How To Determine The Entry Time And Value Of Accounts Payable?

Accounts payable refer to debts arising from the purchase of materials, commodities or the supply of labour services.

This is a liability arising from the inconsistency between the buyers and sellers in the purchase and sale activities as a result of the inconsistency between obtaining goods and payment.

The entry time of accounts payable shall be marked by the time when the ownership of the material is pferred to the unit or the time when the agreed labor is actually accepted.

The pfer of ownership to the unit refers to the arrival and acceptance of materials, or the pfer of material ownership under the contract.

However, in actual work, it should be handled differently. In the case of the arrival of goods and invoices, accounts payable are normally recorded in the invoice book only after the goods are collected.

This is mainly to confirm whether the materials purchased are in conformity with the conditions specified in the contract in terms of quality, quantity and variety, so as not to find that the purchase of goods is found to be wrong, leaked, damaged and so on when checking and entering the warehouse at the time of checking and entering accounts, so as to avoid adjusting the accounts again. When the goods and invoices are not at the same time, the accounts payable should be registered according to the invoice bill. Sometimes the goods have to arrive at the invoice bill for a long time to arrive. However, since this liability has been established, it should be reflected as a liability.

In order to objectively reflect the assets and liabilities of the enterprise on the "balance sheet", in practice, we will use the end of the month to estimate the amount of purchases and debts payable, and then use the scarlet letter to rush back at the beginning of next month.

Accounts payable are generally recorded on the amount payable instead of the current value of the amount due.

If the purchased assets are discounted in the form of a payable account, the amount of the accounts payable shall be accounted for according to the total value of the payable amount recorded on the invoice (i.e., without deducting the discount).

In this way, the relevant accounts should be debited according to the total amount payable in the invoice, credit accounts payable, cash discounts for payment, and financial costs reduced.

That is, the accounts payable by enterprises (1), whether or not there is cash discount, should be accounted for according to the total amount payable. They should be paid tax on material purchase: they should pay the value added tax (input tax): loans payable: accounts payable: accounts payable; (2) in the case of cash discount, the cash discount that will happen when the enterprise pays the accounts payable shall be treated as financial expenses.