Reserve for encumbarance
Hi,
I create an invoice and create accounting.When i check view accounting events,there are two events.
1)First event accounting entry: DEBIT item expense Rs 150 and CREDIT reserve for encumbrance Rs 150
2)Second event accounting entry shows two entries with balance type actual and encumbrance:
Encumbrance balance type entry: DEBIT Reserve for encumbrance Rs 150 and CREDIT item expense Rs 150
Actual balance type entry :
Debit item expense Rs 150 and recoverable tax Rs 24
Credit Liability Rs 174
The question is at one click in creating accounting final,why it creates two event?what is the concept of encumbrance in AP invoice?with example
I create an invoice and create accounting.When i check view accounting events,there are two events.
1)First event accounting entry: DEBIT item expense Rs 150 and CREDIT reserve for encumbrance Rs 150
2)Second event accounting entry shows two entries with balance type actual and encumbrance:
Encumbrance balance type entry: DEBIT Reserve for encumbrance Rs 150 and CREDIT item expense Rs 150
Actual balance type entry :
Debit item expense Rs 150 and recoverable tax Rs 24
Credit Liability Rs 174
The question is at one click in creating accounting final,why it creates two event?what is the concept of encumbrance in AP invoice?with example
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