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

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

Dynamics 365 for finance and operations is one of the best ERP solutions that you find in the market. ERP is an acronym for Enterprise Resource Planning. It is a software that helps small and medium-sized companies to organize their work and to scale up high. 

It is quite popular because there it has got some excellent features. For example, when you deploy this ERP software in your company. You get to enjoy things such as these:

  • Feature Management
  • Extensibility Enhancements
  • An Option to Cancel Batch Job that is Running and so forth

On top of it, it is quite affordable when you compare with the other Softwares that you find. Getting a solution to a problem is easy, as there are a lot of resources available online.

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
  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. Accounting entry on the product receipt for accrued liability are reversed.
      Purchase, accrual DR
      Purchase expenditure, un-invoiced CR
    1. Account entry liability for the vendor invoice.
      Purchase expenditure for product DR
      Vendor Balance CR
    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.


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