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Service item as a stock item - posting issues

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Posted on by Heather Steinhauser

Hello,

We have a service item that is setup as a stock-item (It is a protection plan for furniture) The expected postings are:

Revenue Recognition
1. Dr. Layaway
2. Cr. Revenue
Cogs Recognition
1. DR COGS
2. Cr Accounts Payable other

When the invoice is generated from the vendor for the product sold we will:

DR- Accounts Payable Other

CR- Accounts Payable

The item group has the appropriate main accounts assigned:

But when the transaction posts, the COGS entry isn't made.

Can anyone tell me what I am missing?

Thank you,

Heather

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Junaid Idrees on at

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Hi Heather Steinhauser,

I don't understand your financial voucher Entries, In your screen print you are showing ledger accounsts mapped under Sales order section in Posting Profile that make sense to me but why are you selling product to vendor and why Debiting AP other and Crediting AP?

Can you please clarify, Are you creating Sales order for protection plan, what exactly you want to achieve from business perspective?

Just FYI, If Product Type is Service and Stock item, system doesn't create COGS voucher when you post Sales order invoice. Baiscally The cost of inventory transfer to COGS account when we bill to customer.

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Ludwig Reinhard Microsoft Employee on at

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Hi Heather,

What is the cost that you have setup for the item?

If I get you right then this is actually a service item that does not have costs attached, right?

Did you every purchase the item or increase the inventory qty with a cost amount attached e.g. did you post an inventory counting or movement journal with a cost price other than $0?

If this is all not the case then you won't get a COGS posting.

Also, can you let us know more about your item setup especially the item model group and how this is configured (with/without ledger integration, valuation method used, etc.)

Many thanks,

Ludwig

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Heather Steinhauser 85 on at

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Thanks Junaid and Ludwig, I actually found a way to make the COGS entry happen. In the item group, I changed the Cost of Units, invoiced and Cost of units, delivered to the liability account.

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Junaid Idrees on at

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Hi Heather Steinhauser,

Is your issue resolved? If nothing is needed then please mark the verified answers to help others.

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