Hi everyone,
I have a scenario in Dynamics 365 Business Central and would like to understand the correct and supported way to handle it using the General Journal page.
Scenario
A Purchase Invoice is already posted, and later an additional freight or shipment cost needs to be recorded. (This is quite frequent)
Important clarification:
- This freight is not added as an Item Charge.
- It is posted purely as a G/L Account type line.
- No inventory or item value adjustment is involved.
The freight should be posted to a Freight or Expense G/L Account and should also increase the vendor balance. It should be clearly traceable back to the original Posted Purchase Invoice.
The standard Correct or Cancel followed by Credit Memo and New Invoice works, but it is too heavy for frequent small freight adjustments. The user is worried about the space it will take and the confusion about which is the correct invoice.
Idea using General Journal
Instead of reversing the posted purchase invoice, the idea is to use the General Journal and post an additional entry as follows:
- Account Type = Vendor
- Account No. = Same vendor as the posted purchase invoice
- Bal. Account Type = G/L Account
- Bal. Account No. = Freight or Expense G/L Account
- Amount = Freight amount
To logically link this entry to the original invoice, use the Posted Purchase Invoice No. as the Document No. and/or External Document No.
This way:
- A Vendor Ledger Entry is created
- G/L is impacted correctly through posting groups
- Vendor balance increases
- No new purchase invoice document is created
- The original posted purchase invoice remains unchanged
Questions
- Is posting freight as a G/L Account line via the General Journal (Vendor to G/L) a supported and acceptable approach for this scenario?
- From an audit and reporting perspective, is this approach generally acceptable?
- Are there any known considerations around different dimension of BC when handling freight this way as a G/L line and not as an Item Charge?
Goal
The goal is to avoid frequent credit memo and re-invoice cycles, keep the original posted purchase invoice intact, record freight strictly as a G/L expense, and maintain clear traceability between the posted invoice and the additional freight amount.
