[Question] Processing GRN on Pastel Accounting

[NomvelisoBovu]

How can I process GRN on pastel without affecting a VAT control account,

[Neville Bailey]

The VAT control account is not affected at all when a GRN is processed. The double entry is debit Inventory and credit GRN Accrual account (with the VAT exclusive amount).

The VAT control account is only affected when you link a supplier invoice to a GRN. The double entry is debit GRN Accrual account (VAT exclusive) and credit Suppliers (VAT inclusive) and credit VAT (VAT amount).

[NomvelisoBovu]

Thanks Nevile, What the vat amount of the GRN is on the debit side of your Vat Control Account how do you correct that?

[Neville Bailey]

I don't understand what you are saying, as a GRN does not create a VAT entry.

[NomvelisoBovu]

Is it wise to process a supplier invoice that is going to affect the suppliers invoice that is going to affect VAT control account and also capture the same amount in cash book

[Neville Bailey]

Yes, it is fine doing that.

When you process the payment in the cashbook, there is no VAT effect, as the double entry will be to debit the supplier account with the VAT inclusive amount and credit the bank account.

[NomvelisoBovu]

Happy new year everyone. how can I allocate money from a bank account to another bank account of the same company

[Mike C]

Hi NomvelisoBovu.

You need to tranfer it out of the first Bank account into a "transfer control account" then again you transfer it out of the "tranfer control account" into the second bank account. In that way the "transfer control account" stays at zero (same amount in same amount out) and your Bank accounts reflect the tranfer out and the transfer in.

[NomvelisoBovu]

depreciation

Hi NomvelisoBovu.

You need to tranfer it out of the first Bank account into a "transfer control account" then again you transfer it out of the "tranfer control account" into the second bank account. In that way the "transfer control account" stays at zero (same amount in same amount out) and your Bank accounts reflect the tranfer out and the transfer in.

Thanks Neville.

Is it wise to process depreciation journal at the end of the year. Wont affect the bank balance

[HJVW]

I have an amount in the Trial balance that reads 9100/000 GRN Accrual Account 28,243.79. Where does it originate?

[Neville Bailey]

I have an amount in the Trial balance that reads 9100/000 GRN Accrual Account 28,243.79. Where does it originate?

When you process a GRN (Goods Received Note) to bring stock into the system, the Inventory Control Account is debited and the GRN Accrual Account is credited. When you link a Supplier Invoice to the GRN, the GRN Accrual Account is debited and the Supplier Account / Control Account is credited.

[HJVW]

So, am a right in assuming that the amount on my trial balance is saying that there are Grn's that are not invoiced yet?

[Neville Bailey]

So, am a right in assuming that the amount on my trial balance is saying that there are Grn's that are not invoiced yet?

Correct.

[HJVW]

If I look at the inside of the account it looks like the Grn's are being offset against the Purchase orders.

[Neville Bailey]

If I look at the inside of the account it looks like the Grn's are being offset against the Purchase orders.

Yes, that's possible.

The usual process is to capture a Purchase Order, which is then linked to a GRN, which is then linked to a Supplier Invoice.