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

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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. 1. Accounting entry for the accrued liability
      

      Purchase expenditure, un-invoiced	DR
      Purchase, accrual	CR

1. Accounting entry for the cost in inventory for the received quantity of the stocked item
   

   Cost of purchased materials received	DR
   Purchase expenditure, un-invoiced	CR

2. Purchase order voucher entry after posting product invoice

1. 1. Accounting entry on the product receipt for accrued liability are reversed.
      

      Purchase, accrual	DR
      Purchase expenditure, un-invoiced	CR

1. 1. Account entry liability for the vendor invoice.
      

      Purchase expenditure for product	DR
      Vendor Balance	CR

1. 1. Accounting entry on the product receipt that records the inventory cost is reversed.
      

      Purchase expenditure, un-invoiced	DR
      Cost of purchased materials received	CR

1. Accounting entry to record the actual inventory cost.
   

   Cost of purchased materials invoiced	DR
   Purchase expenditure for product	CR

Conclusion:

Inventory value as well as Vendor balance will increase.