Purchase Orders/Receiving Inventory

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I have an item that is purchased from one vendor, sent to another vendor for printing and then received at my warehouse. We do a purchase order for both vendors. Can someone tell me how to handle the receiving and invoicing?. I cannot receive both PO's because it will double the quantity actually received and the cost would be off. Also once I enter the invoice into the system it will change the cost.

I am not sure how to receive the merchandise and enter the invoices in without messing up the actual quantity and cost.

Thank you!!!!

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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You really need to be using a bill of material to do this properly. You're buying two items and there is no way (nor should there be) to buy two items under one item number. You would setup a BOM with two components - Item #1 and Service #1. Do receiving transactions for each item separately, then combine them using an Assembly transaction. If you're not familiar with the Inventory BOM and Assembly Transactions, see my article at MSDynamicsWorld.com here - http://msdynamicsworld.com/story/inventory-management/dynamics-gp-inventory-bom-assembly-transaction-entry

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L Vail 65,271 on at

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As Frank pointed out BOM may be your best bet but I have used Landed Costs to accomplish kind of what you need. Not the best answer, but it accomplishes the increase in inventory cost without doubling the quantity. Also, you get to pay two different vendors.

Kind regards,

Leslie

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Leslie- How do you use landed cost? Frank- We use BOM for production. However for this we have a tube that we buy from one vendor and another company prints it. I don't want to add the printing in as an item number in inventory since it is not a real component. Would it be a problem to just enter the quantity received into inventory as an increase adjustment? Thanks Joanne

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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Joanne,

You'd still have to set it up as an item to do an inventory adjustment.

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Community Member on at

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Frank- My tube is set up as an inventory component item. Is it a problem to just enter the quantity received as an adjustment with the total tube and printing cost as the cost. Will I have a problem when the individual invoices are entered in relation to the item cost? Will the invoice costs override the cost that is shown due to the adjustment? Thanks

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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Joannre,

Are you talking entering an inventory adjustment instead of a receiving transaction?

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Community Member on at

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Frank- yes.

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L Vail 65,271 on at

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Joanne,

We use Landed Costs to capitalize the true cost of an item. Commonly, total landed cost is the sum of all costs associated with making and delivering products to the point where they produce revenue. Items such as brokerage and logistics fees, shipping costs, customs duties, tariffs, taxes, insurance, currency conversion, crating costs, and handling fees are typical landed costs.

On a PO line item hit the little blue arrow next to the item and it will open the Purchasing Item Detail Entry window. In the lower left quadrant of that window you will see a prompt for Landed Cost Group ID. If you zoom back on that prompt it will take you to the Landed Cost Group Maintenance window, from there you can zoom back to all of the places you need in order to set up landed costs. When you get to the Landed Cost Maintenance window you will see a checkbox for Invoice Match on the left side. By checking this box you will require invoices for this landed cost be matched to shipments. The landed cost is actually capitalized into the cost of the item so that your COGS number will not be understated.

The process is pretty well documented in the user manual and in the help screens.

Do you think this will help?

Kind regards,

Leslie

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Leslie- I will have to look at that in the test system. Can landed cost be used on an individual basis? I have to read more about that to know if it is good for us or not. Thank you!!!

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L Vail 65,271 on at

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Hi,

I do not understand what you mean by 'individual basis'. If you mean can you apply it to the item on one PO and not others then the answer is yes.

Leslie

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