IT Financials Glossary

Receiving

Posted in Purchasing by mgentle on August 26, 2010

Receiving: the accounting process whereby the goods or services associated with a PO are recorded as having been delivered. Since most IT purchases are for services and for people (contractors and consultants) rather than physical goods in an inventory or stock environment, receiving usually means entering the number of days people have worked (time and materials) or the monetary amount corresponding to a project milestone payment (fixed-price contract).

In accounting software systems, once goods or services have been received, accruals can be generated.

Advertisements

One Response

Subscribe to comments with RSS.

  1. Accruals said, on April 5, 2011 at 20:05

    […] In accounting software systems, accruals can be generated after the corresponding goods or services have been received. […]


Leave a Reply to Accruals Cancel reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: