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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / PPV Account in Item Ma...
Microsoft Dynamics GP (Archived)

PPV Account in Item Master for FIFO Perpetual and Average Perpetual Method

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Posted on by Suet Lee 1,351

Hi,

 

When i do Purchase Receipt with Landed Cost, and later do a Purcahse

Return, i noticed that the account will be charged to the Item Master

PPV account. Example:-

 

Purchase Receiving

Dr. Inv 100

Dr. Inv 200 (Landed Cost)

       Cr Accrued Purchases 100

       Cr Accrued Purchases Landed Cost 200

 

When i perform a Return Transaction/Return w/credit, system will not

automatically reverse the Accrued Purchase Landed Cost portion but

charge to PPV account from the Item master instead. Does anyone know

why? Example, the double entry will appear as follow:-

Dr. Accrued Purchases/AP 100

Dr. PPV 200

      Cr. Inv 300

 

To ensure the double entry is posted correctly, it is the correct

method to set my PPV account as Accrued Purchases for Landed Cost? My

customer environment always revalue inventory. Tolerence Percentage 0%

 

Many Thanks

Regards,

Suet

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I have the same question (0)
  • Richard Whaley Profile Picture
    Richard Whaley 25,195 on at

    For your valuation methods, the PPV accounts are used to record differences between the PO cost and, ultimately, the invoice cost assuming the receipt is done at the PO cost.

    With landed cost, the PO cost is the vendor cost PLUS the landed cost.  So inventory is hit by an inflated number and some difference goes to PPV.  Later when the landed costs are vouchered, if done properly, they will also generate a PPV but in the reverse direction, reducing the net PPV.

  • Suet Lee Profile Picture
    Suet Lee 1,351 on at

    Hi Richard,

    Thanks for getting back to me. First of all I understand what you mean on your first part illustration. But in my case we do not expense of the difference between the PO price and Invoice price. We actually revalue the difference to Inventory. To make costing accurate.

    Same goes to Landed Cost setting. We again do not set the landed cost portion to PPV. It is again charged to Inventory the moment Landed Cost is provided during receiving stage. Therefore in our environment, when landed cost supplier bill (in your terms voucher I believe), the difference is Debited or Credited from Inventory account instead of PPV because we do not expense off. We want the landed cost to be taken up as part of the costing.

    Thanks

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