Hi,
Fixed Asset Item - Only Purchasing Flag enabled for Item.
---- Assign Asset clearing Account in Expense tab.
We have two Accounting Options for Expense items Accrue at <b>Receipt or Period End</b>
If it is at the time of <b>Receipt :</b>
Receiving :
Receiving Inventory A/C Dr
Expense AP Accrual A/C Cr
Invoice Matching:
Expense AP Accrual A/C Dr
Liability A/c Cr
Here my doubt is Either System creates Accounting entries for Deliver or not?
<b>Deliver :
Asset Clearing A/C Dr
Receiving Inventory A/C Cr</b>
Please let me know your views.
Thanks & Regards,
Anjireddy
P2P Accounting Entries for Fixed Asset Item
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Yes Anji, system creates an accounting entry at Deliver Event ...else the accounting would never match ....
On Receipt
========
Receiving Inventory A/C Dr
Expense AP Accrual A/C Cr
On Deliver
=======
Asset Clearing A/C Dr
Receiving Inventory A/C Cr
On Invoice Matching
=============
Expense AP Accrual A/C Dr
Liability A/c Cr
On Invoice getting paid,
================
Liablity A/C Dr
Cash A/C Cr
On Asset getting Created / capitalized in FA Module.
==================================
Asset Cost A/C Dr
Asset Clearing A/C Cr
Therefore, Receiving Inventory, Expense AP Accrual, Asset Clearing Account, Liability Account, all nets nullified, the resultant accounting entry would be ...
Asset Cost A/C Dr
Cash A/C Cr
Which is correct ....
Regards,
Karthikeyan
On Receipt
========
Receiving Inventory A/C Dr
Expense AP Accrual A/C Cr
On Deliver
=======
Asset Clearing A/C Dr
Receiving Inventory A/C Cr
On Invoice Matching
=============
Expense AP Accrual A/C Dr
Liability A/c Cr
On Invoice getting paid,
================
Liablity A/C Dr
Cash A/C Cr
On Asset getting Created / capitalized in FA Module.
==================================
Asset Cost A/C Dr
Asset Clearing A/C Cr
Therefore, Receiving Inventory, Expense AP Accrual, Asset Clearing Account, Liability Account, all nets nullified, the resultant accounting entry would be ...
Asset Cost A/C Dr
Cash A/C Cr
Which is correct ....
Regards,
Karthikeyan
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