Purchase Receipts and GL Entries

diane@gn

Can anyone give me specifics on when Purchase Receipts produce general ledger entries and when they do not? I believe it is tied to the Inventory Posting Group on the Item Card and deals with direct and indirect costs, but I'd like some confirmation. Thanks in advance for your help!

Alex_Chow

Generally, purchase receipt does not create any G/L entries unless you turn on Expected Cost Posting on the Inventory Setup screen.

The G/L gets posted with your A/P and inventory figures when you post the invoice.

diane@gn

Expected Cost Posting on the Inventory Setup screen is turned on.

Savatage

From Help..

In the Inventory Setup, if you place a check mark in the Expected Cost Posting to G/L field, you can post expected cost in order to get an estimate of the cost of the received items before receiving the actual invoice.

Expected costs are posted to interim accounts in the general ledger. If you want to post expected costs, you must set up interim accounts for the relevant posting groups.

We have them both turned on.
So we still run the Adjust Costs-Item Entries
& Post Inv Cost To G/L Reports located in Periodic Activities

diane@gn

When the purchase order gets posted, there are items on the order that have an Inventory Posting Group (from the Item Card) that identifies it as either a controlled part or an expensed part. If they are controlled, there are no GL entries that get created when the PO is posted. If they are expensed parts, then GL entries do get created. I am assuming this has to do with direct and indirect costs but trying to get confirmation. I'm also trying to determine what the impact the Adjust Cost and Post Cost batch jobs have on this. Thanks!