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Purchase expenditure, un-invoiced

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Posted on by Shaun Hawkshaw

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Hi there,

Can you please help with an explanation as to why this line is posted into GL. Purchase expenditure, un-invoiced.

I can see that it takes the (average cost - the value on the PO) X quantity.

It writes it on the Receipt and then on the invoice there is a debit and credit of it going out. So there is still this value sitting in an account.

Thank you,

Shaun

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CapsLock 1,419 on at

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RE: Purchase expenditure, un-invoiced

Hi Tom,

You mention this in your response:

What does it influence that the debit is made with one posting type or the other?

Thanks

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André Arnaud de Cal... 297,389 Super User 2025 Season 2 on at

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RE: Purchase expenditure, un-invoiced

Hi Shaun,

When you sell goods, there is usually a difference between the sales price and the cost. This would be the profit or loss. At that time, at least there are two entries in the profit and loss (I left out balance entries of the voucher):

Revenue -1000

Cost of goods sold 750

As result, in the P&L, you have a result of 250.

Now, when you get goods returned and take it back in inventory, the customer will be credited for 1000, but the return cost of the goods will be set to e.g. 750 and this will be posted as inventory. Now the difference is a reduction on your profit, so for that reason it needs to create a P&L transaction as well to post the change in your P&L. This is the reason for the P&L account posting.

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Shaun Hawkshaw 977 on at

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RE: Purchase expenditure, un-invoiced

Hi there,

Can you please explain why that entry is made? Shouldn't it just go against stock to affect the moving average? Why is it writing the difference to a P&L account?

Thanks,

Shaun

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Shaun Hawkshaw 977 on at

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RE: Purchase expenditure, un-invoiced

Thanks Andre. Appreciate that. Let me take a second to process this and will get back to you.

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André Arnaud de Cal... 297,389 Super User 2025 Season 2 on at

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RE: Purchase expenditure, un-invoiced

Hi Shauwn,

The difference (8388.07) is calculated as difference between the sales (credit) value and the actual moving average cost amount. The posting type 'Purchase expenditure, un-invoiced' should be setup with a balance account. While posting the invoice, this type will be cleared. The posting type 'Purchase expenditure for product' should be setup with a profit and loss account. You now are using the same account which is incorrect and is causing your issue.

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Shaun Hawkshaw 977 on at

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RE: Purchase expenditure, un-invoiced

Hi All,

Sorry, yes this is a credit note.

The average cost has not changed. The amount written there is as shown in the calculation above. (return cost-average cost)*quantity.

Should this amount still be left in an account or should it wash out with the other transactions?

"If you had the same account for Purchase expenditure, un-invoiced and Cost of purchase material received, you would have your accounts cleared. But as written above, this looks like a credit note posting, not invoice (vendor balance is on debit)." - The only difference on credit and invoice is the signage correct?

Thanks,

Shaun

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Ludwig Reinhard Microsoft Employee on at

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RE: Purchase expenditure, un-invoiced

Hi Shaun,

Is this transaction related to a credit note?

Has the moving average price change since the time the product receipt has been posted?

Best regards,

Ludwig

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Thomisso 15 on at

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RE: Purchase expenditure, un-invoiced

Hi Shaun,

I am not sure why the amount is split into two lines (service charge could do that, but it's not the only suspect). On the other hand, stocked product is used for sure as purchase expenditure for product posting type is used for invoice (product receipt reversal) posting (it is not used for non-stocked product). Anyway, I see you have quite strange dr / cr amounts for the product receipt. This is a negative PO (credit note)?

Regular posting of vendor product receipt should be:

Debit: Purchase expenditure, un-invoiced (or Cost of purchase material received)

Credit: Purchase, accrual

When you post an invoice, it should be:

Debit: Purchase, accrual (reversal of product receipt)

Credit: Purchase expenditure, un-invoiced (or Cost of purchase material received)

+

Debit: Purchase expenditure for product (of Cost of purchase material - invoiced)

Debit: VAT

Credit: Vendor Balance

It means that Purchase, accrual should be a balance account (accrued liability) for the vendor un-invoiced and Purchase expenditure, un-invoiced is a COST account.

If you had the same account for Purchase expenditure, un-invoiced and Cost of purchase material received, you would have your accounts cleared. But as written above, this looks like a credit note posting, not invoice (vendor balance is on debit).

BR,

Tomas

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Shaun Hawkshaw 977 on at

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RE: Purchase expenditure, un-invoiced

Hi there,

Thank you for your response but I still don't understand.

My PO has 1 line. No service charges.

My product is moving average.

Can you possible explain to what account that normally would go to so i can try comprehend the accounting.

Thanks,

Shaun

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Thomisso 15 on at

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RE: Purchase expenditure, un-invoiced

Purchase expenditure, un-invoiced is a standard posting type for product receipt posting. When you post the invoice, this amount is reversed using the same posting type and posted to the final cost account. In you case posting type of purchase expenditure for product posting type is used. Check the setup of purchase line items (release products). Maybe there is a service item / different product type, which goes to a different posting type (different from Cost of purchase materials received).

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