I received a goods in march 2014, but the invoice for the purchase was made in April 2014. Therefore, in march 2014, the COGS on the item 0 and what should I do to make a correction about this problem? Thnx for helping me.
Why can’t I use purchase on inventory item in my case?
When you have received goods from supplier in March 2014, have you entered any journal entry to account for this event?
Here is what you need to do, first go to your Chart of accounts and create new liability account called Goods received not invoiced.
Every time you receive goods from supplier without purchase invoice, enter new journal entry where you need to debit Inventory on hand and credit Goods Received Not invoiced. This will basically record the event when you receive goods without purchase invoice.
When you finally receive purchase invoice some time later, don’t use Inventory on hand account to categorize this purchase invoice as you would normally do. Use Goods Received Not invoiced account instead because your inventory has been already increased by journal entry when you received actual goods.
Does it make sense?
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Thanks for helping me to solve my problem.
I think you give me the great idea to solve my problem, when I did last night like you said, and I got the thing that I want. Day by day, I really love this software and want to share and give to all my clients to use.
Thank you very much.
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