Regarding payables being understated,
1. If we receive the goods and invoice before the year-end, then just sending the goods back along with a goods return note and debit note will be enough to remove the balance from our books or is the receipt of a credit note being received before year-end is necessary too?
2. And in the case where we have just received the goods and recorded purchases and the respective accrual for them, is just sending them enough to remove the related balance?
Ask the Tutor ACCA AA
Payables and accurals
4y ago#11. is enough - if the credit note has not been received it will simply be accrued. In practice a company may raise its own "debit note" which it sends to the supplier with the returned goods - and then posts the debit note rather than wait on the credit note - but you wouldn't be expected to know this in AA.
2. I think it would be rather contrived to have an accrual for goods received not invoiced and an accrued credit note matching some of those goods received which have been returned - but, for completeness, this might be how to record it though clearly no net effect.
If goods are not accepted e.g. into the warehouse in the first place, you wouldn't record them at all.
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