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Purchase voucher effects for stocked item (Dynamics 365 for Operations)

 Mayur Pokharkar   Leave a comment

Introduction:

Two types of accounting for Purchase that take place when an accounting entry is generated for a product receipt or an invoice that contains stocked items.

1. Purchase order voucher entry after posting product receipt

  1. Accounting entry for the accrued liability
    Purchase expenditure, un-invoicedDR
    Purchase, accrualCR
  2. Accounting entry for the cost in inventory for the received quantity of the stocked item
    Cost of purchased materials receivedDR
    Purchase expenditure, un-invoicedCR

2. Purchase order voucher entry after posting product invoice

  1. Accounting entry on the product receipt for accrued liability are reversed.
    Purchase, accrualDR
    Purchase expenditure, un-invoicedCR
  2. Account entry liability for the vendor invoice.
    Purchase expenditure for productDR
    Vendor BalanceCR
  3. Accounting entry on the product receipt that records the inventory cost is reversed.
    Purchase expenditure, un-invoicedDR
    Cost of purchased materials receivedCR
  4. Accounting entry to record the actual inventory cost.
    Cost of purchased materials invoicedDR
    Purchase expenditure for productCR

Conclusion:

Inventory value as well as Vendor balance will increase.


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