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If a transaction is posted and say our company bought the
materials from a vendor. Does the vendor get credited or
debited and does gr/ir get credited or debited in the
accounts? please let me know im sorta confused with this
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Answer / sapuser
Hi...The following would be the entry in Purchase cycle...
1. at time of creating purchase order - there is no accounting entry,
2. at the time of goods receipt
eg..raw material ac dr
to GR/IR ac Cr
3. at the time of Invoice receipt
gr/ir ac dr
to vendor ac Cr
4. at the time of payment
vendor ac dr
to out going ac/bank ac Cr
| Is This Answer Correct ? | 9 Yes | 0 No |
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