GR/IR Clearing account problem

[Former Member]

please solve the under mention problem :-

A vendor is issued a purchase order for 200 pieces at 10 UNI/pc and 10% tax. there was a goods receipt of 140 pieces. the vendor sends an invoice for 200 pieces at 12 UNI/pc. The purchase manage decides on a partial reduction with quantity reduction with quantity variance. What will be accounting entries for the invoice and credit memo?.

[Former Member · Accepted solution]

At GR :

Stock account 1400 +

GR/IR account 1400 -

At IR:

Debit: GR/IR account 2000 +

Vendor Account : 2640 -

Input tax : 240 +

Clearing Account for Invoice reduction : 400+

Credit Memo :

Vendor Account : 440 +

Input tax : 40 -

Clearing Account for Invoice reduction : 400-

[sidi_reghioui]

at goods receipt:

Debet: Stock account 1400 UNI

Credit GR/IR account 1400 UNI

at IR:

Debit: GR/IR account 1400 UNI

Credit: Vendor 2400 UNI

Debit: Invoice reduction 720 UNI

Debit: Price difference account 280 UNI (in case of Material with standard price - control S) or to stock account in case of material with Moving average - control V)

Sidi