Pay first, then invoice, how to make an account?

If the enterprise has paid but the invoice has not arrived, it can be accounted by the account of "prepaid account". Prepayment refers to the money paid by an enterprise to the supplier in advance in monetary funds or monetary equivalents according to the purchase contract. Specific accounting treatment is as follows:

Payment has been made but the invoice has not been received, and the goods have not been put into storage:

When the enterprise pays: debit: advance payment.

Loans: bank deposits

When an enterprise receives an invoice, it will borrow materials in transit.

Taxes payable-VAT payable (input tax)

Credit: advance payment

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Payment has been made but the invoice has not been received, and the goods have been put into storage.

When the enterprise pays: borrow: raw materials.

Credit: accounts payable (goods put into storage according to temporary valuation)

When the invoice is received, the original red-ink account will be reversed to the estimated entry, and the following entries will be made:

Borrow: raw materials

Taxes payable-VAT payable (input tax)

Credit: advance payment

However, it should be noted that prepayment is not a financial asset, because it can not bring the expected cash inflow to the enterprise, but the inflow of inventory or fixed assets.