Manage Goods in Transit Purchase order using Landed Cost in Microsoft Dynamics 365 Finance and operations- Part:4

Many times, customer comes up and says that we want to record invoice for the GIT purchase orders that means the orders which have been shipped by Supplier but not received at actual warehouse and customer wants to record the invoice for the same. So, how do we manage this?

Now this can be managed using new Landed cost module. In this process system will allow you to post Purchase order invoice and hold inventory in GIT warehouse.

Let us understand by one scenario:

1. Customer creates PO and confirms.
2. Vendors shipped the order along with PO invoice.
3. Customer must record invoice before receiving Goods.

Pre-requites: Enable Landed Cost in feature management.

Please go through earlier blogs in this series to understand “Landed Cost”.

Setup:

1. Setup terms on Delivery

2. Setup Warehouse with GIT mapping

3. Setup Posting profile for Landed cost GIT inventory account.

Process:

Step-1: Create and Confirm Purchase order

Note: Select Deliver term which has GIT enabled

Step-2: Create and Process Voyage for the Purchase order

Note: Read earlier blogs to see the voyage process.

Step-3: Process Purchase order Invoice

In this process, we will not post product receipt because goods are still in transit and not received at actual warehouse.

So, PO invoice should be done with orders quantity, once we post the Purchase order invoice system creates “Goods in transit” order against the Voyage crated for this purchase order.

Step-4: View Inventory Impact and financial impact on Voyage screen

Step-5: Now we can finally receive the GIT order from Voyage.

This will transfer the inventory from GIT warehouse to Main warehouse.

That’s it for this blog!!!

Thank you!!! Keep reading and sharing with your network!!!