CWIP Clearing amount recognized in prepaid advance account
Summary:
Content (please ensure you mask any confidential information):
Hi,
We have come across the below scenario (foreign currency trx);
(All amounts in ledger currency)
- PO Entered and received
CWIP Clearing A/C Dr 128.05
Accrual A/C Cr 128.05
2. PO matched prepay invoice
Prepaid A/C Dr 127.73
CWIP Clearing A/C Dr 0.10
Liability A/C 127.83
3. Invoice and prepayment applied
3.1 Invoice - Accrual A/C Dr 128.05
Liability A/C Dr 1.03
Liability A/C Cr 128.05
CWIP Clearing A/C Cr 1.03 (For exchange rate variance)
3.2 Prepay application - Liability A/C Dr 127.02
Exchange Loss A/C Dr 0.81
Prepaid A/C Cr 127.83
Please find concerns below;