Manufacturing
Purchase of Raw Materials on Credit
Recording the arrival of raw materials (steel, plastic, etc.) to the warehouse.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Raw Materials Inventory | Asset (+) | 5,000.00 | - |
| Accounts Payable | Liability (+) | - | 5,000.00 |
💡 Accountant's Note
Raw materials are assets, not expenses. They only become an expense (COGS) once they are converted into a finished product and sold to a customer.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.