/Joe

Thanks, this should be fine.

Company accountant advised  to pass a  'Reverse' JE to adjust the outstanding GRN at the year end.
That should take care of inventory valuation by GL and by stock.

Please correct if this is not the correct/best way.

Thanks,

These operations were tested and implented some three years ago.

/Joe

I tried a scenario. Made PO and accepted delivery for an item.
Item is sold. The inventory balance goes in credit, resulting in
Inventory valuation as per BS to be negative.
 
Should this be okay ? Or I am getting it wrong.

I am testing more cases related to GRN.
Will update soon.

Thanks,

Actually I have query here. When we have GRN/PO delivery done but Invoice is pending, till the time, will the Inventory account not mismatch with actual stock ?

Should this be accounted as liability against Inventory ?

Thanks

/Joe

I checked the system but did not found any GL entry for PO delivery i.e. GRN

Am I wrong somewhere ?

Thanks

Thanks for your detailed answer. This is very helpful.

Mitch

/Joe

Thanks for your answer. I probably should have been more specific. How does the system handle the following scenario? Let's say I enter a purchase order into the system, and that purchase order has a date that is in the past. The past date on the purchase order falls onto a time frame for which I have already closed the books (year end or quarterly). Will the JE then adjust the quarter that had already been closed by adding journal entries into the past records, or will the JE reflect the change in the in the current time frame with the appropriate adjustment to the current time frame. It becomes a question of reconciliation I suppose. I hope that this is a more precise question. Thanks again for your help.

Regards,
Mitch

/Joe

I have a question concerning the posting of purchase orders in the system. Does the software handle the adjustment of journal entries when a purchase order  is entered for a time period which has already been closed? Thanks in advance for your help.

Mitch