Posting in Purchase Order (There is Nothing to post)

jhanvincent14

Good day everyone, by the way im a newbie in navision so please bear with me. I've tried creating a Purchase Order and posting it as Invoice without posting it as Receive first. Error Prompts NOTHING TO POST. hope you can help me

mohana_cse06

why do you want to post invoice before receipt? the standard way is to post receipt and then invoice.
other way is to use prepayment functionality

mohana_cse06

why do you want to post invoice before receipt? the standard way is to post receipt and then invoice.
other way is to use prepayment functionality

jhanvincent14

mohana_cse06 wrote: »

why do you want to post invoice before receipt? the standard way is to post receipt and then invoice.
other way is to use prepayment functionality

oh. so this error is standard and expected i thought im lacking something thanks by the way

mohana_cse06

yes, it is stanadard

RockWithNAV

Hey Jhanvi,

I believe this is something a very common mistake people use to do. If we talk about Sales Order then you cant Invoice it until and Unless you have Shipped it -You may go ahed and simply Ship it or Ship and Invoice but you cant Invoice it out until unless it has been shipped. The same concept goes for Purchase Part and you cant Invoice until and Unless you have received it.

Zafar

Hi All,

I believe there is a situation for both sales and purchases, because they are essentially the same, but from a different point of view.

The goal for me is this:
When we confirm a purchase order, we need to account for the acceptance of the commitment to pay the purchase order amount in order to be able to receive all the goods/ services ordered.

In this situation you do not have a supplier invoice(s) yet, nor are the goods received. Yet you have committed to buy goods or services for a certain amount.

This would need to be accounted for buy Posting a purchase order where neither an invoice, or a receipt has taken place for the ordered items.

GL Entries would be:
Goods Ordered Not Shipped (Debit) (Total amount of the purchase Order)
Purchase Invoices not yet Received (Credit) (Total amount of the purchase Order)

This would give you total control and the most realistic real time view of between what actually happens in the real world, versus the financial events registered in you company finances.

When the items for example get shipped, we can enter:
Goods Shipped and underway (debit) (for the amount shipped)
Goods Ordered Not shipped (Credit) (Shipped Amount)

Also you would receive an invoice for the shipped goods:
Purchase Invoices Not yet Received (Debit) (Shipped Amount)
Creditors (Credit) (Shipped Amount)

This way you always have a holistic view of everything that still needs to ship/invoiced versus is already shipped/invoiced. It also very clearly divides flow of goods and cash.

From a legal point of view, once you commit to a order, you can not just back out of it anytime you want. So it also makes sense to have that commitment accounted for financially.

So I do see a case to be able to post a purchase order/ Sales Order even when nothing has yet been received, shipped, or invoiced.

Is this at all possible in Nav? I am looking at ways to get this done, but have not found a way yet.

Best

Zafar

Zafar

RockWithNAV wrote: »

Hey Jhanvi,

I believe this is something a very common mistake people use to do. If we talk about Sales Order then you cant Invoice it until and Unless you have Shipped it -You may go ahead and simply Ship it or Ship and Invoice but you cant Invoice it out until unless it has been shipped.

The same concept goes for Purchase Part and you cant Invoice until and Unless you have received it.

This is true but not always. For example If your exporting, you invoice from the moment you ship, but the customer has not yet received the items. So essentially that means that the customer cannot post because it has to wait until the items actually arrive in respective country. Depending on which country and part in the world, this can be quite some time.

Slawek_Guzek

Who takes responsibility for goods in transit? You have committed to pay for the order, but what if goods never reaches you? Do you still pay for them?

Zafar

Slawek_Guzek wrote: »

Who takes responsibility for goods in transit? You have committed to pay for the order, but what if goods never reaches you? Do you still pay for them?

This in our own experience does not happen often. What we do, when it does happen, is see it as a prepayment for future orders that have yet to be placed depending on the amount in question. If the amount is large, we either cancel the payment if it is still possible or the supplier has to wire it back. We only pay when we get a shipping notice. This is why it never really happens.

Standard terms apply: like CIF or FOB. When it's FOB, we always take care of Insurance. So for the most part we either get money back from insurance or credit from the supplier.

The thing is, if you are in the united states or west-europe when buying from state to state, the lead time might not be that long which in turn minimizes the amount of open purchase orders you might have at any given point in time. But when lead times are long, it does really matter to also financially account for important phases of goods and money in transit in the supply chain.

It also makes me wonder how US companies handle this when goods are produced in and shipped from China.

Even wire transferring money takes quite some time. So when I authorize a payment it does not immediately get debited from my account, and when it does, it still has not been credited to my supplier account. The time between authorizing a payment and the money actually being credited to the suppliers account can be take up to 8-9 days. The use of interim accounts is very much needed in these situations, but I have found that Nav 2016 does not necessarily provide the functionality in all cases for use of interim accounts.

Best,

Zafar

Slawek_Guzek

Thanks for explanation.

I've tried to make you rethink your requirements. There are other scenarios when goods arrive incomplete (less than ordered), different, broken, etc. The thing is that you don't really know what to post until you receive the goods.

We had similar requirements from purchasing dept, but it turned out that what was really necessary/enough was to register in the system the invoice from the supplier (usually send by email these days so always quicker than the real goods delivery), but not to post it straight away. The registered purchase invoice is then posted on posting receipt of goods.

IMHO this is much simpler solution than to modify NAV to allow to post purchase invoice without receipt, and even from business point of view it should be simpler to handle mistakes in such a scenario, rather than "seeing" the invoice for goods X to be really a prepayment for somethig different in future.

Slawek

jhanvincent14

Thanks a lot guys