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HI Experts,
Could any one please confirm me the entries of purchase order at product receipt and invoice. Becuase we have the purchase accrual account in debit couloumn though it is a liability account.
when we get this balance in debit side and what is the reason.
Thanks in advance
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If this is for Stocked type item, then product receipt journal would be;
Product receipt - DR
Purchase expenditure not yet invoiced - CR
Purchase expenditure not yet invoiced - DR
Purchase accrual - CR
Purchase order invoice journal
Above both journals will be reversed. Means whatever was posted debited during product receipt; will be credited at the time of invoicing and vice versa.
Below additional entry will be posted too to record actual receipt of inventory and create vendor as a liability.
Inventory receipt - DR
Purchase expenditure for product - CR
Purchase expenditure for product - DR
Vendor balance - CR
Not sure whether you are trying to say that Purchase Accrual is getting debited at product receipt level or not. If 'Yes', then you have to check in inventory posting profile setup under 'Purchase order' section. There is a posting type called Purchase, accrual where you have to do the setup for this accrual account.
Best regards,
Sourav Dam
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