Hoping someone can help how I account for the following situation:
A manufacturing company (ABC Limited) make drinks for us, they buy all the raw materials and give us a fully loaded price after production.
ABC are happy to store all our drinks until required (after a certain volume we are charged storeage costs). We are invoiced on 30 day terms once the drinks have left their warehouse. Should I be accounting for these drinks as GRNI. They could be there for up to 6 months before being used and therefore invoiced?
Thanks in advance for any help!