Receive GL Lines

NavStudent

Hello
In navision when you receive gl lines, no transaction occurs gl wise.

One of our customers is saying that there should be gl entries made. They say that it's liability. Basically they order some miscellaneous items from the vendor. The goods are received at the warehouse. On PO they are gl lines. They are not items. So they like to see the gl entries, just like expected cost for items when they receive the goods.


Has anybody run into this request? what do customers normally do?

Savatage

NavStudent wrote:

The goods are received at the warehouse.

do you mean they were physically received or are you talking they were received into the system?

It sould like physically recieved, then I was asking myself then how does the Quantity on hand get updated?

NavStudent

They physicaly receive the goods in warehouse. The user then opens navision and receives the gl lines. At this stage they want the gl transaction made.

DenSter

I don't think the G/L is hit until the order is invoiced. Have you tried that?

NavStudent

That's the problem Denster.
They do want to see that in G/L. Basically they have received something that is not recorded in G/L. It's a liability to them. So they want to hit the G/L when they received the goods.

DenSter

well it doesn't become a financial reality until you invoice it, so that's why it doesn't get posted to GL until then.

NavStudent

Because the company has to wait for the vendor to send the Invoice.
You can't just invoice the PO.

Savatage

our invoices take 2 to 3 weeks to arrive also. We post it then. So are you saying they need to see "some kind of info" right away?

David_Singleton

NavStudent wrote:

Hello
In navision when you receive gl lines, no transaction occurs gl wise.

One of our customers is saying that there should be gl entries made. They say that it's liability. Basically they order some miscellaneous items from the vendor. The goods are received at the warehouse. On PO they are gl lines. They are not items. So they like to see the gl entries, just like expected cost for items when they receive the goods.


Has anybody run into this request? what do customers normally do?

You should be using Items, not G/L lines.

themave

If you run the report Reconcile AP to G/L report # 10101

it will include these items, the purpose of this report is to allow you to make a journal entry to record items received not invoiced yet.

it is not automatic, but should be part of your month end process.

if this were an item, it would not hit the g/l either until the invoice is posted, the only way to hit the g/l is to invoice or to make an accrual journal entry to make the entry, which is what the report is for.

David_Singleton

themave wrote:

...if this were an item, it would not hit the g/l either until the invoice is posted,...

This is what Expected Cost is designed for. These WILL hit the G/L when you receive the goods.

themave

David Singleton wrote:

themave wrote:

...if this were an item, it would not hit the g/l either until the invoice is posted,...

This is what Expected Cost is designed for. These WILL hit the G/L when you receive the goods.

yeah, missed that he was using expected cost. but still they are not items, so your solution of he should be using items, really doesn't work.

my does. it is just not automatic.

David_Singleton

themave wrote:

yeah, missed that he was using expected cost. but still they are not items, so your solution of he should be using items, really doesn't work.

my does. it is just not automatic.

No, I am saying that if he uses Items and Expected costs, then it will work automatically as Navision is designed to work. The question is why on earth is he using G/L lines to receive inventory? Re-read students original post.

NavStudent

because you don't want to maintain them. They just expense them.
who would want to keep track of these items. Somebody has to do the adjustment as they are used.

A better question would be why isn't navision doing this allready.

Savatage

NavStudent wrote:

A better question would be why isn't navision doing this allready.

Why Isn't navision doing this already?

There are right ways & wrong ways of doing things. Just because they don't feel like maintaining these items doesn't mean Navision is doing something wrong.

Isn't making ledger entries a type of maintaining anyway? :-k

DenSter

So why would you receive those at all, why not invoice right away? You're not really receiving anything anyway (not in the sense of the receiving process in the ERP system). I am thinking you're talking about office supplies, things like that. You just enter the invoice straight into Purchase Invoices, with the G/L account for office supplies, and post it from there.

NavStudent

Denster I answered this before. I'm quoting it again so you can read it.

NavStudent wrote:

Because the company has to wait for the vendor to send the Invoice.
You can't just invoice the PO.

themave

DenSter wrote:

So why would you receive those at all, why not invoice right away? You're not really receiving anything anyway (not in the sense of the receiving process in the ERP system). I am thinking you're talking about office supplies, things like that. You just enter the invoice straight into Purchase Invoices, with the G/L account for office supplies, and post it from there.

If we order office supplies ect, it could be any one of our 7 stores, they make a po for it, so when the supplies are delivered the store recieves the items, the invoice may not come for weeks, and it usally goes to the corporate office where it is paid from, the corporate office looks at the po, if it is received, then the invoice is entered.

