To All the Accounting Guru's (HELP)

Yahoo Archive
1
Rick & Cheryl -

Thanks for your response - I agreed with you it should be in Deferred
the person in A/R says no it should be on the income account. But I
think I won. (You guys/girls are teaching me well :)

Thank you


Best Regards,


Dina Hieber
Vamco International, Inc.
(412) 963-7100 Phone
(412) 963-9511 Fax

-----Original Message-----
From: Ludwig, Rick [mailto:RickL@...]
Sent: Friday, October 31, 2003 3:19 PM
To: 'vantage@yahoogroups.com'
Subject: RE: [Vantage] To All the Accounting Guru's (HELP)


Dina-

>From an accounting standpoint, yes, it should be charged to a Deferred
Revenue account. Under the matching principle... (yadda, yadda, yadda)
...you have not incurred the matching/offsetting expense yet. It should
be
shown on the balance sheet as a liability on account of if the shipment
never happens, you would/should owe them the prepaid freight charge.
Once
the actual shipping expense is incurred, it should be recognized as
income
(or as an offset to the incurred shipping expense).

Thanks!



Rick Ludwig



-----Original Message-----
From: Dina Hieber [mailto:dhieber@...]
Sent: Friday, October 31, 2003 2:10 PM
To: vantage@yahoogroups.com
Subject: [Vantage] To All the Accounting Guru's (HELP)


Good Afternoon,

I have an invoice that we are sending to a customer for expediting
charges (for a product that has not shipped yet) The project is due to
ship in 3 weeks. Anyways, Should this expediting charge go into the
Income account now - or into deferred then moved once the project has
shipped?

What is the correct way do this?

Best Regards,


Dina Hieber
Vamco International, Inc.
(412) 963-7100 Phone
(412) 963-9511 Fax




[Non-text portions of this message have been removed]



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2
Good Afternoon,

I have an invoice that we are sending to a customer for expediting
charges (for a product that has not shipped yet) The project is due to
ship in 3 weeks. Anyways, Should this expediting charge go into the
Income account now - or into deferred then moved once the project has
shipped?

What is the correct way do this?

Best Regards,


Dina Hieber
Vamco International, Inc.
(412) 963-7100 Phone
(412) 963-9511 Fax




[Non-text portions of this message have been removed]
3
The Rule is to match revenues to expenses.
Have you incurred the cost of "expediting" the order - yes invoice. If you haven't then you should wait to invoice till you have "expedited" the order. From what it sounds like you have not expedited the order so you should not invoice.





-----Original Message-----
From: Dina Hieber [mailto:dhieber@...]
Sent: Friday, October 31, 2003 2:10 PM
To: vantage@yahoogroups.com
Subject: [Vantage] To All the Accounting Guru's (HELP)


Good Afternoon,

I have an invoice that we are sending to a customer for expediting
charges (for a product that has not shipped yet) The project is due to
ship in 3 weeks. Anyways, Should this expediting charge go into the
Income account now - or into deferred then moved once the project has
shipped?

What is the correct way do this?

Best Regards,


Dina Hieber
Vamco International, Inc.
(412) 963-7100 Phone
(412) 963-9511 Fax




[Non-text portions of this message have been removed]



Yahoo! Groups Sponsor

ADVERTISEMENT
<http://rd.yahoo.com/M=267637.4116719.5338353.1261774/D=egroupweb/S=1705007183:HM/A=1754451/R=0/SIG=11tpj98m3/*http://www.netflix.com/Default?mqso=60178323&partid=4116719> click here
<http://us.adserver.yahoo.com/l?M=267637.4116719.5338353.1261774/D=egroupmail/S=:HM/A=1754451/rand=706817825>

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and Crystal Reports and other 'goodies', please goto: http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto: http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto: http://groups.yahoo.com/group/vantage/links

Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service <http://docs.yahoo.com/info/terms/> .




[Non-text portions of this message have been removed]
4
Dina-

From an accounting standpoint, yes, it should be charged to a Deferred
Revenue account. Under the matching principle... (yadda, yadda, yadda)
...you have not incurred the matching/offsetting expense yet. It should be
shown on the balance sheet as a liability on account of if the shipment
never happens, you would/should owe them the prepaid freight charge. Once
the actual shipping expense is incurred, it should be recognized as income
(or as an offset to the incurred shipping expense).

Thanks!



Rick Ludwig



-----Original Message-----
From: Dina Hieber [mailto:dhieber@...]
Sent: Friday, October 31, 2003 2:10 PM
To: vantage@yahoogroups.com
Subject: [Vantage] To All the Accounting Guru's (HELP)


Good Afternoon,

I have an invoice that we are sending to a customer for expediting
charges (for a product that has not shipped yet) The project is due to
ship in 3 weeks. Anyways, Should this expediting charge go into the
Income account now - or into deferred then moved once the project has
shipped?

What is the correct way do this?

Best Regards,


Dina Hieber
Vamco International, Inc.
(412) 963-7100 Phone
(412) 963-9511 Fax




[Non-text portions of this message have been removed]



Yahoo! Groups Sponsor

ADVERTISEMENT

<http://rd.yahoo.com/M=267637.4116719.5338353.1261774/D=egroupweb/S=17050071
83:HM/A=1754451/R=0/SIG=11tpj98m3/*http://www.netflix.com/Default?mqso=60178
323&partid=4116719> click here

<http://us.adserver.yahoo.com/l?M=267637.4116719.5338353.1261774/D=egroupmai
l/S=:HM/A=1754451/rand=706817825>

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
<http://groups.yahoo.com/group/vantage/files/.>
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
<http://groups.yahoo.com/group/vantage/messages>
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links
<http://groups.yahoo.com/group/vantage/links>

Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
<http://docs.yahoo.com/info/terms/> .




[Non-text portions of this message have been removed]