Hello, I noticed an offset account related to ‘fixed receipt price offset’ - There are fixed price profit/loss for PO posting types that I can understand but what does the “Fixed Receipt Offset” mean here?
Also, we see the fixed receipt price profit/loss under Inventory Posting Types. When will these GL accounts be hit?
When a vendor invoice is posted, I believe the price difference between purchase price and cost price ( manage cost tab) will be posted in the fixed receipt price profit/loss as defined in PO.
while the difference between purchase and inventory cost is captured in the fixed receipt accounts as per Inventory posting types.
What are the implications under FIFO when we run the inventory close process?
Many thanks
Offset will be before financial update I believe. Inventory will be for production (potentially transfers).
I have said this a couple of times in response to you, but to find out your answers you could do this relatively quickly by setting one up and following the entries through each processing step.
Thank you adam and full credit goes to you for explaining this in earlier posts.
from what I understood (and will test this out as well)
· Purchase receipts – Posting occurs at the actual cost. i.e. based on price from the PO
· Purchase invoices – The price difference between the actual cost and the fixed receipt price is posted to the general ledger as a variance. The amount is posted to the loss or profit account for the fixed receipt price. Inventory is updated based on the fixed receipt price.
(As you pointed out, we can only have planned cost as a fixed receipt price w.r.t. FIFO)
· When you post Sales order packing slips and sales invoices – Posting occurs at the estimated cost. (ie. planned cost)
When you run an inventory close or a recalculation, if this check box is selected, the value of issue transactions is adjusted according to the price that is specified in the “Fixed Receipt” Price field. If this check box is cleared, the value of issue transactions is not adjusted according to this price.
Hello Adam, i went through a scenario as below:
- In FIFO item model, enabled fixed receipt
-
defined a planned purchased order (planned costing version) for an item say $100
-
when i created a PO, i changed the purchase price of the PO from $100 to $150
-
I have fixed receipt price profit/loss account set up for the item group posting profile for PO posting type - a/c 550000
this account is defined as cog type;
I am able to post the product receipt but when I try to post an invoice, the system gives me an error
The a/c # 550000 is not a valid combination (i checked and there is no acct rule that would prevent it from posting it).
what could be wrong?
on step 2, its actual purchase order