Inventory Adjustment Account in Gen Business Posting Group

[tongekz]

Hi All,

Good day. What is the use of Inventory Adjustment Account in the Gen Business Posting Group?

The user created a PO posted as receive only then sold the items in that PO to a Sales Order for a certain customer and posted as shipment and invoice.

Now to close the PO, the user created a manual Purchase Invoice and capture PO lines but upon posting it shows a setup is needed (see below image).

This error can be addressed by assigning a GL account in the Inventory Adjustment Account in the Gen Bus Posting Group since it’s now blank or no GL account assigned. The issue is why the system would require this adjustment account if there are no changes on the unit cost from PO to PI. Prior to this, some POs were posted successfully. How come will the system asked this Inventory Adjustment Account?

Also, where and when Inventory Adjustment Account will be required?

Thanks.

[modric]

where and when Inventory Adjustment Account will be required?

Normally, only when Positive/Negative adjustments are posted in Item Journal.

Now to close the PO, the user created a manual Purchase Invoice and capture PO lines

Another one? Why??? Post the “Invoice” part of the original one, which now is in Receieved-Not-Invoiced state now…