Journal Entries

Can anybody point me to the journal entries that Navision uses when an item of stock is received, followed by the posting of the invoice? I am using Expected Costing. For example the Goods are received DR Stock CR Inventory Accrual Account I am having trouble following through the logic of the Direct Cost Applied, COGS (Interim)etc etc Alastair

Hi Alastair I will make this simple to start with and assume the invoice you refer to is the purchase invoice and not the sales invoice, as well as keeping the actual cost the same as the expected cost. The accounts populated will come from the GPS (General Posting Setup) using the combination of General Business Posting Group against the supplier and General Product Posting Group against the item. Additionally the IPS (Inventory Posting Setup) is used for the combination of the location the transaction is processed and the inventory posting groupd specified against the item. VAT will be pushed to the accounts through the VAT Posting Setup using the purchase VAT account defined for the combinaiton of VAT Business Posting Group and VAT Product Posting Group. Finally the VPG (Vendor Posting Group) is used for the payables accounts and is set against the vendor. Then the following transactions shuold happen: Receive the goods: DR Inventory Account (Interim) IPS CR Inventory Accrual Account (Interim) GPS Apply the invoice to the receipt. DR Invnetory Account IPS CR Inventory Account (Interim) IPS (Balancing the receipt) CR Payables Account VPG DR Inventory Accrual Account (Interim) GPS (Balancing the receipt) DR Purchase VAT - VAT Posting Setup DR Purchsae Account GPS CR Direct Cost Applied Account GPS What I would suggest is you process every step you wish to track on a serparate day, then on teh general ledger view set teh filter to equal the date of the process, for posting accounts where the net change is <>0 and you will see the individual movement (assuming you pick a range of dates where no other transactions have been processed). I hope this helps.

Dear Steven Thanks for your reply which is most helpful. By my reckoning this leaves you with entries that will remain for ever in the Purchase Account and the Direct Cost Applied Account - unless of course you contra them out. The answer I guess is to allocate these two accounts the same number within the GPS However what purpose did Navision envisage for these accounts? I notice too that you made no mention of the COGS Interim field. What function does this play? Is it pushing my luck to ask what happens if actual cost is different to expected Cost? Regards Alastair

Hi Alastair Yes in essence the entries to the Purchase Account and the Direct Cost Applied Account are left. This split occurred in 3.60, and I think it was driven to capture certain transactions and help with identifying entries in the inventory adjustment account. If you set them the same, then I suppoe identifying the necessary transactions can become more difficult as the inventory adjustment is hit by other transactions. So in answer to your question, I suppose Navision intended this account to make reconciliation and the life of accountants easier (I personally do not generally dabble in the accounts arena, so an accounts specialist may want to jump in here [:D]). There is no mention of the COGS interim account because I did not process a sales order [:)]. The COGS interim account will be hit when you ship a sales order - if you ship and invoice at the same time it is skipped (well it is probably put into the account and reversed in an instant). With regards to the alteration of the cost from the expected to actual the interim accounts will be completely reversed and the actual figures from the purchase invoice processed into the non-interim accounts. Naturally timing is everything in these processes, you may sell it prior to receiving the purchase invoice, etc and also remember to run the adjust cost item entries and post inventory cost to GL routines. I hope this helps.