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Accrued Landed Cost Not Reducing Inventory G/L with a POP Return

  • 1.  Accrued Landed Cost Not Reducing Inventory G/L with a POP Return

    GPUG ALL STAR
    Posted Aug 30, 2019 03:37 PM

    1. We receive inventory against a PO that's applied to a PO prepayment.  This receipt has accrued landed cost.

    2. We return the receipt w/ credit.  When we look @ the Inventory HITB, we see a the inventory cost reduction of the actual inventory PLUS the reduction for the accrued landed cost.

    3. When we look at our G/L when all is said and done, the inventory account is ONLY reduced by the inventory cost amount & the accrued landed cost reduction apparently goes nowhere.

    I'm assuming that receipt returns should correctly return and impact the G/L for the accrued landed cost as well?  Otherwise, like we have to do now, everyone would be constantly making journal entries to true up the G/L to the inventory subledger?

    Any insight here?  Thanks in advance!



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    Kyle Malone, CPA
    GP Admin - CGB Enterprises, Inc.
    Lead Consultant/Blogger - http://ALaCarteGP.com
    Chapter Leader - Louisiana (New Orleans)
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  • 2.  RE: Accrued Landed Cost Not Reducing Inventory G/L with a POP Return

    GPUG ALL STAR
    Posted Sep 05, 2019 09:06 AM
    Hey @Kyle Malone, CPA

    If the receipt was not an invoice type, then (normally) the landed cost was not yet applied.  The landed cost usually happens at the invoicing piece of the transaction.  If it was only received and NOT invoiced then LC would have not had an impact on Inventory yet and therefore, the return would have not landed cost impact.

    OR, if the Invoice has been done, you actually have to do a return against the Landed Cost Vendor as well.  So they would to a return, use the LC Vendor and return that portion of it separately than the inventory return.​

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