Accounting at PO receipt Receiving Inventory Account DR AP Accrual Account CR

Accounting at Inspection No accounting entry. Accounting at PO Deliver(GRN) transaction Inventory Valuation Account (Inventory account assigned to item) DR Receiving inventory account CR Accounting for PO return to vendor IF Return is made after conducting inspection but before GRN preparation AP Accrual Account DR Receiving Inventory Account CR

IF Return is made after item is made part of inventory i.e after GRN preparation AP Accrual Account DR Inventory valuation account CR

Accounting for Issue to Production Consumption Account (e.g Raw Material consumed, Store consumed) DR Inventory Valuation Account (Inventory account assigned to item) CR