Purchase credit note accrual?

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Hello all,

A purchase credit note did not get processed in time meaning it did not hit the P&L this month. It is included in the forecast for the month, so I'm thinking it should be accrued? If so, what would be the appropriate balance sheet account to use? Prepayments? 


Thank you in advance 

Replies (3)

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paddle steamer
18th Sep 2023 13:41

If it is a typical purchase re cost of sales and if missed invoices re these types of purchases are normally posted to accruals, I suspect I would treat it as a negative accrual. (Unless it was enormous in which case I might reconsider my thinking)

Having said above I suspect I might more prefer an accrual heading for missed purchase invoices and credit notes which I would then group with the PLCA within the management accounts.

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By tom123
18th Sep 2023 14:13

Important thing is consistency. I agree with DJKL, in that I would use the same balance sheet code as I might for missed purchase invoices.

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By carnmores
14th Nov 2023 13:13

is it material?

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