Purchase Receipt and Invoice

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Posted on by BBBCMAN

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Hi All,

When we post receipt in BC it create Debit inventory interim and credit accrual and when posting invoice it creates 7 ledger entries. Is there any easy way to remove the 7 ledger entries and have simple 2 entries. Basically when item received it should be

Debit - Inventory (or expenses)

Credit - Accrual

Invoice

Debit - Accrual

Credit- Payable

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Dynamics 365 Business Central

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Gauravsingh.rajput@... 49 on at

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No Business central will not provide you this accounting

If you prefer not to use interim accounts, you can disable the "Expected Cost" option in the Inventory setup. This way, there will be no accounting entries at the time of Goods Receipt Note (GRN). Instead, when you book the purchase invoice, the accounting will reflect in the Inventory Account and the Direct Cost Applied account and rest is any way standard purchase Debit & vendor credit and taxes if any.

This will solve your problem in case you need more clarity please send your enquiry on.

gaurav.rajput@vserve.co.in

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Gavin 2,508 on at

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Hi,

When you post the Purchase Invoice, Business Central creates entries to the "Purchases" and "Direct Cost Applied" accounts. When dealing with Inventory, there is no way to switch off this default behaviour. (to my knowledge)

This is different to other systems I've used, where it works just as you describe.

If you are interested, I created this blog and YouTube video with my thoughts on why the Purchases and Direct Costs Applied accounts are used.

https://thedynamicsexplorer.com/2023/11/03/dynamics-365-business-central-youtube-video-what-are-the-direct-cost-applied-and-purchases-accounts-and-why-are-they-used/

Hope this helps.

Thanks

Gavin

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Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

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Hello,

You can Turn the Boolean False for "Expected Cost Posting" and "Automatic Cost Posting" in Inventory Setup. So that Direct Cost Adjustment effects will not be passed by system.

Or Else it is the Standard Process and it is not feasible and advisable to reduce the General Ledger Posting if the "Automatic Cost Posting and Expected Cost Posting" Booleans are True.

I hope your query will be resolved.

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Gerardo Rentería Ga... 25,213 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Posting Groups #1 – Item Purchase Posting | Totovic Dynamics 365 Blog

How to extract GL entries with all the dimensions?

Best Regards
Gerardo

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M0HAN SINGH 366 on at

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Hi, i got the same requirement from my client too. to achieve this you can tag the same G/L account on Purchase A/c, Direct Cost and Invnt. Accrual(Entrim). what will happen after doing this setup. We cannot skip it, all G/L will be populate as per setup but we can manage it as final impact is as we desired. Both GRN posting and invoice posting showcase in screenshot.

see below image for your reference and hit a try.

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Khushbu Rajvi. 20,347 Super User 2025 Season 2 on at

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Adding more details: https://learn.microsoft.com/en-us/dynamics365/business-central/design-details-expected-cost-posting

https://community.dynamics.com/blogs/post/?postid=3b598f79-89dd-4eb8-a99f-2e86a3c695d2

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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Hope this helps as well - Purchases and Direct Cost Applied Accounts in Dynamics 365 Business Central - Part 1 - Dynamics 365 Business Central Insights

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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I think there should be no way to do this except manual posting (from General Journal) and customization, and this is standard behavior.

Thanks.

ZHU

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