LCM Accounting

Hi

I have the following scenario:

PO = 600 USD

Qty of items = 10

Unit Price = 60 USD

Freight Charges = 100 USD

1st Event: PO Receipt

Accounting at receipt:

Dr Receiving Inspection a/c = 700

Cr AP Accrual a/c = 100

Cr LCM Absorption a/c = 100

Accounting at delivery to inventory:

Dr Inventory a/c = 700

Cr Receiving Inspection a/c = 700

2nd Event: Issue out all the items received (this is being done before matching Freight Invoice with PO)

Cr Inventory a/c = 700

Dr Charge a/c = 700

After 2nd event, we do not have any quantity in stock. Now we will go and match the freight invoice with PO