A purchase invoice was issued on 2023, and the goods were received on 2022 as memo and sold on the same date. Payments were received and the supplier was paid when the purchase invoice was issued on 2023.
What is the accounting method for registering in the MANAGER to avoid showing unreal net profits in 2022?
All transactions involved in the scenario you described should be entered like all other similar transactions. Profits resulting from these transactions are not “unreal.” When they are recognized depends on whether your accounting method is cash or accrual. The choice of accounting method also influences when transactions are entered. But that is not a question about Manager. It has to do with fundamental accounting principles.
Understand that recognition of profit is distinctly different from accounting for cash flow. Depending on which accounting method you choose, some scenarios have the effect of moving net profit to earlier or later accounting periods. But when this happens, other accounting periods’ profits change to compensate.
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Very good explanation tut. In this scenario, the manager will be different from the annual audit report. and i am believing that there is a way to let MANAGER matching the auditing reports.
i am thinking if there is an option at goods recepts that give a choice to chose which accounts could record the entery will solved this issue, not only for inventory tracking
That depends on the requirements for your audit report. Manager follows standard accounting principles, but your audit report may not, depending on who it is for and what their requirements are. Such special reporting requirements are not necessarily unusual, but you will seldom find software packages that support them directly without manual intervention.
I do not know what you are thinking of. But goods receipts do not affect financial statements. They record the movement of physical goods into inventory. The financial aspects of inventory are recorded with sales and purchase invoices or receipts and payments.