System posts adjustment entries to direct cost applied account and inventory account

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Posted on by Nirmala Karunarathna

245

The system posts adjustment entries to the direct cost-applied account and inventory account when posting a purchase credit memo.

BC posts the following entry when we post a purchase invoice (it is correct),

Dr Inventory account
Cr Direct cost applied account

Dr Purchase account
Cr Creditor account

*normally we keep the same G/L account for both the direct cost applied account and the purchase account (as these are getting cleared).

But when I post the credit note for the same purchase invoice, the system posts the following entries

Dr Direct cost applied account
Cr Inventory account

Dr Creditor account
Cr Purchase account

Dr Direct cost applied account (adjustment amount)
Cr inventor account (adjustment amount)

Since the adjustment entry is not posting to both the direct cost applied account and the purchase account, that G/L account is not clearing out.

Does anyone know why this happens?

Categories:

Financial Management

Purchasing

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Nirmala Karunarathna 245 on at

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System posts adjustment entries to direct cost applied account and inventory account

@shauna - I ran the cost adjustment batch job and posted the cost to G/L. No luck.
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Shauna Langley 672 Super User 2024 Season 2 on at

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System posts adjustment entries to direct cost applied account and inventory account

Hi,

Apologies if this is a stupid question but have you ran the Adjust Cost-Item Entry routine and posted any costs to the G/L. I just tried an example there and it seemed to work as expected.

Thanks,

Shauna