AX 2012: Purchase Order Posting Accounts - Need Explanation

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Posted on by Junaid Idrees

Dears

AX 2012 PO Posting to Ledger: Explanation of Accounts on the Purchase Order Posting. Can anyone clarify & explain following accounts impacts please:

Purchase, Inventory receipt (It will be hit when??)
Purchase Expenditure for products (I believe it is a P & L Account)

Currently at the time of PO invoice posting it creates "Purchase Expenditure product" DR & "Payable" CR . My question is where is Inventory Value Account & why it is not DR at the time of booking invoice??

Thank you-

Junaid-

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Ahmad Hussain 10 on at

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Re: AX 2012: Purchase Order Posting Accounts - Need Explanation

Hi,

If you compare AX 2012 PO posting with AX 2009, then Microsoft has made some changes at both the levels - product receipt and invoice update. The accounts you are referring to get hit up on the financial update. Account posting Purchase, inventory receipt is same as Purchase receipt in AX 2009 and earlier releases. This account holds the financial value of the inventory and that's why it gets debited up on invoice update.

The other account Purchase expenditure for product is a new account posting introduced in AX 2012. This account first get debited because it is an expense account. But since we are recording the liability at the same time that's why the adjusting entry (crediting the same account with same value) also passed at the time of invoice posting.

I think there is no way to disable this type of posting in AX 2012. For more information about purchase order posting, please read the following white paper:

http://www.microsoft.com/en-us/download/details.aspx?id=28019
Junaid Idrees on at

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Re: AX 2012: Purchase Order Posting Accounts - Need Explanation

Dear Waqar,

Thanks for your clarification.

I know PO does not have financial impact. with reference to point # 1 clarification which is packing slip update, there is separate account for that "Product receipt" Is it not packing slip account ??I believe it is.

When i post PO Invoice then it does not allow posting if "Purchase Expenditure for Product" account is not setup although there is no Landed cost on Invoice.. This is for sure.

If i setup "Purchase Expenditure for Product" Account then at the time of posting invoice it creates Vendor payable DR & Product Expenditure CR instead of CR Purchase, Inventory receipt ?? Please clarify the same.

Thank you.

Junaid-
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Community Member on at

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Re: AX 2012: Purchase Order Posting Accounts - Need Explanation

Dear Junaid,

Posting purchase order doesn't create any financial entries.

1. Yet, point 1 situation happens when you recive the inventory (means packingslip updating an order).

2. Second point of your conversation seems to me as the misc. costs (in accounting laded cost). These are the costs that are involved in acquiring your item(s) to your warehouse(s).

The po invoice at your end if it is showing only two lines means there is a problem with the posting profiles. because there is nothing with the warehouse, considering what you have mentioned above.

I hope the answer best fit your knowledge...

Warm regard,