Purchase Expenditure for product and Purchase expenditure, un-invoiced
posting types were introduced in AX2012 as part of the two voucher strategy for
Purchase Distributions. The purchase expenditure for product is used for
invoice posting and the Purchase expenditure, un-invoiced is used for posting
of product receipts. Failure to set up these accounts will result in error when
attempting to post a product receipt and/or invoice.
The purpose of the new posting accounts is to allow Microsoft Dynamics
AX to write an accounting entry for the whole value of the purchase, without
any variances, and thus allow it to handle the variances in a separate voucher.
This new posting account temporarily records the cost in control account and
then moves the cost into ledger account. Effectively, INVENTTRANS credits the
Purchase expenditure account for product and then debits Inventory Receipt account.
In the scenario below, without tax or any additional costs or discounts,
the following journal entries will be made. Standard cost item for $100USD,
Purchased from the vendor for $115USD.
New accounting entries for Microsoft Dynamics AX2012:
Accounts used for receipt:
Voucher 1:
Debit: $115 Purchase expenditure, un-invoiced
(total PO amount)
Credit: $115 Purchase, accrual
(total PO amount)
Effect: Creates liability for goods received not invoiced (balanced by
Purchase expenditure
un-invoiced)
Voucher 2:
Debit: $100 Product receipt (standard cost amount)
Debit: $15 Purchase price variance (for the
variance amount)
Credit: $115 Purchase expenditure,
un-invoiced (total PO amount)
Effect: Creates increase in value of receipted goods and records standard
cost deviation (balanced by Purchase expenditure un-invoiced)
Accounts used for invoice:
Voucher 1:
Debit: $115 Purchase, accrual – for the whole PO
amount
Credit: $115 Purchase expenditure,
un-invoiced for the whole PO amount
Effect: Balances the 1
st Product receipt voucher
Voucher 2:
Debit: $115 Purchase expenditure for product (total
PO amount)
Credit: $115 Vendor balance (total
PO amount)
Effect: Creates entry to Purchase Expenditure for
Product and created vendor liability
Voucher 3:
Debit: $115 Purchase expenditure, un-invoiced
(total PO amount)
Debit: $100 Purchase, inventory receipt (standard
cost amount)
Credit: $ 100 Product receipt (standard cost
amount)
Credit: $ 115 Purchase expenditure for product
(total PO amount)
Effect: Create an increase in inventory value and
standard cost variance and balances the product receipt.
Conclusion:
The value of inventory will increase (for a normal purchase) and
where a standard cost item is being used, if there is a variance this will be
recorded in the PPV account and liability to pay the vendor will be generated
in
the vendor balance account. The new Purchase expenditure for product and
Purchase expenditure, un-invoiced accounts
simply make the previous process in Microsoft Dynamics AX 2009 possible in
conjunction with the new functionality for sub ledger accounting.
