Accounting

A company that purchases from overseas receives the invoice before the goods. They use standard costing method and want to post into inventory upon receiving the invoice. Is this ok?

Generally, the variance measures the standard cost of an inventory item against the actual cost

Is it a best practice to determine the accounting period based on invoice date instead of service period? If I understand the correctly, we would need to setup a reversing accrual for regular expenses. Is that correct?

We assume by "accounting period" you are referring to what period you should charge the expense on

We have some vendors, who for whatever reason, are billing us many months after work is complete. How do you handle it when a vendor delays invoicing you for work that has been completed or supplies that have been received?

The answer to your question will depend on the type of accounting methods you are using: 1) accrual

Extending a lease for PCs: The original FASB13 test was conducted and the lease came back as an operating lease. The lease expires at the end of this year. Our IT staff wants to extend the lease another year. Do we need to retest the lease?

After researching your question, it appears that the lease extension would be considered a new

DPO: break out the purchases(COGS) from our discount term suppliers separately to find the DPO, calculate the DPO on the non-discount term suppliers. Is this calculation any different than the normal way?

The calculation would not be any different but your inputs will be. You will have to break up your

I'm trying to find rules that will help me determine if the painting part of a construction project can be capitalized. We are also thinking that this also applies to carpet, are you inclined to agree with me?

The answer to your question depends on the context of construction project, such as whether it’s

How do we use the chart of the accounts to verify coding?

The chart of accounts provides the reporting structure of each account in your accounting general

We have a lot of honorarium payments submitted weekly. My company uses check request for anything we do not have a physical invoice for. For auditing purposes, is it acceptable to have a check request with no documentation attached?

In general, it is a good business practice to get an invoice from all of your vendors. However,

Currently we file by batch number rather than alphabetically. The operations are complaining that they cannot do vendor research. What is a best practice?

The solution for allowing you to do research on invoices filed by batch will depend on several

Right way to calculate DPO

Q: How do most companies calculate DPO on a monthly and yearly basis? At my company, we calculate

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Accounting

A company that purchases from overseas receives the invoice before the goods. They use standard costing method and want to post into inventory upon receiving the invoice. Is this ok?

Is it a best practice to determine the accounting period based on invoice date instead of service period? If I understand the correctly, we would need to setup a reversing accrual for regular expenses. Is that correct?

We have some vendors, who for whatever reason, are billing us many months after work is complete. How do you handle it when a vendor delays invoicing you for work that has been completed or supplies that have been received?

Extending a lease for PCs: The original FASB13 test was conducted and the lease came back as an operating lease. The lease expires at the end of this year. Our IT staff wants to extend the lease another year. Do we need to retest the lease?

DPO: break out the purchases(COGS) from our discount term suppliers separately to find the DPO, calculate the DPO on the non-discount term suppliers. Is this calculation any different than the normal way?

I'm trying to find rules that will help me determine if the painting part of a construction project can be capitalized. We are also thinking that this also applies to carpet, are you inclined to agree with me?

How do we use the chart of the accounts to verify coding?

We have a lot of honorarium payments submitted weekly. My company uses check request for anything we do not have a physical invoice for. For auditing purposes, is it acceptable to have a check request with no documentation attached?

Currently we file by batch number rather than alphabetically. The operations are complaining that they cannot do vendor research. What is a best practice?

Right way to calculate DPO

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