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SR/IR balance as on last date of Fiscal year

One of my client’s auditor raised objection on SR/IR balance as on last date of fiscal year.

Entire scenario is below:

1.Entry at the time of goods receipt:

Inventory a/c Dr. 1,000

GR/IR a/c Cr. 1,000

Since invoice is not received/forgot to enter till end of fiscal year, this entry will remain open as once we will enter invoice in next year (MM period is closed for previous Fiscal year) it will get clear. But now auditor has asked to make it zero as on last date of previous fiscal year. Could anybody suggest the best way to handle this scenario without passing any JV.

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1 Answer

  • Posted on Oct 15, 2019 at 08:15 AM

    Hi Mukesh,

    Better to ask from your FI business team, whether at later stage they already cleared those open accounts then you will make double entries!

    If Finance team already cleared then those documents you can find out as cleared items in report!

    Thanks,

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