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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Can accounts payable c...
Microsoft Dynamics GP (Archived)

Can accounts payable change the dollar amount when recieving in GP?

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Posted on by C BROWN 30

Is it possible for accounts payable to change the recieving amount in GP? For example, If a PO is made in the amount "not to exceed $400" and the invoice comes in at $280, can A/P change the amount once recieving or does the person who created the PO have to update the PO to reflect the new amount? Also in some cases the numbers a vendor uses causes the line items to be out by just a few cents, can A/P adjust these amounts?

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  • Dale Coulthard Profile Picture
    Dale Coulthard 3,055 on at

    If A/P is doing a match process (ie, the receipt has already been made), then A/P needs to leave the price alone.  The reason for this is the receiving process used the PO unit price and accrued a liability based on that unit price.  When the matching process is done by A/P, if the invoice is different, they should leave the line item alone for pricing because GP uses the unit price which will then create the value that equals the liability value accrued which zeroes out the accrued liability account.  

    Example: Recieving department receives in 100 units at $2 (which is the PO price per unit).  GP records to inventory $200 and books an accrued liability of $200.  

    If the invoice comes in at $1.50 per unit (ie, $150), then the A/P department has to use the $2 price per unit for the line item which GP will then assign that amount of $200 as a debit to the accrued liability account.  Then, in the Trade Discount field, we key in the $50 difference.  We then have to change the account number for this "trade discount".  For us, we take it to cost variance in cost of goods area because the inventory value was over stated, so this cost variance account will offset the overage.  By using the trade discount field, the overall value of the matching makes it tie to the vendor invoice and by not changing the unit price for the line item, the accrued liability account is washed to zero.

    If the vendor price is higher than the PO and everyone in your organization agrees that the price is correct and the PO unit price was too low, but receiving has already happened, then follow the same steps, except instead of using the Trade Discount field, use the Miscellaneous field.  By doing this, the overall value should now tie to the vendor invoice.

    Once the item on the PO is received against, I do not believe that the PO can be updated for a price change, because a transaction has already happened so I do not think the system will auto correct the received value because there are down stream transactions (like matching) that could have already happened and would cause problems for the down stream transactions.

    Best regards,

    Dale

  • Community Member Profile Picture
    Community Member on at

    I Think the question was CAN A/P change the amount, and if so, how can they do it.  

    In my opinion, your answer was more along the lines of your opinion as to the approriateness of whether or not A/P SHOULD be changing costs when matching invoices to receipts.

  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

    Yes, the person entering a PO receipt or invoice CAN change the unit cost IF 'Allow Editing of Costs in Receiving' is checked in PO Processing Setup (Purchasing>>Setup>>Purchase Order Processing'.

  • Community Member Profile Picture
    Community Member on at

    Thank You!

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