Different accouting principle among nations Some cross-national organizations have their own problem on financial accouting, because each country has its own Generally Accepted Accouting Principles. For example, in some north European countries, inventory is related with Profit & Loss. When the company receives the goods from vendor, it means that their profit will increase at the same time. So, there're two vouchers need to be post at that moment. One is "purchase" account in Debit and "change in inventory" in Credit. Another is "Inventory" account in debit and "Account payable" in credit. But in the same situation, Chinese accountant process it with different way in accordance with Chinese accounting principles. The Chinese voucher is simplier. It's Inventory in debit and AP in credit. So procurement doesn't influence gains in Chinese accouting. Another big difference is that Chinese divide separate expense account based on the department. For those expense from sales and market department, we use Sales expense account separately. The expense of Adminstration and management department, we book it with Mangement account. On the contrary, foreigner doesn't distinguish department in ledger accounts.