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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Custom made items/Non ...
Microsoft Dynamics GP (Archived)

Custom made items/Non inventory for Projects

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Posted on by Community Member

Hi everyone,

I have recently started using MS Dynamics GP and learning to work around it but wasn't able to figure out a proper solution to following problem.

We design and install commercial kitchen appliances. Some of the items that we sell are readily available with our regular suppliers but sometime we have special requests and designs from clients that we need fabricate those items just for specific job/project. Normally every other project will have fabrication requirement. Kindly note the is some lead time in purchasing these items and invoicing the client.

The problem is, these items are specific to certain project and not to be purchased again. so how do i record these items properly in order to get the correct COGS at the time of making invoice.

My current practice is, that don't record the bills from fabrication supplier as item wise rather as a whole in a separate G/L account. see below example

At the time of purchase

1- Debit    Project G/L Account   $ XXX

        Credit   Supplier                           $ XXX

At the time of Invoicing 

1- Debit    Client/Custom            $ XXX

          Credit    Sales                           $ XXX

Then a second entry to charge the cost

2- Debit    Cost of Good Sold      $ XXX

          Credit      Project                      $ XXX

problem: I have to issue invoice item wise and not as full project.

You help will be highly appreciated.

   

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  • Suggested answer
    MG-16101311-0 Profile Picture
    MG-16101311-0 26,225 on at

    Based on what you said, you are creating a standard PO for the fabricated item(s) to your supplier -- all these can be non-inventoried items since they are one-offs. At the time of receipt, you can record this as:

    DB Project Inventory

    CR Accrued Purchases

    The unit/extended cost on the PO can come from the initial quote you got from the supplier.

    When your supplier invoices you, you can record this as

    DB Accrued Purchases

    CR Accounts Payable

    Assuming all you want to do is add the final item to the invoice and record the correct cost, you can certainly recall the non-inventoried items on the PO.  GP will automatically adjust the cost of the non-inventoried item when you post the supplier invoice or use the invoice cost to calculate the COGS IF AND ONLY IF you enter the non-inventoried item as it was entered on the PO.  That invoice will look something like this:

    DB COGS

    CR Project Inventory

    DB AR (Client/Custom)

    CR Sales

    If you have to invoice the customer BEFORE you receive a final bill from the supplier, just know that GP will automatically adjust the Inventory and COGS based on the invoice you posted from the supplier.

    In summary, you can use non-inventoried items and you can use the 3-way matching process in POP to record your transaction. SOP will post the correct COGS so long you use the same non-inventoried items on both the PO and SO.

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