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Dynamics 365 Community / Forums / Microsoft Dynamics NAV (Archived) / Interim accounts and Nav
Microsoft Dynamics NAV (Archived)

Interim accounts and Nav

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Posted on by Langports_sandeep 115

I am new to the inventory module and the posting setup. Could someone explain the specific accounts that are impacted between sales, purchases and inventory with regards to the following process.

Purchase order created then receipted and then invoiced.

Sales order created then shipped and then invoiced.

If you could use the specific Nav accounts that would help me create a process document.

Cheers

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  • Hannes Holst Profile Picture
    Hannes Holst 5,767 on at

    Hi,

    There are no specific "NAV accounts".

    The finance-part of NAV is solely based on the structure of the company.

    (This is done together with the NAV partner normally.)

    To get a broader understanding of the General Ledger, start by reading about Posting Groups:

    docs.microsoft.com/.../finance-posting-groups

    Or let me know any specific question here.

  • Langports_sandeep Profile Picture
    Langports_sandeep 115 on at

    Thanks Hannes, I am trying to understand the typical journal entries that happen in the background between purchases, direct cost applied, inventory interim, inventory, payables, cost of goods sold and sales. For a nursery that buys plants from the producers using purchase order and then receive them and then invoice them, how will that affect the above accounts?

  • Hannes Holst Profile Picture
    Hannes Holst 5,767 on at

    That depends solely on the Chart of Accounts and the Posting Group Setup of your company.

    To get an understanding of the postings, you can either run "Preview Posting" in the Purchase Order.

    Or alternatively, after the Purchase Order is posted. Go into "Posted Purchase Receipt", select the receipt and push "Navigate" (not the tab NAVIGATE). You will see all related records to this document number. Mark the "G/L Entry"-line and then click "Open Related Entries" to see all transactions in the G/L.

    The same is possible for the Purchase Invoice.

  • Langports_sandeep Profile Picture
    Langports_sandeep 115 on at

    thank you Hannes.

    So am i correct in concluding

    Purchase order received affects the following

    Dr Inventory Interim

    Cr AP Interim (even though i cannot see this in the posting setup)

    When purchase order invoived

    Dr Inventory

    Cr AP

    Dr AP Interim

    Cr Inventory Interim

    Dr Purchase

    Cr Direct Cost Applied

    When Inventory shipped

    Dr AR interim

    Cr Inventory Interim

    When inventory invoiced

    Dr Inventory Interim

    Cr AR interim

    Dr AR

    Cr Sales

    Dr Cost of Goods Sold

    Cr Inventory

    Cheers

    Sandy

  • Verified answer
    RobertasR Profile Picture
    RobertasR 5,004 on at

    Hi Sandy,

    almost as you have described, except:

    - Not AP Interim, but GRNI accounts which in Gen Posting Setup is called 'Inventory Accrual Account (Interim)'

    - Not AR Interim, but COGS Interim accounts which is in Gen Posting Setup

    Plus, of course, tax - depending on which country you operate in.

    Robertas

  • Langports_sandeep Profile Picture
    Langports_sandeep 115 on at

    Awesome Many thanks.

  • Langports_sandeep Profile Picture
    Langports_sandeep 115 on at

    Hello Robertas

    Can i get your guidance on the jobs module? The entire posting setup is confusing me. How do the entries work in the jobs module? I have got an understanding of the job tasks, planning lines and then consuming items, resources and sub contractors and creating job journals. What happens after? How does the transaction flow from WIP to P&L and then finally to revenue and costs? I hope i have explained correctly.

    Cheers

    Sandy

  • Suggested answer
    RobertasR Profile Picture
    RobertasR 5,004 on at

    Oh dear, that is big beast jobs module :) I don't think I can explain it in a post, as there are so many variation and no 'commonly' used framework, as it very much depends on the industry and the purpose of using costs - whether you use items, resources; costs or just revenue, or maybe just time spent, etc.

    The basic principle is such that item consumption would create GL movements (depending on inventory settings) - credit stock, debit adjustment account. Posting GLs would naturally affect GLs, and posting Resources - wouldn't.

    If the job is finished within the fiscal year, companies choose not to bother with WIPs. These are calculated based on the WIP Calculation type and Job Posting Setup, posting recognized sales, costs, etc. Creating invoice for the job/'job task' would also generate PL entries. How you use them depends on the type of projects and what you want to see in your chart of accounts.

    Sorry I can't give you more details on this, but this is a very big topic to cover :)

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