India suspense account
- Thread starter jk.hira17
- Start date
Counterofbeans
VIP Member
- Joined
- Aug 5, 2013
- Messages
- 216
- Reaction score
- 25
- Country
What does it mean to you, "suspense" account?
When I hear suspense account, that tells me the system doesn't know where to record a certain transaction(s) and is recording those into this account.
In that case, you need to research why amounts are being recorded into the suspense account and record a JE fixing them.
When I hear suspense account, that tells me the system doesn't know where to record a certain transaction(s) and is recording those into this account.
In that case, you need to research why amounts are being recorded into the suspense account and record a JE fixing them.
We're not even sure what system the OP is referring to, but certain POS systems that operate on a 24x7 basis will have a suspense account. In these cases, a suspense account is typically a very, very short term AR account that will be paid in a matter of hours.
Case in point is a 24x7 diner. If the close of business day occurs at midnight and there is still someone with an open ticket, that ticket is accounted in sales, but not in payments received. But since the payment is coming in the next hour or so, it is simply 'suspended' from one day to the next. The next business day will have a payment, but no sale, so the other side of the entry is suspense vs sales.
Case in point is a 24x7 diner. If the close of business day occurs at midnight and there is still someone with an open ticket, that ticket is accounted in sales, but not in payments received. But since the payment is coming in the next hour or so, it is simply 'suspended' from one day to the next. The next business day will have a payment, but no sale, so the other side of the entry is suspense vs sales.