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Different Product receipt accounting entries

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Posted on by Karthik Shriramneni

Hi,

While posting product receipt in a company with UK localization, system is journalizing as follows: -

Only 1 Voucher

Cost of purchases material received Dr
Purchase accrual account Cr

Whereas in case of India, System is journalizing as follows: -

1st Voucher

Cost of purchases material received Dr

Purchase expenditure un-invoiced Cr

2nd Voucher

Purchase expenditure un-invoiced Dr
Purchase accrual account Cr

Why this behavior is different, is there any setup by which we can control this ??

UK Localization

India Localization

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Karthik Shriramneni 12 on at

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Different Product receipt accounting entries

But MS Docs clearly says there will be two vouchers for product receipt posting. This is global doc not a country specific.

Not only UK , I have seen this behavior in US, Spain, UK etc. Is there any setup controlling this ??

Purchase order posting - Finance | Dynamics 365 | Microsoft Learn
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BillurSamdancioglu 15,075 Most Valuable Professional on at

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Different Product receipt accounting entries

According to localizations, it is possible that posting may vary.

So it is better if you can read the country specific localizations.
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Community member 4 on at

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Different Product receipt accounting entries

Hi,

Your system's journalizing behavior varies across the UK and India localizations, most likely due to differences in accounting legislation and procedures between the two countries. These variations may have an impact on the way financial statements record and classify transactions.

The product receipt in the UK seems to be being journalized by your system using a single voucher, which debits the Cost of Purchases/Materials Received account and credits the Purchase Accrual Account. This strategy takes into account the fact that the purchase cost is recognized as soon as the materials are received.

But in India, it appears that there are two vouchers in a system. The first voucher credits the Purchase Expenditure Un-invoiced account and debits the Cost of Purchases/Materials Received account. This shows that the expense was recognized from the outset even before an invoice was received. After that, the second voucher shows that the accrued expense was transferred to the correct account upon receipt of the invoice by debiting the Purchase Expenditure Un-invoiced account and crediting the Purchase Accrual Account.

Regards,

Pargunan D
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Kevin Xia Microsoft Employee on at

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Different Product receipt accounting entries

Hi,

Laws, regulations or audit requirements vary from country to country, so localized content will be different. If you want to use other certain localization features from other countries, you can only do this by custom development, if you don't have a developer, you can ask Microsoft partners for help, refer to this link: Find the right app | Microsoft AppSource.

official documents refer to these links:

India overview - Finance | Dynamics 365 | Microsoft Learn

United Kingdom overview - Finance | Dynamics 365 | Microsoft Learn

Best regards,

Kevin

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