Expensed out items in PO remain on hand

Finance and Operations/AX User Forum
1

Hi All,

Before I post the invoice in PO, I change the Ledger account in SETUP TAB in PO lines, so that would overwrite my receipt account set up in my inventory groups to an EXPENSE ACCOUNT. Supposedly, these expensed out items would not be part of my on hand inventory, but once received/invoiced, these expensed out items still remain on my on hand inventory. I set up the item as ITEM TYPE and not SERVICE.

Hope someone would help.

Thanks.

Heylin

2

Hi Heylin,

For item type ‘Item’, system treat it as a physical stock and hence its stock will rise upon receiving.

Normally, for expense type item, stock is not maintained and during purchase, invoice journal is used rather than PO.

At this point of time, i will suggest you to adjust the stock using movement journal but you need to be very careful about the item costing.

Thanks,

Pranav

3

Hi Heylin,

For item type ‘Item’, physcal stock will be updated upon receiving. Change of ledger on Po has got nothing to do with stock.

At this point of time, you can use movement journal to consume the stock which has been addd to warehouse.

Be careful regarding the item costing.

Thanls,

Pranav

4

thanks pranav