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Stock valuation - customer paid, goods still here

Stock valuation - customer paid, goods still here

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Hi,

if we have ordered in goods for a customer and they have arrived on our premises before year end, the customer has paid for them in full but they are not yet invoiced and despatched - do we include them in our stock valuation?

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27th Jan 2019 11:27

It might depend on why the customer has paid your invoice before you have raised it. Why is that?

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By sdni
to johngroganjga
27th Jan 2019 11:29

Hi,
we usually ask customers for a deposit. Then they usually pay in advance of delivery of goods. Once delivered we raise an invoice. In this case the cusomter paid a deposit, has now paid the o/s amount but the goods won't be despatched until after 31st Jan (our year end).

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to sdni
27th Jan 2019 11:44

Defer the income, I'd say. (you haven't completed your side of the deal until the goods are delivered)

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27th Jan 2019 12:10

I'd say include in stock but the money is owed out to the customer until you despatch the goods.

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By sdni
to lionofludesch
27th Jan 2019 13:44

That’s what I was thinking. Until the item is invoiced it’s still our stock, surely?

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to sdni
27th Jan 2019 15:34

Sure.

The alternative is to invoice them and get them on their way.

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