Chris,
Just for the record, I don't think what you're saying is correct.
On Dec 4, 2006, at 10:27 AM, Chris Howe wrote:
Not to call your accountant out, but WOW!
If the transfer of ownership of the fixed asset
occurred when the setup services were performed, there
is only ONE economic event that is occurring and
should be recorded as such:
Dr Fixed Assets - $1,000,000
Dr Shipping Expense - $50,000
Dr Professional Services expense (or something
similar) - $150,000
Cr Accounts Payable $1,200,000
However, if the transfer of ownership of the fixed
asset occurred when the item was shipped, and then at
a later date the item was setup, then there are TWO
economic events.
Dr Fixed Assets - $1,000,000
Dr Shipping Expense - $50,000
Cr Accounts Payable - $1,050,000
Dr Professional Services expense (or something
similar) - $150,000
Cr Accounts Payable - $150,000
An invoice is a request for payment. Stop making it
out to be something that it is not. A company's
account of their assets and liabilities has changed
regardless of whether a request for payment has been
made. Their assets and liabilities do not change
because a request has been made (or an even more
absurd assertion, that the request has been received).
This is why we have separate entities for invoices
and gL. Please use the correct entities.
Best Regards,
Si
[EMAIL PROTECTED]
