Reply from SAP_EZ on Dec 24 at 3:04 PM Why is the following not the correct accounting:
Dr sales discounts/rebates (shows loss of sales revenue below sticker price)
Cr accrued liability for customers who may redeem the rebate form in future
Dr accrued liability for customers who may redeem the rebate form in future
Cr customer payable (subsidiary and reconciling account) - giving credit to customer
After this cycle, somebody has to reconcile the accrued liability account for customers redeeming the rebates, adjusting it to an appropriate balance at each reporting date based on cumulative expectation of outstanding rebate forms to be presented in future.
Respectfully.
| | | ---------------Original Message---------------
From: sisonkemdala
Sent: Monday, December 05, 2011 10:22 AM
Subject: Accounting Entries at Rebate Settllement
Hi
I just want to make sure my rebate is posting correctly to FI at the time of settlement.
The entries are as follows:
Dr Expense Account
Cr Customer Account
Dr Accrual Account
Cr Expense Account
I would have expected just to see
Dr. Accrual Account
Cr Customer Account
Please confirm if these entries are correct. I need to be sure I am not mucking up! |
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