Wrong Accounts being used when posting Invoice Payments

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We are having an issue when an invoice doesn't match the PO. When we change the pricing so that we can pay the invoice, the transaction creates an entry to Inventory for the new amount (total) instead of the difference. I can't seem to find what controls which account is picked so that is creates the correct GL transaction.

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L Vail 65,271 on at

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Have you previously done a receipt that used the amount on the PO to record the increase in inventory?

For example.

1. Let's say your PO has 3 items at $200 each

2. You receive the 3 items. The posting should look like this:

DR Inventory $600

CR Accrued Purchases $600

3. The Vendor's invoice comes in but the item price is $250. You would Invoice Match the item and change the unit price on the Purchasing Invoice Entry window to $250. The entry should look like this:

DR Inventory $150.

DR Accrued Purchases $600.

CR Accounts Payable $750.

Using this same example, what behavior are you seeing?

Kind regards,

Leslie

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DR Inventory $750.

CR Materials $600

DR Accrued Purchases $600.

CR Accounts Payable $750.

It doesn't do the difference between the new price and old, it uses the new price and adds to inventory again.

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Heather Roggeveen 9,150 on at

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That almost seems to me like you have a customisation done on the window. I have never seen that behaviour in standard Dynamics GP. Do you use the Manufacturing module? Behaviour may be different in that module.

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Community Member on at

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No. We are only using the basic package. We do have a WMS system that sends receipts, adjustments and shipment information back to GP, but nothing with the invoice.

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L Vail 65,271 on at

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Hi,

When the item was received the entry was

DR Inventory 600

CR Accrued Purchases 600

And then when the invoice was received, was the entry

DR Inventory 750

DR Accrued Purchases 600

CR Accounts Payable 750

CR Materials (COGS?) 600

I don't understand the Materials part of the entry. Is this an Inventory Item?

Leslie

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Community Member on at

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It is an inventory item which is why it is so frustrating that we can figure out what is causing it.

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Tim W 2,925 on at

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Is this a Shipment/Invoice and you correcting the price in the Receivings window? If so, that sounds correct to me.

A POP invoice from the Match window would not create an inventory transaction. If you are having this issue from the match window you might want to check the accounts on the item and PO line to be sure the PPV account is not set to your inventory account but that does not explain a total amount to inventory.

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Heather Roggeveen 9,150 on at

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Tim - Shipment / Invoice never goes via Accrued Purchases I would have thought?

However, I think your reference to PPV (purchase price variance) might be on to something.

Have the items that were received for $600 been sold already? If items are sold and you do a cost adjustment, then there is an adjustment for the difference made to the Cost of Sales account. I would still not expect to see the distributions the way you describe, but it could somehow be linked.

In this scenario, I would still expect:

Debit Inventory $150 (the difference)

DR Accrued Purchases $600 (the amount that went there in the first place)

CR Accounts Payable

Then a second adjustments for the difference in sales - usually a separate jnl:

Cr Inventory $150

DR Cost of Sales $150

This adjusts for the fact that the items were sold.

Denise - I wonder if some screen shots of the Invoice Match screen and Distributions would help us?

Cheers

Heather

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L Vail 65,271 on at

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If you do a shipment invoice, there wouldn't have been a previous entry to inventory because there wouldn't have been a receipt transaction. Nor would there have been, as Heather said, an entry to the Accrued Purchases account. I'm probably being dense here, but what are the steps you go through - and does the inventory for this item go negative?

Leslie

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