Inter Department Sales/Cost adjustment
Posted: Sun Jun 29, 2008 3:03 pm
Dear Friends,
Scenario:
1. Department1 is raising Sales Invoice in AR on Department2.
2. Department2 is raising Sales Invoice in AR to Customer.
Present practice:
1. We are reversing Department1 Sales Invoice by Credit Memo - in order to reduce Accounts Receivable account and effect AR Ageing.
2. Then passing a JV debiting Department2 (cost) and crediting Department1 (sales)
3. Finally we raise actual Invoice to customer in Department2.
Can anyone guide a better option as each monthend we have around 50 entries to be passed. This is same company but different department(division) adjustment.
Thanks & Regards,
Nadeem
Scenario:
1. Department1 is raising Sales Invoice in AR on Department2.
2. Department2 is raising Sales Invoice in AR to Customer.
Present practice:
1. We are reversing Department1 Sales Invoice by Credit Memo - in order to reduce Accounts Receivable account and effect AR Ageing.
2. Then passing a JV debiting Department2 (cost) and crediting Department1 (sales)
3. Finally we raise actual Invoice to customer in Department2.
Can anyone guide a better option as each monthend we have around 50 entries to be passed. This is same company but different department(division) adjustment.
Thanks & Regards,
Nadeem