inventory valuation

Theo_Kersten

We are having a problem with report 1001 " inventory valution" : When an item receipt is posted on 01-11-2005, and the corresponding purchase invoice is posted on 31-10-2005, this report does not list this item purchase per 31-10-2005. But the general ledger posting has been recorded on 31-10-2005 so the inventory valuation at the end of oktober does not match the financial stock accounts.
Does anyone have a solution for this?

kriki

Translated, this would mean that you first pay the merchandise and then you receive it. You have also the problem the other way around.
This has always been an issue for the accountants, but it can't be solved (not that I know). The only solution is to post both things on the same date or keeping in mind that this can happen.

themave

If this is going to happen on a regular basis, one solution that requires a little extra work is to add two lines to the Purchase order, one a positive amount to a G/L holding account for pre-paid inventory or the like and a second as a negative to the same account.

Step 1 - when you invoice before receipt, record the invoice amount on the positive G/L account line.

Step 2 - Receive the item at a later date.

Step 3 - Invoice the Purchase order, including the one line remaining with the negative g/l account.

Net effect:
step 1, prepaid account is debited,
Step 2, inventory in posted to item register, but Po remains open, until invoiced complete.
Step 3, Perpaid account is reversed (credited), inventory g/l account is debited.

Everything matchs, your accountant is happy because you are properly accounting for everything.

Savatage

We usually receive our merch , then get billed 2 weeks later (or so)
We have a report that we run on the first of each month called "Merchandise Received & Not Invoiced". We give that report to the accountant and he makes the proper adjustments.

on the vendor table - field 79 (for me) "Amt. Recd Not Invoiced" is already there for me all I have to do is add it up.

Theo_Kersten

The problem is that posting-steps are done regular: first the receipt, then the invoice. But the posting-date entered by the users is the problem when they post afterwards: the stock-employee does not care about the posting-date so he uses the working-date in november, but the financial-employees post the invoice on the document-date in oktober.