How do I create an accounts payable from a purchase order without to close the PO

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Consider this scenario:

I have a international Purchase Order for inventory goods, lead time 60 days and 75 days of credit terms from bill date on bill of landing. This means that my credit terms begin while the goods are still on the vessel in the point of origin. I will receive the goods 15 days before the invoice is due.

How do I create and accounts payable entry through the purchasing module to reflect the 75 days of credit without invoicing the PO because when the PO status is invoiced, the PO is closed and I can't receive the items.

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Ludwig Reinhard Microsoft Employee on at

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Hi UlisesA,

If you make use of the invoice register journal, you can post a transaction that has no direct influence on your PO. Once the stuff arrived and the invoice is ok for posting you can match it with the goods received and post the PO invoice through the vendor invoice pool.

Best regards,

Ludwig

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Brandon Wiese 17,788 on at

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Why not just change the Due date on the purchase order invoice to whatever you need it to be before you post it?

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Community Member on at

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Thank you Ludwig. It was very helpful. Now, when I close the PO, I am posting to Goods In Transit @ Accts Payable. By default, the items are received in a transit warehouse. When the goods arrive, how do I transfer to my main warehouse, while generating an accounting post Increasing Inventory @ Reducing Goods In transit. The Transfer Diary, does not create an accounting post.

Thanks for your help

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Ludwig Reinhard Microsoft Employee on at

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Hi UlisesA,

What you can do is posting the packing slip for your PO at the time the items are shipped. Posting the packing slip will

DR: Product receipt account

CR: Purchase accrual account

When the items arrive you can make use of an inventory transfer journal to shift your items from the 'in transit warehouse', which can be a vessel to another warehouse. This transfer journal does not create a financial voucher unless you shift the items to a warehouse in a different site.

At the time the invoice is posted the previous packing slip posting is reversed and replaced by another posting to reflect the increase in inventory. That is

DR: Purchase accrual account

CR: Product receipt account

and

DR: Purchase inventory receipt account

CR: Accounts payable

Does that answer your question?

Best regards,

Ludwig

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ZvikaR 184 on at

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The scenario you describe is quite common with overseas shipping.

Did you look into using the "prepayment" functionality on the purchases order (available in AX2012 and later)?

This functionality allows you to pay the purchase order, even in full, while still keeping the PO open for receiving

You can set up the posting of this payment to go to "inventory in transit" balance account..

After receipt you can post a PO invoice where you offset the invoice with the "prepayment", which closes the PO, while moving the "inventory in transit" to "inventory"

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