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Dynamics 365 Community / Forums / Microsoft Dynamics NAV (Archived) / How to purchase an ite...
Microsoft Dynamics NAV (Archived)

How to purchase an item we do not want to inventory

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Posted on by Heather Triana 60

We are a food processor.  We purchase supplies that do not become part of the end product (i.e. cleanning supplies, uniforms, office supplies, etc.)   For our product that we purchase, process, and sell, we receive into inventory as items.  For these "supplies" we would perfer not to receive into inventory, as we currently don't inventory them.  We have tried entering them as GL Account "Type" on the PO.  The problem with this, it does not allow us to distribute the Freight and Tax received on the invoice (not necessarly none at time of purchase) to the line times via the line allocation.  In addition, when purchasing Capital Equipment we often times have to make partial payments.  The GL Account Type does not allow this easily, an we are unable to utiliize the systems prepayment options.  Could someone please help find a solution.  The thought of creating an item for all of the different types of supplies and capital items we purchase seem prudent.

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  • Tony Hemy Profile Picture
    Tony Hemy on at
    Re: How to purchase an item we do not want to inventory

    Hey Heather,

    This is a difficult one, and it sounds more like a business issue than a system one.

    If approvals are turned on in your system then i would suspect they are there for a reason, adding new lines to an already approved order would correctly trigger the need to re-approve. The approval engine in NAV is a simple one, that makes it a perfect blank(ish) canvas to turn into a very customer specific approval workflow.

    If your freight and taxes are always posting to distinct G/L Accounts you could ask your partner to exclude them when determining if an order needs to be approved or not.

    If the order has been posted before the invoice for freight and taxes have come in then I don't think there is much you can do.

    t

  • Heather Triana Profile Picture
    Heather Triana 60 on at
    Re: How to purchase an item we do not want to inventory

    Here is the scenario we are faces with.

    We create on original PO with a line item for each different type of supply order, which includes the quantity ordered, unit cost, and extended cost.  Assume we use a GL Account type.  

    Now the supplies are at receiving.  We receive the product in.  At that time we post the receipt and invoice.

    Now the invoice is received in, and on the invoice there is a charge for freight.  We are faced with two potential problems.

    1. If the Original PO was completed received in, it does not exist to add a line item for the freight, or

    2. If the PO in to completely received, we add a line item for freight.  Now the PO has to go through the approval process again, in order to receive and invoice the freight.

    What we are trying to achieve is to link the freight to what wash purchases, and/or more importantly, not have to go through the approval process over again every time we have to add freight.  It holds up the AP process.

  • Tony Hemy Profile Picture
    Tony Hemy on at
    Re: How to purchase an item we do not want to inventory

    Hey Heather,

    Its been a while since I did it, but I have modified the Item Charge Assignment (as you described) to include G/L Account as well. That being said you would need to engage your partner to make that change.

    The thing to note though is that when using Item Charge Assignments you are really assigning an indirect cost to your items so that you can work out profit and/or sales prices more accurately.

    Since you cannot apply an indirect cost to a G/L Account entry, what are you fundamentally trying to achieve? Why can you not post the Purchase Invoice for Freight on a different Purchase document?

    t

  • Heather Triana Profile Picture
    Heather Triana 60 on at
    Re: How to purchase an item we do not want to inventory

    I believe the answer is yes.  When we create a Purchase Invoice for the Frieght.  enter a line item "Charge (Item)" and then go on the lightening bolt Actions - Line - Item Charge Assignment - Actions - Functions - Get Receipt Line, we cannot see the original PO that the freight relates to, because the lines were entered as GL Account; therefore, there is no receipt line.  therefore, our only option then is to re-open the Original PO, add a Freight line and receive, but then it has to go throught he approvals again before it can be invoiced/paid.

  • Tony Hemy Profile Picture
    Tony Hemy on at
    Re: How to purchase an item we do not want to inventory

    When you say to the lines via allocation do you mean using Item Charge Assignments?

    t

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