Hi,
I have little bit doubt in Invoice price Variance Accounting Entry,
Po price =10 qty= 10
Receipt and Invoice price =11
When received material
Receiving Material A/C dr 110
AP Accrual A/C cr 110
When we matched the invoice with receipt,
<b>The Accounting entry is,
AP Accrual A/C dr 100
Invoice price variance A/c dr 10
Liability A/c cr 110</b>
Is this Accounting entry is correct or Vice versa.
Please let me know your Valuable Suggestions.
Thanks & Regards,
Anjireddy.
Invoice price Variance Accounting Entry ?
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- Posts: 67
- Joined: Sun Dec 12, 2010 4:42 pm
- Location: India
Hi anjireddy
P2P Entries
Inventory item upon Recipt:
=========================
Receiving inventory a/c (inspection) Dr ****xx
Inventory A/P accrual Cr ********
Upon Delivery:
===============
Material a/c for (inventory org. receiving goods) Dr ****x
Purchase price variance Cr ****x
Purchase price variance Dr ****x
Receiving inventory a/c Cr ****x
Upon Invoicing:
==================
Inventory A/P Accrual Dr ****xx
Invocie Price Variance Cr ****xx
Invocie Price Variance Dr ****xx
A/P liability A/c l cr ****xx
Expense item at period end
========================
Upon receipt and delivery
-no accounting-
Upon invoicing
================
Expense A/c dr ****x
Invocie Price Variance Cr ****xx
Invocie Price Variance Dr ****xx
A/P liability A/c cr ****xx
Expenses item accrue on receipt
==========================
Upon receipt
===========
Receiving inventory a/c dr ************x
expenses A/P accrual a/c cr ************xx
Upon delivery
==========
Expense a/c on purchase order Dr. ****************
receiving inventory a/c cr ****************
Upon Invoicing
Expenses A/P accrual a/c Dr ************xx
A/P liability A/c cr ****xx
P2P Entries
Inventory item upon Recipt:
=========================
Receiving inventory a/c (inspection) Dr ****xx
Inventory A/P accrual Cr ********
Upon Delivery:
===============
Material a/c for (inventory org. receiving goods) Dr ****x
Purchase price variance Cr ****x
Purchase price variance Dr ****x
Receiving inventory a/c Cr ****x
Upon Invoicing:
==================
Inventory A/P Accrual Dr ****xx
Invocie Price Variance Cr ****xx
Invocie Price Variance Dr ****xx
A/P liability A/c l cr ****xx
Expense item at period end
========================
Upon receipt and delivery
-no accounting-
Upon invoicing
================
Expense A/c dr ****x
Invocie Price Variance Cr ****xx
Invocie Price Variance Dr ****xx
A/P liability A/c cr ****xx
Expenses item accrue on receipt
==========================
Upon receipt
===========
Receiving inventory a/c dr ************x
expenses A/P accrual a/c cr ************xx
Upon delivery
==========
Expense a/c on purchase order Dr. ****************
receiving inventory a/c cr ****************
Upon Invoicing
Expenses A/P accrual a/c Dr ************xx
A/P liability A/c cr ****xx
-
- Posts: 67
- Joined: Sun Dec 12, 2010 4:42 pm
- Location: India
HI,
THANKS FOR UR REPLY.
Your mean every both debit and credit entries will create one time or in the case of Invoice price variances increases or decrease.
I understood your reply for given example AS,
Po price 10 and qty 10y 10.
Invoice and Receipt prices is 11 and qt
AP accrual A/C Dr 110
Invoice price variance a/c Cr 10
Invoice price variance a/c Dr 10
Liability A/C cr 110
Thanks & Regards,
Anjireddy.
THANKS FOR UR REPLY.
Your mean every both debit and credit entries will create one time or in the case of Invoice price variances increases or decrease.
I understood your reply for given example AS,
Po price 10 and qty 10y 10.
Invoice and Receipt prices is 11 and qt
AP accrual A/C Dr 110
Invoice price variance a/c Cr 10
Invoice price variance a/c Dr 10
Liability A/C cr 110
Thanks & Regards,
Anjireddy.
-
- Posts: 74
- Joined: Tue Jul 10, 2007 10:02 am
- Location: India
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