Accrual accounting purchases

steinerpierce · ‎January 10, 2019

Hello -

I issued a PO and placed an order with an online retailer on 12/1/2018 for an item that I expected to be charged for and receive delivery on before the close of 2018. As it turns out, the item went on backorder, and I only just received it. The retailer did not charge me until this month, January of 2019.

I am unsure of what to do bookkeeping-wise. Should I record the purchase in 2018 or 2019?

Thank you for your help.

MarshallA · ‎January 10, 2019

Hello,

As far as QuickBooks goes, a PO is a NON-posting transaction. No money is changing hands and no accounts are being affected.

If you didn't receive the items OR bill until 2019, then just enter the bill and receive the items in QuickBooks with the 2019 date same as you normally would. This will show that your inventory asset for the items increased in 2019 as well as your accounts payable increased in 2019 for the bill.

View solution in original post

MarshallA · ‎January 10, 2019

Hello,

As far as QuickBooks goes, a PO is a NON-posting transaction. No money is changing hands and no accounts are being affected.

If you didn't receive the items OR bill until 2019, then just enter the bill and receive the items in QuickBooks with the 2019 date same as you normally would. This will show that your inventory asset for the items increased in 2019 as well as your accounts payable increased in 2019 for the bill.

View solution in original post

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