I am sorry but you are caught by the terms of sale. CIF means Carriage Insurance and Freight which means that you are responsible for the goods until they are delivered to their final destination - the customer - and title does not pass until then. You have no legal alternative but to keep them on your books as your stock until that moment. What you can do is something similar to what I already described - move the goods to a virtual stock location called goods in transit and do the goods issue from there when they arrive at the customer, so that is your delivery which generates your invoice and you have both sales and cost of sales recognized at the same point in time. This should satisfy the auditors and keeps your books straight. Rgds, Roy mark as helpful. Roy Brookes FFA, FInstBA, SAP? Financials Expert Senior SAP? Financials Consultant Published Author Tel: +49 171 268 9635 (mobile) Tel: +49 40 793 19642 (landline) email@removed email@removed email@removed Skype ID: roystonbrookes www.RoyBrookes.com www.Software-Partner-Solutions.com www.linkedin.com/in/roybrookes SAP? Expert Index Registration: CRF **42819* SAP? Referral Partner for Business One
| | | ---------------Original Message--------------- From: Raghavendra badkilaya Sent: Tuesday, July 26, 2011 12:35 PM Subject: FOB Destination - Accounting treatment We have a similar requirement insisted by our Auditors pertaining to sale of machines/goods under CIF basis. They are insisting us to recognise our export sale transaction which is in CIF basis, to recognise the sale in books upon receipt of the goods by the customer which say takes about 30 to 40 days from the date of shipment. Ticklish question here is cut off period, i.e. transaction happening during last fortnight of the financial year. Can somebody suggest best process to handle this type of requirement. Raghavendra Badkilaya GM-Finance - Ace Designers Ltd. | | __.____._ Copyright © 2011 Toolbox.com and message author. Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251 | | Roy B SAP Accounting Top Contributor
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