What is the difference between product receipt and purchase Inventory Receipt in Purchase form of Item Group

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Posted on by subashini

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Hi Friends,

Can anyone clarify me the difference between Product receipt and purchase inventory Receipt of the Inventory form which is in Item group.

Thanks in advance

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Subha G 35 on at

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Product Receipt posting setup is for accruing the received stock when Purchase Order > product receipt is posted.

Account for Purchase inventory receipt (if setup) is used to record the inventory cost under a new inventory ledger account at time of invoice posting.

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subashini 858 on at

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Not clear. Can anyone please clarify me.

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Ludwig Reinhard Microsoft Employee on at

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Hi subashini bonkuri,

Can you clarify your question a bit and possibly post some screenprints of the forms to which you refer?

Many thanks and best regards,

Ludwig

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subashini 858 on at

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Hi,

Inventory mangement-setup-item group-purchase order form-there you can find these two.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

I attached you a screenprint where I show you the Labels from AX2012 on the right and from D365FO on the left because in D365FO the description seems better / self-explanatory.

Does that answer your question if you compare the equivalent account types with those available in D365FO?

Best regards,

Ludwig

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subashini 858 on at

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Hi,

You have taken these Screen shots from D365 but where is this in Ax2012, and why did they give two names what is the use of this.and also i observed one more thing you have given purchase expenditure un invoiced and purchase expenditure for product same GL account,If that is the case why they given two different names.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

I added the names of the systems from where those screenprints are

The purchase expenditure un-invoiced account is technically required for the subledger framework. This account should always balance to $0.

The same holds - in general - for the purchase expenditure for product account, i.e. the balance on this account should be $0 unless you want to expense a stocked product for company specific reasons. This would however, require a specific setup of your item model group.

Hope this clarifies this issue.

Best regards,

Ludwig

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Prashant Singh 8,802 on at

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Dear Subashini,

1st of all this how Microsoft product has been designed the product in order to match the accounting standard.

In receiving they don't calculate the actual cost into the inventory account. So they use product receipt setup to have the received value of the goods. Because they have received the material but till that you don't have actual cost of the item that will come in the invoice.

In invoicing, here you will get the actual cost of the material so you will book that in you purchase inventory receipt account.

For more details

https://www.microsoft.com/en-in/download/confirmation.aspx?id=28019

Regards,

Prashant Kumar

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guk1964 10,888 on at

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I suggest download and read the white paper

Microsoft Dynamics® AX 2012 - " Accounting for stocked items on product receipts and vendor invoices"

This is the abstract:

This white paper describes the concepts of the two types of accounting that take place when an accounting entry is generated for a product receipt or an invoice that contains stocked items. Part of the process updates accrued liability or liability accounts, and uses the new accounting framework that was added in Microsoft Dynamics AX 2012. The other part of the process updates the inventory cost, and uses the same posting process that was available in Microsoft Dynamics AX 2009. Both processes update the general ledger, but they do not interact
with each other. This means that now when a stocked item is received or invoiced in Microsoft Dynamics AX 2012, two vouchers are created. Examples illustrate the way that the inventory posting works.

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subashini 858 on at

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Hi ,

Can you please explain me above screen shot also why all these entries are coming to the picture. I am not able to understand.

Thanks in advance

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