How to Record Wafer Capacity Reservation Fees
Accounting for advance payments made to foundries to secure future production capacity.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Prepaid Expenses - Capacity Reservation | Debit | 1,000,000.00 | - |
| Cash | Credit | - | 1,000,000.00 |
💡 Accountant's Note
Advance payments to foundries for guaranteed wafer starts are treated as prepaids and amortized into cost of sales as wafers are delivered.
Practitioner & Systems Framework
💻 ERP Architecture
Amortization schedules linked to production output receipts.
⚠️ Audit Flags
Long-term prepaids without clear delivery schedules.
📄 Required Documentation
Capacity reservation agreement and payment confirmation.
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