Hi everyone,
Is there a way to disable this automatic entry when posting a vendor invoice with inventory? Or maybe move the recognition of the inventory costing when the inventory is issued to a Project [e.g. Project Item Journal]?
Best regards,
Edmond
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Hi Ludwig,
As per testing the suggestion you have made, we are still not able to generate any entry for Product receipt.
Best regards,
Edmond
Hi Ludwig,
You have been a great help to us. Appreciate you so much!
Best regards,
Edmond
Hello Edmond,
For Q1:
You have to complete the inventory posting part in the sales order section. Otherwise, you will receive an error message when you try posting the item requirement packing slip. That is, Packing slip offset and Issue, Consumption need to be filled. The rest not necessarily.
For Q2:
You need to fill accounts in the WIP item and cost item sections.
For Q3:
Setting up a project requires the setup of a project contract, which in turn needs a customer. If this is already setup for your project, you should be fine.
Best regards,
Ludwig
Hi Ludwig,
Please see further inquiries on red font.
To achieve the postings that I showed you above, the 'standard' inventory posting and project posting setup is required. Because the item requirement is a special type of sales order you have to ensure that you have all the accounts setup in the inventory posting matrix in the sales section. (inventory/setup/posting/posting/sales tab). - For the inventory posting account setup on Sales order, currently we have no setup under Packing slip offset, Issue, Consumption, Revenue, Discount, Commission, Commission offset, Deferred revenue on delivery, deferred revenue offset on delivery, deferred sales tax on delivery. Should this be fine to leave this blank just so we can proceed with what is standard?
About the project type:
If you make use of fixed price projects the posting that you get when you post the project packing slip might not directly go to the project cost account but temporarily to a project WIP account. This WIP account will be cleared when you run the estimate process. - Is this the one found in Project management and accounting > Setup > Posting > Ledger posting setup > Cost accounts? If yes, which one should we not leave blank?
About the item requirement:
You don't need to specify a special customer record for this internal sales order. It should automatically be filled with the project funding source if I remember this correctly. - I mean, Customer should be specified for a Project as a pre-requisite for Item requirement, right?
Best regards,
Edmond
Hello Edmond,
To achieve the postings that I showed you above, the 'standard' inventory posting and project posting setup is required. Because the item requirement is a special type of sales order you have to ensure that you have all the accounts setup in the inventory posting matrix in the sales section. (inventory/setup/posting/posting/sales tab).
About the project type:
If you make use of fixed price projects the posting that you get when you post the project packing slip might not directly go to the project cost account but temporarily to a project WIP account. This WIP account will be cleared when you run the estimate process.
About the item requirement:
You don't need to specify a special customer record for this internal sales order. It should automatically be filled with the project funding source if I remember this correctly.
Best regards,
Ludwig
Hi Ludwig,
This is really helpful. I will be trying this on our environment and see the result. I just have some initial question regarding what fields in the Posting profiles for the item group should I need to fill out to achieve the entries I indicated above. I just dont want to miss something out here. Also, since we will be using a 'Fixed Price' Projects then is there any difference in setup compared to that of T&M you mentioned above? I would like to also confirm, that in Item requirement we really need to identify a Customer [or create a Customer] for the Project.
Best regards,
Edmond
Hello Edmond,
Here are some screenshots and steps how this could work in your environment based on what I understood from your previous notes.
Step 1: Ensure that the following project parameter is turned on
Step 2: Ensure that the following AP parameter is turned on
Step 3: Create a new purchase order and ensure that it is linked to a project
Step 4: Enter PO line and confirm the PO as usual
Step 5: Post the PO packing slip. When doing that you will see the following info. Please answer with NO
As a result, the items will be put in your inventory but not consumed for your project
You should get a posting in the following form
DR: Inventory
CR: Preliminary liability for goods received but not invoiced by vendors
Step 6: Post the PO invoice as usual
Also here, the project module won't be affected.
Here you get your ordinary PO posting and the reversal of the packing slip.
In a nutshell, the remaining posting should look as follows
DR: Inventory
DR: Tax (if there is tax on the invoice)
CR: Accounts Payable
Step 7: Open your project and the open the item requirements form that you can find in the planning tab
Post the project packing slip
Result
DR: Project costs
CR: Inventory
Note: The last posting might be tracked through a WIP account if you use a BS posting setup or work with fixed price projects. In my example, I use a T&M project and therefore see the costs with the project packing slip posting.
Hope this example answers your questions.
Best regards,
Ludwig
In addition..
Here are the current financial entries we are getting:
1. Upon posting of product receipt:
No voucher generated.
2. Upon posting of invoice
Dr - Accounts Payable - Clearing XXX
Dr - Input VAT XXX
Cr - Accounts Payable - Trade -XXX
Dr - Superstructure [Project Expense] XXX
Cr - Inventory - Clearing -XXX
Dr - Inventory - Clearing XXX
Cr - Construction Supplies Inventory -XXX
3. Upon Issuance of Project inventory
No voucher generated.
This needs to be corrected.
To continue..
We purchase project inventories and store them in the warehouse then we issue it as needed by the project. Same goes with our financial, we only recognize the Project expense per issuance to the project.
Is this something that Item requirement functionality can address?
Hi,
Can you explain further regarding Item Requirement, particularly the financial aspects? Since we are using the Inventory Warehouse Mangement first time as well to store the project-related items.
We would want to achieve this kind of financial entries:
1. Upon posting of product receipt:
Dr - Construction Supplies Inventory XXX
Cr - Accounts Payable - Clearing -XXX
2. Upon posting of invoice
Dr - Accounts Payable - Clearing XXX
Dr - Input VAT XXX
Cr - Accounts Payable - Trade -XXX
3. Upon Issuance of Project inventory
Dr - Inventory - Clearing XXX
Cr - Construction Supplies Inventory -XXX
Dr - Superstructure [Project Expense] XXX
Cr - Inventory - Clearing -XXX
Let me know how can we achieve this.
Best regards,
Edmond
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