There are general ledger transactions posted in correspondence to inventory financial transactions, these transactions may relate to the financial updates of purchase orders and/or sales orders. Inventory transactions posted to general ledger are configured by inventory model groups. In this post I will focus particularly on the post financial inventory option in relation with purchase orders.
For Purchase order invoice update: If this checkbox is checked, the amount of the item is posted to the inventory receipt account, and the posted net amount to purchase expenditure for the product is zero.
A Purchase order is created and invoiced. The generated invoice entry for inventory transaction will be posted to purchase, inventory receipt. In the other hand the net posted transaction to purchase expenditure for product is zero, in order to illustrate the transaction details, go to the subledger journal.
The following screen shots illustrate the configuration of the inventory model group (Inventory management| Setup| Inventory| Inventory model group) and the voucher transactions of purchase order invoice (Accounts payable| Common| Purchase orders| All purchase order – select invoiced purchase order, go to the invoice ribbon, select invoice and then voucher)
(Click on the image to enlarge)
In the previous section I covered the inventory transactions of the purchase order invoice where the post financial inventory check box was marked in the item model group. In this section I will focus on the same configuration but with the post financial inventory check box un-marked.
For Purchase order invoice update: If this checkbox is unmarked the amount of the item transaction is posted to the purchase expenditure for product account.
A Purchase order is created and invoiced. The generated invoice entry for inventory transaction will be posted to purchase expenditure for product. In the other hand there are no transactions posted to purchase, inventory receipt. In order to illustrate the transaction details, go to the subledger journal.
The following screen shots illustrate the configuration of the inventory model group (Inventory management| Setup| Inventory| Inventory model group) and the voucher transactions of purchase order invoice (Accounts payable| Common| Purchase orders| All purchase order – select invoiced purchase order, go to the invoice ribbon, select invoice and then voucher)
(Click on the image to enlarge)