Can anyone tell me what accounts typically get hit when goods come into the warehouse and are “received” via a packing slip? The goods must be put into an interim or suspense accounts until the actual invoice comes in and the folks in Accounts Payable process the invoice.
I would assume the Purchase Account and the DIrect Cost Applied account come into play here, but I am fairly new to this and could use some help.
Thanks.
Hope this helps…
Acct. Description Amounts Amounts G/L Acct#
1 During PO receipt
Debit Inventory (Interim) 100 13010 This is only when expected cost is turned on
Credit Invt. Accrual Acc. (Interim) 100 22160
2 When PO is invoiced original entry is reversed (“purchase match”)
Debit Invt. Accrual Acc. (Interim) 100 22160
Credit Inventory (Interim) 100 13010
Debit Inventory 95 13000
Credit Direct Cost Applied 95 52020
Credit A/P 95 22100
Debit Puchases 95 52010
When an item is sold before bill from the vendor is received
Debit A/R 150 12000
Credit Sales 150 41005
Debit COGS 100 51000
Credit Inventory 100 13000
After the bill is received from the vendor and the PO is invoiced the corrected price is posted by the system
Debit Inventory 5 13000
Credit COGS 5 51000