKU (trend) | Stable or improving | Margin Trend Report |
| Credit limit utilization | < 80% average | Customer Master analytics |
Any of these moving in the wrong direction is an early warning. DSO creeping up means collections are losing ground. Gross margin eroding means pricing vs. COGS is slipping. SNI aging means your revenue cutoff is sloppy.
The real-dollar ROI
Before AION (typical F&B factory, 20M SAR revenue)
- DSO: 75 days (bad) → 75/365 × 20M = 4.1M SAR tied up in AR
- Bad debt: 2% of revenue = 400,000 SAR/year written off
- Sales rep time on admin (SO entry, status, collections): 15 hours/rep/month × 5 reps × 300 SAR/hour = 270,000 SAR/year
- Monthly close adjustments from shipment/invoice mismatches: ~40 hours @ 150 SAR = 6,000 SAR/month = 72,000 SAR/year
After AION
- DSO: 45 days → 2.5M SAR in AR (1.6M SAR unlocked for working capital)
- Bad debt: < 1% = 200,000 SAR (200,000 SAR saved)
- Sales rep admin time: 5 hours/rep/month = 180,000 SAR saved
- Close adjustments: minimal = 65,000 SAR saved
Working capital unlocked: ~1.6M SAR (one-time benefit) Recurring savings: ~445,000 SAR/year
What you should do now
- Do the Panda lab in Lesson 4 if you haven’t.
- Open the demo’s AR Aging report and see what a real-time aging looks like.
- Open the Gross Margin by SKU report in the demo and imagine your own product mix.
- Reach out if you want to talk through your own customer credit policy and pricing.
The next course — Plan-to-Produce — covers how those finished goods got costed in the first place: recipes, job orders, and the cost flow from raw material to the COGS number you saw in this course.