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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Inventory GL distribut...
Microsoft Dynamics GP (Archived)

Inventory GL distribution on a non-inventory item

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Posted on by Rita C. 820

Hello,

I'm having some trouble understanding the Inventory line item distribution when it comes to non-inventory items.  We will be mostly selling non-inventory items.  They will be on the SOP Orders, purchased, received, etc....then invoiced out, but GP wants to credit the inventory account.  How can this be when it was a non-inventory item that was purchased? THe purchase never hit the inventory account.  It goes directly to the purchase account on the Receiving.

Any assistance would be appreciated.

Thank you

Rita C.

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  • Richard Wheeler Profile Picture
    Richard Wheeler 75,788 Moderator on at
    RE: Inventory GL distribution on a non-inventory item

    Here is a sample cycle:

    Purchase Order : since it a non-inventory item there is no inventory or cogs account so when you do the invoice match the credit goes to AP and the debit goes to the expense account set on the vendor.

    Sales Order: even though you have specified inventory and cogs accounts, they will not be hit. They do not need to be hit. The credit goes to your sales account and the debit goes to AR.

    There is no cost of the product to be relieved. No quantities were received so there are no quantities to be relieved.

    Go into the TWO(Fabrikam) company and try to cut a PO and a SO and see how it posts.

  • Rita C. Profile Picture
    Rita C. 820 on at
    RE: Inventory GL distribution on a non-inventory item

    Thank you Richard.

    I understand what you are saying, and I was doing that, but then how does the cost of the product get relieved if we put it in thru purchasing and not taking it out thru SOP invoicing?

    Does the INV GL on the SOP line not make a financial entry?  On the posting journals the $$ amount of the costs ends up as a credit under INV

  • Richard Wheeler Profile Picture
    Richard Wheeler 75,788 Moderator on at
    RE: Inventory GL distribution on a non-inventory item

    It is more a question of the coding. Even though the GL account for inventory or cost of goods sold will not be used, the code still requires it to be there. You can enter any accounts you want and they will not be hit.Just setup your default posting accounts appropraitely and you will be fine.

  • Rita C. Profile Picture
    Rita C. 820 on at
    RE: Inventory GL distribution on a non-inventory item

    Hello,

    I'm still in need for an explanation of this.  If anyone can assist, it would be greatly appreciated.

    Thank you

    Rita C

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