Alex_Chow

Why not just get the receipt information from the Posted Purchase Receipt? The posted receipts has all of your receiving records, G/L or otherwise.

themave

one way to handle this is to setup several different item numbers with g/l posting groups that hit the g/l accounts you want for the particular type of item, so for all different shop supplies that should hit your g/l account 526 you could create an item gl526 then enter this item on the po,

make it a standard cost item, and make the standard cost 0

Then for the posting groups g/l accounts use your desired g/l account for purchase acct, inventory variance account, purchase variance account ect. make the inventory variance. Since the standard cost is zero, the entry with the variances all net to charge the cost account you want, but do not hit the inventory g/l account.

You can also check the box, inventory value zero

the only down side it the qty never clears inventory, but that is ok, once a year you can make an entry to zero it out.

NavStudent

Ok thanks everybody.

PerJuhl

Hi

Your Customer should get the "Item" granule.

They can just make af few Items that matches the G/L accounts they use today.

Then they will get all the functions they ask and it's a lot more flexibel.

BR Per

Alex_Chow

NavStudent wrote:

Ok thanks everybody.

Please share what you did in the end and the result. This way, everyone that helped you can learn from you as well.

DenSter

themave wrote:

If we order office supplies ect, it could be any one of our 7 stores, they make a po for it, so when the supplies are delivered the store recieves the items, the invoice may not come for weeks, and it usally goes to the corporate office where it is paid from, the corporate office looks at the po, if it is received, then the invoice is entered.

Do you really actually receive office supplies? Do you actually keep track of your inventory of notepads, pens, paperclips, things like that? I thought that was always expensed right away.

themave

DenSter wrote:

themave wrote:

If we order office supplies ect, it could be any one of our 7 stores, they make a po for it, so when the supplies are delivered the store recieves the items, the invoice may not come for weeks, and it usally goes to the corporate office where it is paid from, the corporate office looks at the po, if it is received, then the invoice is entered.

Do you really actually receive office supplies? Do you actually keep track of your inventory of notepads, pens, paperclips, things like that? I thought that was always expensed right away.

read the whole post, I have the posting account set up so that it hits the expense accounts, and once a year or so I zero out the inventory.

We make everything items so the users don't have to remember g/l accounts, they do everything the same, wether purchasing a notepad or a transmission, the select the appopriate item, and put it on a PO.

DenSter

themave wrote:

read the whole post

Yeah I saw that, after I hit submit of course

That's a pretty clever way to do it actually, at least it keeps the receiving process uniform.

David_Singleton

themave wrote:

DenSter wrote:

themave wrote:

If we order office supplies ect, it could be any one of our 7 stores, they make a po for it, so when the supplies are delivered the store recieves the items, the invoice may not come for weeks, and it usally goes to the corporate office where it is paid from, the corporate office looks at the po, if it is received, then the invoice is entered.

Do you really actually receive office supplies? Do you actually keep track of your inventory of notepads, pens, paperclips, things like that? I thought that was always expensed right away.

read the whole post, I have the posting account set up so that it hits the expense accounts, and once a year or so I zero out the inventory.

We make everything items so the users don't have to remember g/l accounts, they do everything the same, wether purchasing a notepad or a transmission, the select the appopriate item, and put it on a PO.

Who remembers "Item Groups" :?: why did they ever remove them, they were great :roll:

Alex_Chow

Item Groups? Were they there in version before 1.2?

Regarding receiving G/Ls, what we usually do is to modify Navision so Resource can be selected on the purchase lines. It does require a bit of programming, but for us, it's a copy & paste job.

Nonetheless, not every customer requires this mod...

David_Singleton

Alex Chow wrote:

Item Groups? Were they there in version before 1.2?

Regarding receiving G/Ls, what we usually do is to modify Navision so Resource can be selected on the purchase lines. It does require a bit of programming, but for us, it's a copy & paste job.

Nonetheless, not every customer requires this mod...

They survived as far as 1.1 in working form. Parts of them the option in Type was till there a while later, but but 1.3 they vanished completely.

Basically imagine an Item, except that there is no tracking of Qty, just cost. So you buy them into stock, or you can just sell them without ever buying them.

The worst thing I remember, was a client that had item Groups, and we upgraded them to 1.3, and Item Groups vanished. They then (understandably) got annoyed when they found they were still paying support and upgrade for them, and could not get that removed from the support price. But Navision were not able to give us a 1.3 license for Item Groups.

Alex_Chow

Version 1.3? I was under the impression that the version after 1.2 was 2.0. :shock:

I think they replaced the Item Groups with Non-stock items. The problem with non-stock items is that they get created into an item..

Having "item groups" feature would indeed be very nice. Or create a new option called Item Group on the purchase line.