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How to enter Purchase Order for inventory already input using an Item Journal Entry?

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Posted on by RH

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We entered some inventory/item manually using an item journal at the time because we were not sure which vendor to use but needed to sell ahead of time.

The quantity has already been sold partially. We entered these items manually with location code, bin code, unit cost, lot#, etc. then sold as such.
Is there a way to link this manual receipt to a vendor now that we decided and to pay that vendor?

Also, is there a way to create a purchase order after the fact and link to this manual inventory entry and pay the purchase order/invoice without affecting the unit cost? (Would it double the entry?)

Thanks!

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Dynamics 365 Business Central

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Gerardo Rentería Ga... 25,157 Most Valuable Professional on at

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Hi

You could try the following and see if it fits your requirement. Post the purchase, use the Application Worksheet to relate the sale to this new purchase, and then apply a negative adjustment to the initial positive adjustment.

Adjust inventory with the item journal - Training | Microsoft Learn

Remove and reapply item entries - Business Central | Microsoft Learn

Best

GR

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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When you used the item journal did you select the Entry Type as purchase or positive adjustment? And did you enter a unit cost?

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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YUN ZHU 95,329 Super User 2025 Season 2 on at

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Hi, Try creating an Invoice directly in Purchase Journals.

Although this cannot be associated with an item, it is possible to create vendor ledger entries and other entries, and to make payments to vendors.

The following post has an example of Sales Journals, I hope it can give you some tips.

https://yzhums.com/54787/

Hope this helps.

Thanks.

ZHU

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Yi Yong 2,555 Super User 2025 Season 2 on at

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Hello RH,

Unless you are very familiar with the costing and application worksheet, it is not recommended to re-link the item entry.

BC can't link purchase orders to inventory entry.

You need to purchase the items using PO again and use the Application Worksheet to link the PO entry to the sales entry.

Then you need to do a negative item journal entry to offset with the original item journal entry you did at that time.

The PO GRN and negative item journal entry must be on the same date as the original item journal entry so the costing calculation will not be affected.

I would go for a simple route and create a purchase invoice instead and you can use the Posting Description field or insert comment lines to mention the item journal entry #.

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Jun Wang 8,200 Super User 2025 Season 2 on at

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it seems you want to redo this processes. If so, you could try the below.

create a sales credit memo to reverse the sales invoice and bring back the sold inventory back.

then negative adjust the inventory by correctively applying to the entry no.

then you could redo the processes using PO and SO.

But the above steps are not mandatory. It is ok to positive adjust in items and sold those thought not recommended if you don't have a good reason for it.

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RH 396 on at

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I ran this in my TRIAL company and used a Purchase Invoice with line entry: GL : Inventory since direct costs applied goes into there for regular POs as well.

I ran a PO side by side to see if the GL entries match with this Item Journal +Purchase Invoice method.

I sold both items and paid vendor, etc.

What do you guys think?

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Yi Yong 2,555 Super User 2025 Season 2 on at

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Hello RH,

I do not have the full picture of the entries, however, you should not post directly into Inventory GL as this will cause a variance between GL and Subledger.

The purchase invoice should be debited into the Inventory Adjustment GL of the item journal entry.

It will be best for you to seek advice from your auditor or finance manager as this is the company's financial statement.

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RH 396 on at

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It would appear that the missing entry is the Inventory and AP lines.
I have shown below if doing a regular PO the GL entries vs just Item Journal:
(All the rest match when doing Sales, it still hits COGS, for example.)
Only thing is that the item journal entry is not linked with any Vendor (which is another issue) and PO has 2 additional GL lines highlighted in yellow.

Only Item Journal:

This is why just for the financial part, I have done a Purchase Invoice which appears to add these lines to balance AP and Inventory:

Does this seem correct?

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Yi Yong 2,555 Super User 2025 Season 2 on at

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Hello RH,

Yes, you are right to post into the Inventory GL in this case.
As I have highlighted earlier, the debit entry of the Purchase Invoice should goes in to the Inventory Adjustment GL of the item journal which turns out to be the Inventory GL.

It seems like the Inventory Adjustment is pointed to Inventory GL, this is not right though.

Adjustments from the Item Journal should hit into Inventory Account and COGS but the setup now is Debiting and Crediting into the same Inventory Account.

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RH 396 on at

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It could be the GLs we are using/the setup:

This was the agreed upon setup that we've been using. Is this what you mean? Thanks.

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