{"id":150384,"date":"2026-10-12T12:06:25","date_gmt":"2026-10-12T12:06:25","guid":{"rendered":"https:\/\/docs.daftra.com\/faq\/%d9%87%d9%84-%d8%aa%d8%a4%d8%ab%d8%b1-%d8%ad%d8%a7%d9%84%d8%a9-%d8%a7%d9%84%d8%aa%d8%b3%d9%84%d9%8a%d9%85-%d8%aa%d8%ad%d8%aa-%d8%a7%d9%84%d8%aa%d8%b3%d9%84%d9%8a%d9%85-%d9%85%d8%b3%d8%aa%d9%84\/"},"modified":"2026-10-13T09:11:19","modified_gmt":"2026-10-13T09:11:19","slug":"does-the-delivery-status-undelivered-delivered-affect-financial-statements-and-reports","status":"publish","type":"faq","link":"https:\/\/docs.daftra.com\/en\/faq\/does-the-delivery-status-undelivered-delivered-affect-financial-statements-and-reports\/","title":{"rendered":"Does the delivery status (Undelivered \/ Delivered) affect financial statements and reports?"},"content":{"rendered":"
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Yes, the delivery status affects journal entries and reports, but only in one specific area: inventory and cost of sales<\/strong>. Sales, tax, and the client balance are recorded when the invoice is saved, regardless of whether it has been delivered.<\/p>\n

What happens from an accounting perspective?<\/h3>\n\n\n\n\n\n\n
Event<\/th>\nWhat is recorded<\/th>\n<\/tr>\n
Saving the invoice (delivered or undelivered)<\/strong><\/td>\nInvoice entry: debit Client, and credit Sales and Tax.<\/td>\n<\/tr>\n
Confirming delivery (in full or for an item)<\/strong><\/td>\nInventory issue movement dated on the delivery date, and a cost of sales journal entry: debit Cost of Sales and credit Inventory.<\/td>\n<\/tr>\n
Cancelling delivery<\/strong><\/td>\nThe associated inventory issue movements and cost of sales journal entry are reversed.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Impact on reports and financial statements<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n
Report<\/th>\nBefore the invoice is delivered<\/th>\nAfter delivery is confirmed<\/th>\n<\/tr>\n
Income Statement (Sales)<\/strong><\/td>\nSales and tax appear in full.<\/td>\nNo change.<\/td>\n<\/tr>\n
Income Statement (Cost of Sales and Profit)<\/strong><\/td>\nThe cost of goods is not recorded, so gross profit appears higher than it actually is.<\/td>\nCost of sales is recorded, and the actual profit is shown.<\/td>\n<\/tr>\n
Balance Sheet (Inventory)<\/strong><\/td>\nThe value of the goods remains included in inventory.<\/td>\nInventory value decreases by the cost of the delivered goods.<\/td>\n<\/tr>\n
Balance Sheet (Clients)<\/strong><\/td>\nThe amount appears as due from the clients.<\/td>\nNo change.<\/td>\n<\/tr>\n
Trial Balance<\/strong><\/td>\nOnly the invoice entry appears.<\/td>\nThe cost of sales entry also appears.<\/td>\n<\/tr>\n
Inventory Reports and Product Movement<\/strong><\/td>\nThe quantity is not deducted and remains included in the available balance.<\/td>\nThe quantity is deducted on the delivery date.<\/td>\n<\/tr>\n
Invoice Profit and Profit Reports<\/strong><\/td>\nThe full cost is not reflected.<\/td>\nThe correct cost and profit are shown.<\/td>\n<\/tr>\n
Tax Return<\/strong><\/td>\nThe invoice is included according to its date.<\/td>\nNo change.<\/td>\n<\/tr>\n
Client Statement and Payment Status<\/strong><\/td>\nNot affected.<\/td>\nNot affected.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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\ud83d\udec8<\/span><\/p>\n

Note:<\/strong> For a partially delivered invoice, the cost is recorded and quantities are deducted only for the delivered items.<\/p>\n<\/div>\n

What should I do before issuing financial statements?<\/h3>\n