Inventory Items (Standard Cost, Non-Recoverable Tax)
The following tables show the GL entries for purchases of inventory items. The tax point determines whether the update to AP Tax Recoverable occurs at goods receipt or invoice date. Inventory items are items you purchase to use in manufacturing or to sell to customers.
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 (3).
• When an invoice is matched, entries are created for item cost (3) and 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 invoice value (2) and tax (3).
• When and invoice is matched, entries are created for item cost (4).
