Retroactive price adjustment increase unit cost of the item
in Costing
PPC comes in after receipt was created for original PO price.
Original PO Price $10,000
1. Receiving
a. Dr Rec Inspection 10,000
b. Cr Accrual 10,000
2. PO Delivery
a. Dr Inv Valuation 10,000
b. Cr Rec Inspection 10,000
3. PO - Match Invoice
a. Dr Accrual 10,000
b. Cr Liability 10,000
Purchase Price Change
Cost Accounting
1. Acquisition Cost Adjustment
a. Dr Inv Valuation 500 - > updated account to same as Rec Inspection because of variances in Accrual Account
b. Cr Rec Inspection 500
2. User Cost Adjustment
a. Dr Inv Valuation 500
b. Cr Accrual 500
Receipt Accounting
1. Retro active price adjustments
a. Dr Rec Inspection 500
b. Cr Accrual 500 -> updated account to same as Rec Inspection because of variances in Accrual Account
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