![]() This is NOT revenue, as they are merely offsetting their initial investement, and should not be recorded as such. Although this may seem as if the area is “selling” you a product, they in fact are not, they are merely supplying a product to you, at a reduced rate (most times) due to bulk purchasing. ![]() In this instance a journal entry would be performed to reimburse the department who originally purchased the item (this would be a CREDIT) and the department who is receiving the item would be charged (this would be a DEBIT) to offset the expense of the original purchase. The University’s ITS Division as well as some individual departmental/school and college divisions will often receive a reduced rate for software or hardware purchases made in bulk. ![]() A journal entry for this instance would require a DEBIT to the appropriate travel line and a CREDIT to the office expense line.
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