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Purchase order; Vendor product receipt -Purchase expenditure, un-invoiced

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Greetings NEW D365 Finance & Accounting End User

Trying to warp my head around the methodical process of Purchase Order Receipt.

Our set-up is at the Purchase order product receipt, a Purchase expenditure, un-invoiced transaction a Debit occurs at the ledger associated to the purchase order category. On the ledger details there is no reference to the "product" that was received, the PO that it was received from, nor the vendor (party number / name)

Not until the invoice is received and invoiced that we have visibility to the nature of the PO , the products , vendor and alike creating a Dr Purchase expenditure for expense Vendor invoice & Cr Purchase expenditure, un-invoiced Vendor invoice all in the ledger account.

Thoughts are, should we have the details at the PO Product Receipt at the ledger detail, offsetting a PO Received, Not vouchered account? And the vendor invoice & payment in a PO Received, Not vouchered account clearing the PO receipt with the vendor invoice?

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MATTGUO 22,349 Moderator on at

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Hi,

I couldn't totally understand your requirement, could you give an example of this cases?

You can add the default description on the product receipt voucher: docs.microsoft.com/.../set-up-default-descriptions-for-automatic-posting

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Ludwig Reinhard Microsoft Employee on at

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Hello General Patton,

I would like to disagree with what is stated above and think that the voucher and postings made depend on the setup made.

The next screenprints show a voucher and the transaction origin of that voucher and demonstrate that there is some visibility into inventory and that you can identify the item received.

If I select view inventory transactions from the PO line, I can see that an inventory receipt was physically posted and is visible in the on-hand form and in various inventory reports

I think that your setup might be very much different and would like to ask you to double check how your items, inventory stock policies (item model groups), valuation principles (fifo, lifo, etc.) and inventory postings are setup.

Many thanks and best regards,

Ludwig

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Community Member on at

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Good Morning

Thanks for responding -

My apologies - should have noted that these PO's are in-direct procurement and not inventory.

At the present when a PO is received, it debits the expense account as a 'purchase expenditure, un-invoiced'. At the account ledger view, the PO number, Vendor Number & Name as well as the description of the product goods or services are present.

Once the PO is invoiced, it credits the un-invoiced amount from the expense account, and re-applies it as a debit as a 'purchase expenditure, invoiced' At that time, all of the noted missing details are now present once the invoice is received.

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my question is could the invoice receipt and payment activities occur in an AP Contra clearing account set up specifically for PO receipts?

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Ludwig Reinhard Microsoft Employee on at

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Hi General Patton,

I don't understand your last question.

Can you explain why the invoice receipt and payment activities should use the same clearing account?

I would not use the same one but rather different ones because it allows you reconciling and reporting on things such as

* items/services received but not invoiced

* payments processed but not cleared from bank

*etc.

Best regards,

Ludwig

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