31 Mar’17

D365 Finance and OperationsPurchase voucher effects for stocked item (Dynamics 365 for Operations)

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-invoiced DR
    Purchase, accrual CR
  2. 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. Accounting entry on the product receipt for accrued liability are reversed.
    Purchase, accrual DR
    Purchase expenditure, un-invoiced CR
  2. Account entry liability for the vendor invoice.
    Purchase expenditure for product DR
    Vendor Balance CR
  3. Accounting entry on the product receipt that records the inventory cost is reversed.
    Purchase expenditure, un-invoiced DR
    Cost of purchased materials received CR
  4. 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.

Written by

Mayur Pokharkar

Functional Consultant

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