Postings for Accounts Payable Invoices
An Accounts Payable (AP) invoice debits the Received Goods account and credits the AP account. This process follows for standard or weighted average costing methods.
The weighted average costing method calculates variances for costs when items are received.
Sample Ledger for Accounts Payable Transaction:
| Date | Transaction/Accounts | Debit | Credit |
|---|---|---|---|
| April 1 | Accounts Payable Invoice | ||
| Received Goods | 44 | ||
| Accounts Payable | 44 |
This shows how the AP transactions post when using the weighted average costing method.