PURCHASE RETURN (SC): PURCHASE ACCRUAL POSSIBLE NOT TO TIE UP ON GL

Created by Anna Maglinao, Modified on Wed, 13 Nov, 2024 at 1:12 PM by Anna Maglinao

A2000 ONLINE SUPPORT DEPARTMENT

KNOWLEDGE BASE

QUESTION:

Why it is possible when using PURCHASE RETURN (SC) transaction, the purchase accrual account do not tie up on GL?

ANSWER:

When the prevailing cost of the item changes due to subsequent in/out and the system has to credit Inventory 167.39 (else stock valuation won't tie). The corresponding double entry flows to Purchase Accrual at 167.39. However, the original purchase was only 165.95 and we have to debit Trade Creditor as 165.95. The corresponding double entry flows to credit Purchase Accrual. This give rise to a difference.

2. Second scenario is example we GRN in the items in at USD 1.35. When the supplier invoice comes in next month at USD rate 1.36, the Purchase Accrual account will also not tie.

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