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“Review after date invoices and credit notes to ensure no further items need to be accrued.”
Maam i understand that after date invoices might help in identification of GRNI and hence any accrual that needs to be added.
But how will any credit notes lead to an “accrued amount”? it should ideally “reduce accrual”.
Assume unless I say otherwise that I am always supposing a y/e of 31 December.
An invoice dated 3 January – $1,000 – shows a receipt of goods in December.
A credit note date 7 January – $1,000 – shows that the same goods were returned to the supplier because the goods were faulty.
Conclusion – no accrual needed for the invoice – but the auditor will need to check that the goods are not included in y/e inventory valuation.