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The system recognizes inventory and related property in
accounting when title passes or when the goods are
delivered to us.
Taking possession of inventory means we do owe for the
product even though we do not have an actual invoice.
However, the end of the month can be closed before the
actual vendor invoice is received.
If all attempts fail to contact the vendor for an invoice via
fax, email, regular mail, or even a voice confirmation of
one then the following procedure applies:
1)
Simply change the “invoice#” from the special “-- rcvr”
code to
“R-mmddyy”. This will allow the system to see it as a
posting transaction.
2)
Run a vendor invoice register and qualify on “r-“ so that
you can see the total amount of outstanding payable
invoices that you have not received actual invoices for.
3)
You may make a journal entry to separate this amount from the
true payables if you wish.
If you do not intend to pay for the inventory then don’t
put the transaction in the system.
That would not be the recommended practice. You
might not want to pay for the inventory received until you
get an actual invoice but you still owe for the inventory.
However, if you do pay for it before you get the
actual invoice there’s no harm cause you owe it anyways.
If you receive an invoice later and decide that
more money is owed and you are willing to pay, then simply
create an adjusting invoice for the difference.
Remember:
When
you get audited, auditors will look for the actual
shipping records from when you actually take possession of
the goods as to determine when it became an asset for the
company.
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