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Feb 08, 2011 at 02:18 PM

Doubt reg: MIGO GR/IR Reclass accounting entries


Hi ,

When MIGO is done , we have the below accounting entries.

Stock a/c - Dr

GR/IR clg a/c - Cr

On month end when we run F.19 , if MIGO is done and MIRO is not done,

the accounting entry is

GR/IR Adjustment a/c DR

GR/IR clg a/c - Cr

Is this correct?

Because the purpose of running F.19 is to reclassify the balances in GR/IR clg a/c to

GR/IR Adjustment a/c.

But as per the above entries, the GR/IR clg a/c, is credited twice.

Please explain, where I am getting the flow wrong.