Kindly let me know the meaning of Accrued Purchase A/C in purchasing
It depends upon the requirement of the client whether Purchase Account is to be activated or not?
In some countries purchase accounts must be managed to document the value at which externally procured materials are posted.
The purchase account is posted at the time goods receipts and incoming invoices are posted, with the same amount as the stock account. The offsetting entry is posted to a purchase offsetting account. The
purchase account is generally not posted upon goods receipts for purchase orders with account assignment.
A freight purchase account also exists. This is used to document delivery costs posted for externally procured materials.
Also maintain the automatic account determination function for the following transactions in OBYC;
- EIN - Purchase account
- EKG - Purchase offsetting account
- FRE - Freight purchase account