Periodic inventory, AR Invoice Journal entries

[somchitra_oun-anuiom]

In case of periodic inventory,

When an outgoing invoice is posted, how should the JE entries look like ?

Can someone help me understand the entries made for such a case ?

[Former Member]

Hi Somchitra ,

Check this web link to have a better understanding of how JE would be created in this old fashion inventory and test them in your test environment:

http://ccba.jsu.edu/accounting/PERPETUALPERIODICJE.HTML

It should be implemented the same in B1 too.

Thanks,

Gordon

[lorna_real]

Hello Somchitra,

When you mentioned about outgoing invoice, my understanding is that this is a Sales Invoice. When a Sales Invoice is created in B1 as a stand-alone document (not based on Delivery Order) there will be two sets of information in the Journal Entry. These are the Cost of Sales and the Revenue portion.

Hence, a typical entry will look like this:

Dr. Cost of Sales - $25

Cr. Inventory - $25

Dr. Accounts Receivable - $75

Cr. Sales Revenue - $75

Depending on the transaction, there may be additional entries for tax.

I hope the above helps.

Regards,

Lorna Real

[somchitra_oun-anuiom]

Lorna,

I am afraid, this would not be the correct answer to my question.

These flow of entries are for perpetual inventory, where the inventory movement would be captured in GL as well. But i wanted to know the entries for periodic inventory valuation, where the GL will not capture any inventory value (in case of sale).

Moreover, in periodic inventory valuation, COS is not captured.

[former_member583013]

Hi Somchitra,

From understanding your original question Lorna's reply is correct. Your statement

I am afraid, this would not be the correct answer to my question. does not make sense unless you had a different question in mind.

If you are talking about a scenario where the Inventory got releaved with no value and COGS was not booked. Correcting this would not be possible unless you bring inventory back and do the transaction over.

To prevent this you may in System Init ..> Company Details > Basic Initia.. TAB UNCHECK Allow Stock Release Without Item Cost