Announcement:
wanna exchange links? contact me at sapchatroom@gmail.com.
Posted by
Admin at
Reply from stefanosk on Sep 6 at 12:13 PM Sometimes the postings, accounts and numbers are saying the truth. Let's see the postings ( for example purposes the 10 containers have value 100 USD).
First posting
Debit Vendor 100
credit Bank account 100
Second posting after the goods receipt in MM
Debit stock account 100
Credit GR/IR account 100
Third posting - invoice
debit GR/IR account 50
Credit Vendor account 50
-----
If at the closing of the month the GR/IR is open, you have the following choices :
1. you leave it as it is
2. you do a manual entry and debit Goods in transit and credit a contra manual GR/IR account , used only for this case.
I agree with Vidhya Dhar for what he says for P/L and Goods in transit , but may be according to the accounting system you follow the goods in transit are added to the stock in hand, so high stock increases the ending stock of the period, and this reflects to the profit. But for me Goods in transit are not stock in Hand , I feel them as a claim from my vendor and nothing. For this reason your manager wants the reclassification, since GR/IR it is only an intermediate liability account.
Regards,
Stefanos
| | | ---------------Original Message---------------
From: aye thanda
Sent: Thursday, September 22, 2011 11:54 PM
Subject: Advanced Payment and Goods in Transit
Now we have made advanced payments to supplier.
But the goods have not been received yet.
For advanced payment- DR Supplier A/C
Cr Bank A/C
For receivable goods, should I prepare Goods In Transit a/c?
If I need GIT A/C, how should I pass journal entry?
Please kindly reply to me. |
| Reply to this email to post your response. __.____._ | In the Spotlight Become a blogger at Toolbox.com and share your expertise with the community. Start today.   _.____.__ |
