Estimation means that the inventory has been received this month, but the purchase invoice has not been received, so the warehousing cost of the inventory cannot be determined. At the end of the month, in order to correctly calculate the inventory cost of the enterprise, it is necessary to calculate this part of the inventory estimation and form an estimation voucher.
Estimated income:
Borrow: raw materials (estimated amount)
Credit: estimated accounts payable/non-negotiable (XX supplier) (estimated amount)
It must be noted that if the VAT invoice is not obtained, the VAT input tax deduction cannot be declared. Therefore, there is no problem of estimation and deduction of input tax, and in the above entries, the estimated amount should be estimated according to the price excluding tax.
Expected backflush:
According to the regulations, the expected receipt will be rushed back in red at the beginning of next month. However, in actual work, if the invoice of the current month has not been received, it will be rushed back to the end of the month at the beginning of the month to re-estimate, which invisibly increases the workload, and generally will come back after receiving the invoice.
1. Red ink is flushed back to the estimated storage.
Borrow: raw materials (original estimated amount, red)
Credit: accounts payable-estimated/unbilled XX suppliers (original estimated amount, in red)
2. After receiving the invoice, do warehousing processing.
Borrow: raw materials (excluding tax invoices)
Taxes payable-VAT payable (input tax) (tax amount)
Credit: Accounts payable -XX supplier (including invoice tax)
How to account for the estimated cost and invoice when it arrives:
Answer: If the VAT invoice does not arrive, it will be recorded as an estimate. Only after the VAT invoice arrives will the provisional valuation be recorded. Then, purchase, put in storage and record according to the correct VAT invoice.
1. First, offset the entries of estimated receipt and estimated posting:
Borrow: raw materials/inventory goods (red)
Credit: accounts payable/estimated accounts payable-XXX supplier (red)
2. According to the received VAT invoice, put into storage and record the items!
Borrow: raw materials/inventory goods
Taxes payable/VAT payable/input tax
Credit: accounts payable/estimated accounts payable-XXX supplier
How to estimate the main business cost entries? Through reading, I believe you have a preliminary understanding of this issue. Don't miss the massive learning resources updated by accounting schools every day to gain deeper financial knowledge.