Question regarding PO clearing account

USA Discussion in 'General Accountancy Discussion' started by lwang, Jan 2, 2019.

  1. lwang

    lwang

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    Our company use a PO clearing account for inventory received but invoice not yet received from vendor. Sometimes inventory received without a PO. Will this affect the cost of good sold account? thank you
     
    lwang, Jan 2, 2019
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  2. lwang

    Steve-LevelUp VIP Member

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    This depends on the system you use. How do you record the inventory received if you do not have a PO to record against?
     
    Steve-LevelUp, Jan 3, 2019
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  3. lwang

    lwang

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    Thank you so much for replying

    It is recorded against the change in inventory account. So basically I need to make journal entry to

    Dr Cost of goods sold
    Cr PO clearing account

    Does this sound right?

    thank you
     
    lwang, Jan 3, 2019
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