I wanted to understand the logic behind the booking in of shipments. In particular I wanted to understand what the balance in the Import Cost Clearing Account (635-000-00 in my demo data) was and the mechanism by which this clearing account was “cleared out”.
Here is a transaction I have followed through:
Notice that the net effect of this series of transactions is for an increase in the Import Cost Clearing Account of $1105.67.
Now I asked Beth Block from Jiwa Support to clarify the journals. This is what she said:
The way import cost clearing works is as follows:
Part A = 1,000.00
Costs = 200.00
Costs are entered and apportioned to the purchase orders – no journal at this stage
Book in Stock
Debit – Delivered Asset 1,200.00 (cost of stock + import cost)
Credit – Import Cost Clearing 200.00
Credit – Delivered Liability 1,000.00
Invoice Import Cost invoice
Debit – Import Cost Clearing 200.00
Credit – Creditors Control 200.00
Invoice Shipment Invoice for Part A
Debit – Delivered Liability 1,000.00 (reversing out Book in of stock)
Credit – Delivered Asset 1,200.00 (reversing out Book in of stock)
Debit – Inventory Value 1,200.00
Credit – Creditor Control 1,000.00
An amount in the Import Cost Clearing account represents either import cost invoices not invoiced yet or stock not yet booked in.
In your examples the first three journals are posting the import cost invoices, the last is booking in the stock.