Inventory transactions during Product Receipt AX 2012 FP - FIFO

Finance and Operations/AX User Forum
1

Hi, from a PO receipt and PO Invoice perspective, there are two receipt accounts - "Product Receipt" and “Purchase, Inventory Receipt”. We notice that for a given period, Product Receipt is showing a negative balance based on the voucher transactions that I pulled for these two posting types.

From what I understand, “product receipt” is recorded when PO is product Receipt updated. When PO is invoice updated, this account is reversed and a new inventory asset account “Purchase, Inventory Receipt” is recorded. The reversal is per Qty on the vendor invoice that match to PO Product receipt.

Either Product Receipt is either zero or will have a positive balance. But why it shows a negative balance? Will this pose inventory to GL reconciliation issue? We are using a one ledger account “25000” for both of these.

Appreciate your thoughts

2

If the quantity on PO lines are negative, then Purchase receipt and Invoice receipt can have negative values.

I think this is the probable reason for the negative balance. Check the PO transactions.

Pranav…

3

Thanks Pranav. I noticed that while reconciling Inventory to GL, I noticed a difference. Question is that should we need to invoice the POs prior to closing inventory or in a situation where we have some POs in received status and some in invoiced status - what ledger accounts that we need to take into account from GL perspective - i.e in addition to “product receipt” & “purchase, inventory receipt” accounts, should we need to include balance from “Purchase expenditure -uninvoiced”, “purchase accrual” to compare with AX Inventory – say while running Inventory value report?