Borrow: prepayment loan: bank deposit
When the invoice issued by the supplier is received, the advance payment will be directly reduced.
Borrow: material procurement
Debit: Taxes payable-VAT payable-input tax.
Credit: advance payment, when the advance payment is written off.
As long as the goods didn't arrive, you gave him the money in advance, that is, the "advance payment", but he didn't invoice you, because he didn't set the price at that time, and he only received part of the payment or deposit. Don't worry at this time, hang this prepayment in the prepayment account first, and then cancel the prepayment account after the price is determined and he gives you all the money. The rest is filled by cash and banks.
Write-off is the concept of accounting, which means to offset each other, that is, to offset the wrong accounting records so that they can be eliminated within the same amount. To put it simply, it is to make an opposite accounting entry according to the original entry, or to make the same red-ink entry, erase the original account or clear the account.
Basic explanation
1: deduct part or all of the loss amount of the asset value on the book. Write off abandoned inventory from the books.
2. Selling futures and securities originally purchased on commodity exchanges or stock exchanges.
3. "Neutralization intervention", also known as sterilization intervention, is one of the important policies of the government to manage the exchange rate, also known as sterilization policy. After the central bank intervened in the foreign exchange market, it made a write-down to make up for the impact on the money supply.
detailed description
1. In accounting processing, write-off refers to hedging the entries with the same two factors and the same reason, but due to accounting errors, so as to find out the reasons and corresponding accounts for the work done after the original error treatment, and then positively and negatively hedge the wrong accounts, and then correct them, such as+1 and -65433.
2. "Neutralization intervention", also known as sterilization intervention, is one of the important policies of the government to manage the exchange rate, also known as sterilization policy. It means that the central bank trades foreign and domestic assets in the same amount but in opposite directions to offset the impact of foreign exchange intervention on the domestic money supply. There are four effects on foreign exchange intervention: when the central bank buys foreign assets but does not write them off, the foreign assets and domestic money supply of the central bank increase at the same time, while the domestic assets of the central bank remain unchanged; When the central bank buys foreign assets and write them off, the foreign assets of the central bank increase, the domestic assets decrease and the domestic money supply remains unchanged. When the central bank sells foreign exchange, but does not write it off, the foreign assets and domestic money supply of the central bank decrease at the same time, while the domestic assets of the central bank remain unchanged; When the central bank sells foreign exchange and sterilises it, the foreign assets of the central bank decrease, the domestic assets increase and the domestic money supply remains unchanged.