Register now or log in to join your professional community.
A suspense account is a temporary account used to record discrepancies and adjustments pending analysis and final classification. Sometimes, a suspense account is used for money-in -transit pending withdrawal. A suspense account should be cleared later on through reclassifying transactions from the suspense account to a proper account. Suspense accounts are stil used in ERP systems.
A suspense account is a necessary evil to book transactions temporarily, which at the time of transactions are not known where to be boooked. They still exist in ERP environments, but it is highly advisable to avoid it.
Suspense Account is is a temporary account used requiring further clarification which has to be adjusted by journals soon the the clarification are received.At times , amounts are drawn on suspense for which nature and quantum of payments are not known at the time of drawal.So when these are ascertained, the adjustments are made to the respective accounts.In business, these are common practices.Employees cannot be expected to incur the business payments always and exprcted to claim.Credit also cannot be expected for emergency payments. Hence the suspense accounts.Even in ERP surroundings, such business transactions are unavoidable.
Hello,
A suspense account is an account in the general ledger that is used to temporarily store any transactions for which there is some uncertainty about the account in which they should be recorded.
Yes, nowadays in current ERP based environment the suspense account is still used.
For example I read the analysis on the suspense accounts evolution on a monthly basis.
Thank you
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.