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- This topic has 5 replies, 2 voices, and was last updated 3 years ago by sarah762.
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- October 27, 2020 at 5:23 pm #593286
Hi,
How does obtaining copies of the last goods received notes and last goods despatched note confirm the cut off of inventory?
October 27, 2020 at 7:03 pm #593291IMAGINE …
GRNs 1123, 1124 and 1125 are dated 31 December (reporting date) and GRNs 1126, 1127 and 1128 are dated 2nd January.1123-1125 should be matched to invoices included in purchase day book for December (i.e. in y/e payables) or goods received not invoice accrual.
1126-1128 should be matched to invoices recorded in the purchase day book in January – i.e. not included in purcases/payables at the y/e because the goods cannot have been included in inventory.
Similarly for sales cut-off.
October 27, 2020 at 7:31 pm #593294Thank you
October 27, 2020 at 7:36 pm #593295Hi, can you explain why the GRNs have to be matched to the invoices?
Sorry, I’m bad at understanding things
October 27, 2020 at 9:20 pm #593305GRN only records receipt of inventory (quanitities) – you need a purchase invoice to record cost of purchases/trade payables in the accounting records.
If you have inventory but no purchase then cost of sales will be understated – and profit overstated.
October 28, 2020 at 1:24 pm #593367Thanks
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