Inventory Items (Standard Cost, Recoverable Tax)
The following tables illustrate the GL entries created for the receipt of a purchased inventory item, assuming standard cost and recoverable tax. The tax point determines whether the update to AP Tax Recoverable occurs at goods receipt or supplier invoice date.
Tax accrual at goods receipt
• When goods are received, entries are created for received item cost (1) and tax (2).
• When an invoice is received, entries are created for invoice value, including tax (3).
• When an invoice is matched, entries are created for invoice value, including tax (4).
Tax accrual at supplier invoice
• When goods are received, entries are created for received item cost (1) but not for tax.
• When an invoice is received, entries are created for item cost (2) and tax (3).
• When an invoice is matched, entries are created for item cost (4).
