Inventory entries in GL

[kishorebhupati]

Dear All,
I need to have detailed explanation even though there are several posts related to the query i am putting forward.
In payables module if i match an invoice to a receipt inventory Ap accrual a/c will be debited. I want to know the net off of this a/c with other accouts.
Apart from that from inventory perspective when some items are received and in then issued what are the entries in gl module.
Taking an example.
I purchase some inventory item at a cost of Rs.10000/- and i matched my invoice with receipt match.
In the 10,ooo/ received items
5,000/- were issued/consumed.
5000/- balance exists in inventory.

Please taking the above scenario explain me how gl will relate all this transactions.

[mpdhas@gmail.com]

Hi,

The following are the accounting entries.

1) On Receipt of the material

Receiving Inventory a/c Dr 10000
To AP Accrual 10000

2) In AP Receipt matching

AP Accrual a/c Dr 10000
To AP Liability 10000

3) On making payment to supplier

AP Liability a/c Dr 10000
To Bank 10000

4) On issuing the Inventory if it is issued for WIP then the entry will be

WIP (Work in Progress) a/c Dr5000
To Receiving Inventory 5000

5) If it is a manual issue it will debit whatever account the user is giving.

5) The balance Rs 5000 will be the closing inventory value.


If any one have different scenerios please post it here.

regards,
Dhas

[kishorebhupati]

Dear Dhas,
Thanks for the entries, but when it comes preparation of Financial statement how and in what way they will hit. i.e. As Receiving Inventory Account,Inventory AP Accrual are clearing accounts at the end of year how these balances will be ended and carry forwarded to the next financial year.
If it is a manual issue it will debit whatever account the user is giving.
What account i can take in above.
Please help me as i am unable to understand this from the perspective of financial statements.

[byswamy]

Hi Kishore,

There are two type of entries are import into GL. Materail(MTL), Work in progress(WIP) transactions.
When Receive stock. Material A/c will be debit,
when issue the stcok, Materila A/c will be credit, You will get total material(DEBIT-CREDIT) om Trail Balance
And Any miscellaneous issue entries will come
I am not sure the WIP trnsaction entries..

Once open the find journal form. Source-Inventory--find...Then go Line Drill down

Then Regarding Receiving accrual is Asset, and Inventroy AP Accrual is Liability, these A/C's march closing balances well be come Opening Balance of Apr.

I Hope U clear with this

Thanks
Swamy

[kishorebhupati]

Dear Swamy,
As going with my query again as both exist in cleaing Acounts how these balances will be carry forwarded as Asset and Liability what are the accounts it takes.

[byswamy]

Run Trial Balance Report for Mar-08 and Apr-09. U will find closin balance of Mar-08 and Opening balance of Apr-09 will same


Thanks
Swamy