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  • Letter of Credit Accounting entries

    Hi All,

    I must admit that when it comes to practical life the things are quite different. I graduated in Accountancy with distinctions but could not figure out how will Peachtree handle L/C transactions.

    Our purchase is 90% import based. under our existing home made system we create each new account for individual L/C in "prepaid expenses" catagory. all charges are debited to this account:

    l/c opening charges debit L/C account credit bank account
    document retirement debit l/c account credit bank account
    duty paid debit l/c account credit bank account
    clearing chgs debit l/c account credit forwarder a/c

    now l/c account shows the total charges incurred on each shipment. this is also our cost of sales. than we post purchase invoice and grand total of purchase invoice is credited to l/c account thus bringing the total of each l/c account balance to zero.

    purchase price of goods is than debited to inventory account for various purposes.



    how we can do this in peachtree?

    peachtree keep the A/P outstanding untill it is paid manually. can we make a way whereby the amount of purchase is credited automatically to L/C account. because vendor is already paid by the bank and we have posted entry as "document retirement"

    imran rashid
    pak tire corp
    pakistan.
    ====================
    Pak Tire Corp
    GPO Box: 187
    Faisalabad
    Pakistan
    dragon@fsd.comsats.net.pk
    ====================

  • #2
    l/c

    DONE

    CHANGE 15XXX FOR EACH L/C.
    FOR ALL EXP POST JOURNAL VOUCHER AS AND WHEN EXP OCCUR
    WHEN L/C GOODS REACH THAN ENTER PURCHASE WITH A/P AS 15XXX.
    ====================
    Pak Tire Corp
    GPO Box: 187
    Faisalabad
    Pakistan
    dragon@fsd.comsats.net.pk
    ====================

    Comment


    • #3
      Letter of Credit Accounting entries

      Dear Imran
      Al Salam Alaikom Wa Rahmat Allah Wa Barakatoh

      Brother I am facing the same problem with Peachtree Quantum and have no idea how to post l/c, our accounting is not linked to our bank account and therefore is not updated when an LC is paid, I calculate all expenses including l/c charges customs and all other expenses and directly add to the total purchase cost and only then make a purchase invoice using the total cost incurred.

      It seems that you have found away to fix all of the l/c transactions and would appreciate if you kindly let me know the steps as I am a basic accountant.

      May Allah bless you and your family with happiness, prosper, and successfulness Inshallah

      Sincerely,

      Adel

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