Sales Type C

This Sales code records income the business earns from sales type c. As an income account, it normally carries a credit balance: credit entries increase the balance (recording new income) and debit entries decrease it (for example, a credit note issued to a customer).

Real-world examples

Multichannel retailer (online vs. in-store)

A retailer selling both through a physical shop and a website repurposes 4002 to capture web sales separately from in-store sales, since online orders carry different fulfilment costs — postage, packaging — and conversion patterns worth tracking on their own. A day's online orders totalling £456 (£380 net) is a debit of £456 to 1100 (Debtors Control Account), a credit of £380 to 4002 (relabelled "Online Sales"), and a credit of £76 to 2200 (Sales Tax Control Account).

Professional services (splitting practice areas)

An accountancy practice repurposes 4002 for one specific service line — payroll bureau work, say — separate from general compliance and advisory fees, because it's priced completely differently (a flat monthly fee per payslip, rather than time-based billing) and the partners want to see its profitability in isolation. A month's payroll fees of £600 (£500 net) is a debit of £600 to 1100, a credit of £500 to 4002, and a credit of £100 to 2200. Whatever the relabelling, the underlying entry is the same as any other sales code.

Commonly confused with

Because code 4001 (Sales Type B) sits right next to this one in Sales, it's a common mis-posting target. Code 4002 is specifically for sales type c, while 4001 covers sales type b — similar in nature, but keeping them separate is what makes the sales section of your management accounts meaningful rather than a single lumped total.

What a mis-posting here costs you

A sale posted to the wrong Sales code won't change total turnover, but it will distort the sales analysis used to see which products, services or channels are actually driving revenue.

Other codes in Sales