pelase give me the information

[Former Member]

please exlain the difference between the goods clearing a/c and expense clearing a/c

[lorna_real · Accepted solution]

Hello,

The Goods Clearing Account is used when closing Goods Receipt PO or Goods Return (via Data -> Close). In this case, no inventory entry is registered; however, a journal entry is created including this G/L account.

On the other hand, the Expense Clearing Account is used when an 'Additional Expense', say Freight, has an impact on the Inventory during the Goods Receipt transaction. Hence:

Dr. Inventory (Cost + Additional Expenses)

Cr. BP Vendor (Cost)

Cr. Expense Clearing Account (Additional Expenses)

Hope this helps.

Regards,

Lorna