the sales that would have been used to reduce the prepayment would have been included in sales, that is how accounting would have happened.
Initial receipt of prepayment
Debit Cash US$60 million
Credit prepayment US$60 million
Reduction of prepayment using sales
Debit Prepayment US$60 million
Credit Sales US$60 million
Debit COGS $$$$
Credit Inventory $$$$It didn't cost TER anything in the end, if anything it benefited TER. Initially TER was going to pay interest on it, but for some reason both parties decided not do that. The funds were used by the vendor to secure shipments, hence why it was done. The money was used to pay down the EuroBond which had a high interest.
Ann: Quarterly Report - October to December 2022, page-34
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