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Purchase order Accrual setup

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Posted on by vinay prudvi

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Hi,

Can we use Accrual scheme for purchase order ?

Regards

Vinay Prudhvi

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vinitgoyal2005 6,332 on at

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Hi,

AFAIK, the Accrual scheme doesn't work for PO/SO. Have a look at docs.microsoft.com/.../accruals-overview

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vinay prudvi 173 on at

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Thanks Vinit Goyal,

Any possibility i mean with customization Accrual scheme work for PO/SO?

Regards

Vinay

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Junaid Idrees on at

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Hi Vinay,

Can you share some details what exactly is your business requirement to suggest you the better solution.

If you want to create accrual for your procurement expenses then Yes there is a functionality in ax 2012.

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Ludwig Reinhard Microsoft Employee on at

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Hi Vinay,

Why would you create an accrual scheme for a purchase order?

If you purchase items that are stocked then the value of those items are put in your warehouse.

From a financial perspective this is a pure balance sheet transaction that does not impact your P&L.

Can you elaborate what you want to accrue?

Many thanks,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Good morning Vinday,

Do you have any update / feedback for us on this issue?

Many thanks and best regards,

Ludwig

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vinay prudvi 173 on at

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Hello Every One,

One of the client asked i want to process Employee insurance invoice through purchase order, So Insurance expenses not pertains to one month generally we will apply accrual scheme.

Is there any functionality available in our AX. if available required any customization or standard functionality available?

Regards

Vinay

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Ludwig Reinhard Microsoft Employee on at

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Good morning Vinay,

There are two options that I see for this.

Option 1:

Create 12 lines in your PO that represent each a separate month and post the lines separately into the different months

Option 2:

Make a system modification.

Best regards,

Ludwig

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vinay prudvi 173 on at

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Thanks Ludwig

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Ramit Paul 22,797 Most Valuable Professional on at

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Hello Vinay,

I am wondering why Insurance comes under PO accrual?

Based on my experience this type of accrual can be booked either with Cost invoice by invoice register with accrual scheme and invoice approval or invoice journal with Accrual scheme.

Another option is you can book with GL journal entry with accrual scheme.

To customize system for this context will require more effort where as we already have possibilities in system and that is fit to accounting.

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Junaid Idrees on at

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Hi Vinay,

Usually we pay insurance premium for 06 months or Yearly.

When we buy insurance we post:

Debit: Prepaid insurance

Credit: Cash

Then we post adjusting entry at the end of every accounting period:

Debit: Insurance Expense

Credit: Prepaid Insurance

Why don't you use Accrual schemes on invoice journal to keep it simple.

Find below some information on Accrual scheme:

docs.microsoft.com/.../create-accrual-schemes

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