If you have a PO line that's received but never invoiced (and you close the line because you know you're never going to get an invoice), the system will not back out the entry to the inventory account that was made when the items were received.
Can anyone explain the reasoning behind this? If you had entered an invoice for even just 1 of the items before closing the line, the system will make the necessary entries to adjust the inventory balance in the G/L, as well as adjusting the average cost of the item. However, it won't do that if there are no matching invoices. I would think it should treat it as kind of like a zero quantity invoice and adjust the inventory accordingly. After all, you didn't pay for the items, so shouldn't the cost decrease accordingly?
I suppose this should be a highly unusual condition (not posting an invoice for received goods), but it seems kind of odd that the system just totally ignores the fact that you've just received in a bunch of items at zero cost. Technically, shouldn't your inventory cost be adjusted to reflect that?
*This post is locked for comments