Cash Purchase , Freight for the Purchase
Purchased 425 jeans from Blue Ridge Denim, a premium-quality jeans manufacturer in Italy, paid in cash. Each unit costs $215, excluding GST. In addition to this, $32 (including GST) per unit was ...
Forum Discussion
Hi Genreve, Thank you for your response. I am an aspiring Accountant , pursuing Master of Professional Accountancy at Massey University. This is for an assignment and unfortunately myob community only can assist me.
If i include the cost of Nigel forwarders in one transaction . Should it be Bill and then record payment ( item cost + freight ) or spend money . I feel it has to bill only then correct cosgs will be affected as i am tracking inventory for 2 different items.
Kindly advice. Thank you for your assistance .
Hi g3charm,
Yes creating a bill makes sense in your use case. Here are two main differences between "Spend Money" and "Purchase + Payment" transactions:
- Recording Method: Spend Money transactions are recorded directly to the bank account. In contrast, with Purchase transactions, the payment and bill are separate, meaning that the debit first passes through trade creditors.
- Effect on Inventory Values: Spend Money transactions do not directly affect inventory values. On the other hand, Purchase transactions can include items which will affect inventory if necessary.
For more info check out these articles:
Hope this helps!
Regards,
Genreve
