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Recognizing paying to suppliers

Recognizing supplier payables is one thing; it’s another to pay those payables however. We’ll discuss separately all the routines governing the handling and an appropriate approach when it comes to supplier invoices (i.e. how you ensure that you’re paying for the right service or material, in the right price and in due time), as it […]

Recognizing purchase of materials

Making purchases is part of everyday business. You cannot cooperate without buying certain services or materials (unless you’re actually producing materials and finished products from them yourself and don’t require any outside service, i.e. internet, paper to print invoices on etc.). So as such you need to familiarize yourself with recognizing accounting for such payables […]

Sales prices

Your sales prices are values you consider sufficient for a product or for a service to cover expenses made directly for the sellable unit and to also cover for those general expenses not related to production or providing the service (your company’s administrative, marketing and other expenses).  (more…)

Writing receivables off the balance sheet

So you’ve identified that a certain receivable balance is impaired and the collection of the outstanding amounts is unlikely. Once you’ve done that, you ought to write those receivables down in the sense that you’d recognize a provision within the accounts receivable group on the balance sheet to show the amount between what was initially […]

Controls over revenue and receivables

Why have controls over revenues and receivables? Your company’s revenues are what it makes in selling its services and goods and it’s what helps you cover expenses made. Recognizing revenue is one thing, but with it you’d also recognize a receivable and it’s what ensures you also get resources from what you earned.  (more…)

Writing down assets in their value

An asset is written down in value if and only if the recoverable amount identified is lower of the assets carrying value recognized within the books. On the basis of the test for an impairment you’ve identified the assets recoverable amount (as mentioned earlier it’s highest of either the ‘value in use’ or ‘fair value […]