What is the entry when merchandise has been received but not the vendor’s invoice?
If you received merchandise, but have not received the vendor’s invoice by the end of the accounting period, you need to 1) debit Purchases (periodic method) or debit Inventory (perpetual method) for the cost of the goods or merchandise received, and 2) credit Accounts Payable. You also need to include the merchandise in your physical inventory.
When the vendor’s invoice is received and processed, be sure to reverse (remove) the above entry.
Comments
7 Responses to “What is the entry when merchandise has been received but not the vendor’s invoice?”
Leave a Reply
 | Free updates with your feed reader (or) receive our monthly Q&A newsletter by filling out the form below: |
Accounting Cheat Sheet
Receive our popular 15-page Cheat Sheet at no cost when
you join our free newsletter:
|
We keep your email address 100% safe and secure.
Most Recent Questions
- What is the meaning of sundry and sundry debtors?
- If an accrual adjusting entry increases an expense and a liability, how does the balance sheet remain in balance?
- What is the difference between liquidity and liquidation?
- What is the meaning of pro rata?
- What is the difference between financial accounting and management accounting?
- What is the difference between accounts payable and accounts receivable?
- In a bank reconciliation, what happens to the outstanding checks of the previous month?
Questions by Category
- Debits and Credits
- Depreciation
- Financial Accounting
- Financial Ratios
- Improving Profits
- Income Statement
- Inventory and Cost of Goods Sold
- Lower of Cost or Market
- Manufacturing Overhead
- Nonmanufacturing Overhead
- Payroll Accounting
- Present Value of a Single Amount
- Present Value of an Ordinary Annuity
- Standard Costing
- Stockholders' Equity
Why AccountingCoach.com?
AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.
By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.
Read 1,200+ Visitor Testimonials
hi give me dec about accounting
Debit Inventory
Credit Accounts payable (Temporary account)
when invoice is recd then
Debit Accounts payable (Temporary accounts)
Credit Vendor payable
If there is any difference between entry already booked and invoice recd then such difference shall be accounted for as follows
Debit/ Credit Inventory
Credit/ Debit Vendor payable
How do we account for an asset disposed before the end of an accounting period
Debit the asset received in exchange(preferably cash) and credit the book value of the asset disposed off. The difference between the asset received in exchange and the book value of the asset disposed off is to b debited or credited(as the case may be) to the Profit & Loss Account.
How to account in following circumstances:
1. Invoice received by AP, matches PO but the good have not been received by the requestor (delivery in progress by the Vendor)
2. Invoice received by AP, matches PO and the requestor has received the goods but has not acknowledged the receipt of goods?
These are exception scenarios but I would like to understand how these scenarios shd be addressed from account perspective.
Ans Q.1. If you already given money but still they not delivered goods :
Advance to Supplier debited and Cash/Bank credited . then after taking goods you offset advance accounts with inventory .
Hi would some1 tell me which way could it b easy2 understand, the question&post 2 the journal.EASIEST method2 know which method can b helpful2, a person who have never do acc before because ledger seem 2 b easy 4 me.the other 1 confusing me a .lot