Inventory and Purchase Order Setup

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Posted on by Janelle Bartholomew...

I am employed at a company that is utilizing Dynamics GP. I am reviewing the set-up of the inventory module. I need some advice. What is the best way to set up Purchase Orders for non-inventory items as well as services. How would these be handled so the inventory is not updated with these purchases?

The non-inventory items currently when purchased are expensed but the quantities update the inventory account. How do I handle this? Please note the inventory is not fully implemented and the company is trying to implement the various modules piece-meal.

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twelvestrikes 3,657 on at

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Hi Janelle

You can enter a PO for a non inventory item without setting it up in your inventory, however there are times that you have something that you order frequently but don't inventory. In that case you can setup an item in your inventory and use an Item Type of SERVICE. This type does not accumulate quantities. You can set different GL accounts for it as opposed to your items that you inventory. You can also setup the vendor purchasing information.

This will help speed up data entry and give you consistency when ordering.

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L Vail 65,271 on at

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If quantities are updated then the item was set up with the Item Type of Sales Inventory when it should be a Service, Fixed Fee or Misc Charge. You would likely debit an expense account/COGS when these items are received. In the Purchase Order Entry Window, click the Options menu. There is a menu item named 'Add Item'.

If the 'Add Item' menu is checked, then the system will ask you if you want to add the item to inventory. Unfortunately the default is unchecked. What that means is if somebody mistypes the item number, the item will still go on the PO as a non-inventory item. That might not be what you want. You can set the menu option to default as 'Add Item' using the Professional Services Tools Library (PSTL).

You can always uncheck the 'Add Item' menu in the event you DO want to add a non-inventoried item.

To fix the items improperly set up, you'll need to do a decrease adjustment to take the quantity to zero and then modify the following in table IV00101:

Update IV00101 set ITEMTYPE =4 (for Misc Charges), 5 (for Services) or 6 (for Flat Fee), VCTNMTHD = 0

where ITEMNMBR = 'your target item number);

Kind regards,

Leslie

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Janelle Bartholomew... 42 on at

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Can you post the steps to do this?

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Janelle Bartholomew... 42 on at

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Thank you Leslie, I will have my IT personnel look into your suggestion. If I have non-inventory items that we need multiple distribution options can you say how this would be achieved. Is it that I would need to to split the purchase cost from the purchase order or purchase requisition?

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