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View Full Version : Recording Receipt of Inventory in Real World Bookkeeping



ekuemoah
05-11-2012, 04:39 PM
When I usually buy a book from Amazon.com, the shipper or amazon.com sends me an email telling me that the items have been shipped. This is usually 2 days after I buy the items. If I were purchasing this for a business and shipping the items FOB_Shipping, would I record the assets in my inventory on the day that the I get the email telling me the items were shipped or the day that I made the purchase?

Is it common practice for a vendor to send a notification to a buyer stating that the items they purchased were shipped or do businesses just use the date purchase order was sent as the date when recording the items as Inventory?

I have a question about trade terms. The trade terms are from the billing statement date. Do you count from the statement date and not the date I received the statement? So,when I receive it, I would open the bill and stamp it with a time and date stamp for the date received, correct?

For example, if I get a bill (2/10,n/30) for the purchase on May 2nd but the statement date is on April 28th, I would count days from April 28th?This would make the last date to take the discount April 8th, correct? Do I count just business days(Mon-Friday) or Do I count business and weekends in calculating this?

Thank You

Evan
05-11-2012, 05:35 PM
These seem more like "I'm taking an accounting class" questions and not legit "accounting questions" of a small business owner.

In any event. FOB Shipping Point means once it ships, it's yours legally (you own the asset). That also means if it gets lost in the mail and you didn't insure it, that's also your problem.

Most businesses, if they were larger, would issue a PO for the inventory, and probably record it as received once it arrives so they can verify the quantities match, etc.

For trade terms, it's based on the billing statement date, and the days are calendar days. So when you get a bill that's net 30, it's due 30 calendar days, not 30 business days.