peterg
September 1, 2020, 1:57am
36
No, that’s the whole point. Like I said before, you should really reread Nabin’s explanation of the posting date/transaction date distinction. It clarifies all these issues.
In this post, I will try to explain what we are currently doing, the drawback and advantages of that method. At the same time, what changes we are proposing and implication of that.
Let’s take following entries to explain our scenario.
Stock Valuation Method: FIFO
Fiscal Year Records:
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Stock Ledger Entry
[image]
Accounting GL Entries
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Now, let’s say, we do a back-dated incoming entry on 15-02-2016 for the same item with 4 qty at $1100.
Currently, based on the back-dated e…