RE: Journal Entries While receiving and invoice the inventory
Hi Paulson,
Yes you can issue the inventory before updating the invoice. The item being received through your product receipt would be part of your physical inventory. The issuance depends upon your document through which you are posting the issuance inventory. There are separate documents for physical issuance i.e. Sale order packing slip, picking list for production, & there are separate documents for financial issuance i.e. Sale order invoice, production order end.
In a scenario, you received an item for 5$ your inventory & the account for posting type Cost of purchased materials received is debit for the same value. You created a packing slip for Sale orders. The inventory in the module & the physical account for sale order posting would also be credit for 5$. The posting type of sale order packing slip is Cost of units, delivered.
So in actually if you see the net result of both accounts of physical inventory it would be nullified and zero. Other factor also come into consideration but this is the most simple way you can understand.
Whenever the Financial inventory is updated, i.e. Purchase order invoice, Sale order invoice, these physical accounts are reversed and actual financial inventory accounts are updated.
Please mark YES against the answer if it helps you.
Warm Regards,
Zain
