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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Inventory & Consum...
Microsoft Dynamics GP (Archived)

Inventory & Consumable Receipt

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Posted on by Community Member

Hi if you can share your knowledge and clarity on this issue, it would be greatly appreciated.

The client i am at, has a $500M in inventory in transit. (account 9999-999)

From what i can determine the following occurs
(A) Receipt of inventory
Dr Inventory in Transit 
  Cr Accounts Payable

(B) Matching of Invoices

Dr Inventory
   Cr Inventory in Transit

Step (B) seems to be missing in instances, yet the Accounts Payable is paid

How does this work?
How do i remedy the situation?

Thanks in advance!

Stan

*This post is locked for comments

  • Tim W Profile Picture
    Tim W on at
    RE: Inventory & Consumable Receipt

    For Inventory Items:

    A receipt of good would Debit Inventory and Credit Accrued Purchases (POP Shipment, step 2 of 3way match)

    A match would Debit Accrued Purchases and Credit Accounts Payable (POP Invoice step 3 of 3way match)

    You can do both transactions as a shortcut (POP Shipment/Invoice) so that you would Debit Inventory and Credit Accounts Payable (a two way match) and cut out the accrued purchases middleman.

    What you are describing above I'm not deciphering very well but here's a couple thoughts:

    • Matching Invoices to Receipts has no inventory component.
    • When you say 'Step B' seems to be missing in instances you should probably sort out Shipments from Shipment/Invoices on POP Type as that's probably confusing the issue
    • GP has an Inventory transaction that is an In Transit type such that you could ship inventory from one location to another and account for what is 'In Transit' but it's not purchase order related and has no purchasing dependency.
    • Sounds a bit like your default accounts on transactions were not setup best practice and you have an Inventory In Transit account (9999-999) set as the Accrued Purchases account, that's just a guess.  Program works like it works regardless of what the account is. 
    • If you are using that 9999 account for accrued purchases and perhaps other functions within GP you're in a tough spot.  Reconciling Accrued Purchases (that sounds a bit like what you are describing) is not a simple task if it's not done regularly.  
    • The best advice I ever got from one of Microsoft's trainers was that she would tell new customers to run the Received Not Invoiced report every day for a few months, then once a week once you get the hang of it.  There are lots of ways to lose control in AP Accruals and that's advice I've appreciated.

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