How to account for goods arriving before invoices are received later with clear examples

Detailed instructions on how to account for goods arriving before invoices, with specific examples from when the goods arrive at the warehouse but there is no invoice until receiving the VAT invoice.

I. Documents proving that the goods arrived before the invoice

To prove that the goods arrived before the invoice, the following documents are required:

• Goods delivery receipt (the delivery date must be clearly stated on the delivery receipt);
• Goods import and export vouchers of the parties;
• Terms of agreement on the contract of sale of goods.

Note: The above documents must clearly state the date of delivery of goods and the time of receipt of invoice.

II. How to account for goods arriving first and invoices coming later

1. When the goods arrive at the warehouse but there is no invoice yet

Debit 156, 152, 153: Quantity of imported goods x Provisional price;

There are 111, 112, 331: Quantity of imported goods x Estimated price.

Example 1:

Company fdiinvietnam.com ordered 100 office chairs from company B for sale. On August 10, 2022, party B delivered the chairs to fdiinvietnam.com with a delivery receipt with a provisional price of 700,000 VND/chair (VAT invoice not yet issued).

At that time, the value of the imported shipment is: 100 x 700,000 = 70,000,000 VND.

Provisions:

Debt 156: 70,000,000 VND;

There are 331: 70,000,000 VND.

>> See more: Types of invoices.

2. When receiving VAT invoice

2.1 Purchase price equals provisional price

Debit 133: Quantity x Price x Tax rate;

Credit account 11, 112, 331: Quantity x Purchase price x % Tax rate.

2.2 Purchase price is greater than estimated price

➨ Step 1: VAT accounting

• Debit account 133: Quantity x Purchase price x % Tax rate;
• Credit account 111, 112, 331: Quantity x Purchase price x % Tax rate.

➨ Step 2: Adjust the purchase value

• Debit account 152, 156: Quantity x (Purchase price – Provisional price);
• Credit account 111, 112, 331: Quantity x (Purchase price – Provisional price).

Example 2 : 

As in example 1, on August 12, 2022, Party B transferred the VAT invoice to fdiinvietnam.com with the invoice price of 710,000 VND/piece.

Reply: 

VAT on invoice is 100 x 710,000 x 8% = 5,680,000 VND;

Additional value of purchased goods: 100 x (710,000 – 700,000) = 1,000,000 VND.

Debit account 133: 5,680,000 VND;

Credit account 331: VND 5,680,000;

Debit account 156: 1,000,000 VND;

Credit account 331: 1,000,000 VND.

2.3 Purchase price is less than estimated price

➨ Step 1: VAT accounting

• Debit account 133: Quantity x Purchase price x % Tax rate;
• Credit account 111, 112, 331: Quantity x Purchase price x % Tax rate.

➨ Step 2: Adjust the purchase value down

• Debit account 111, 112, 331: Quantity x (Provisional price – Purchase price);
• Credit account 152, 156: Quantity x (Provisional price – Purchase price).

Example 3 :

Party B issues an invoice to fdiinvietnam.com for 650,000 VND.

VAT amount is: 650,000 * 100 * 8% = 5,200,000 VND;

Purchase value reduced: (700,000 – 650,000) x 100 = 5,000,000 VND.

Debit account 133: 5,200,000 VND;

Credit account 331: VND 5,200,000;

Debit account 331: 5,000,000 VND;

Credit account 156: 5,000,000 VND.

III. Questions related to how to account for goods arriving first and invoices coming later