Provision Import Cost Example.xlsx

	A	B	C	D	E	F	G	H	I	J	K	L	M	N	O	P	Q	R
1
2		1
3			Com	Tipe		Unit	Amount/Unit	Total Amount
4			COM 08020	CAYENNE, WP1ZZZ9PZ8LA26623		1	2,145,739,572	2,145,739,572
5			NC-070236	CAYENNE TURBO WP1ZZZ9PZ8LA91224		1	922,582,708	922,582,708	a
6								3,068,322,280
7
8		Com	LC Insurance	LC Import	Shipping Insurance		LC No.	Invoice	Date	Original Amount	Freight Charges	Total	Rate	IDR	Prov. Import Cost	Total	Bill of Lading
9		COM 08020	PT Asuransi QBE Pool Indonesia	39755	Marine Cargo Insurance		00001LCG0804598	1301032537	39770	38,831	1,321	40,152	16,500	662,508,000	810,849,481	1,473,357,481	39702
10		NC-070236	PT Asuransi QBE Pool Indonesia	39322	Marine Cargo Insurance		888LC700471	P00231	39282	70,550	510	71,060	12,983	922,582,708	-	922,582,708	39314
11														Audited balance		2,395,940,189
12														Client balance		3,071,067,989
13														Difference		(675,127,800)	overstated
14														Client Adjustment		671,717,319
15		Com	IDR	COGS	Difference		Sales Date							Difference		(3,410,481)	overstated
16		COM 08020	1,473,357,481											AJE no. 11		2,745,709
17		NC-070236	922,582,708													(664,772)	overstated
18
19														Dr. Other exp		664,772
20														Cr. Inventory unit			664,772	AJE no.13
21														(entry to adjust unidentified overstated record of inventory unit to othe exp)
22
23
24		Provision Import cost - Porsche
25
26		The provision import cost is such an accrual recorded in company. It related to freight cost which company must pay.
27		When the goods arrived, the invoice does not arrived yet. The company record:
28		Dr. Inventory - SP
29		Cr. Provision import cost
30
31		When the invoice arrived
32		Dr. Provision import cost
33		Cr. Bank
34
35		However, client has wrong recorded when the invoice arrived by journal as follow:
36		Dr. Inventory unit		671,717,320.00
37		Cr. Bank			671,717,320.00
38		It makes overstated record in inventory unit, so that we propose adjustment as follow:
39
40		Audited balance			-
41		Client balance			(546,708,403.00)
42					546,708,403.00
43			Payment		671,717,320.00
44					(125,008,917.00)
45
46
47		Dr. Provision import cost - Porsche		546,708,403.00
48		Dr. Other exp		125,008,917.00
49		Cr. Inventory unit - Porsche			671,717,320.00		AJE no. 14
50		(entry to adjust error in record of payment of provision import cost)
51
52
53
54
55
56
57		Notes:	All of the vehicles are imported from Porsche AG Germany
58			The company recorded its inventories value at the time when the goods are still on the way. Nevertheles, when the goods have arrived, the company costs the value as cost of good sold,
59			bacause all of ordered goods are sold directly to PT Autorama Euroasia as an authorized dealer of Porsche.
60			For information, the ordering of inventories was referred to sales order from customer, in other words, the purchasing of inventories is case by case, thus there is no stock of inventories physically.
61
62
63
64		a	Satisfactory checked to supporting document
65
66	Audit procedures:
67			Vouch to supporting document
68			Test of Pricing based on invoice
69
70	Conclusion: The account is fairly stated
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100