Sunday, April 7, 2019

Purchase Order of a Noninventory Item dated before conversion to an Inventory Item when received shows no GL impact

Conversion of an item from non-inventory to inventory type will not have a retroactive effect on previous transactions. Hence, an Item Receipt created from a Purchase Order entered before the conversion (provided the item is tagged as Can Be Fulfilled/Received = T) will show no G/L Impact nor increase the quantity of the item. Subsequently, the Vendor Bill created from the same Purchase Order will show a G/L Impact debiting the item's expense account and a Credit against Accounts Payable.

If the user intends to make the effect retroactive on existing Purchase Orders, the transactions should be edited and the item needs to be toggled by removing the item from the transaction line level, then add the same item back afterwards. 

No comments:

Post a Comment