Dear Group,
I am a couple days in working as a consultant for a company using Dynamics 365.
One of the accountant’s issues have been negative values on stock.
So I have been looking at some of these units that have negative values.
One example;
- The true number of the item in stock is 31 units but the Invoiced Quantity is down to -95 units.
- So the inventory report is picking up the value of the negative quantity of -95 units in the “Invoiced Quantity” column.
- The accounting method is FIFO.
Yellow marked rows in the table shows that for some “Purchase Orders” the units have been received but not invoiced so the “Invoiced Quantity” is not in line with the Goods Receipt Quantity.
When the Warehouse personnel then take out units for “Assembly Consumption” the "Invoiced Quantity "number of units goes down to a total negative number - and then in turn generate a negative value in the financial report for this item.
Could you please advise the best solution for this? My first thought is to chase the vendor for the invoice but I realise that could take months or years in worst case to get it straightened out.
I assume this is a quite common issue so what is your advise on this matter?
Thank you in advance for any advice.
Kind Regards Kerstin
Kerstin,
This is normal. BC is following the Posting process and flow prescribed. Here are the entries below. NOTE: I am not sure if you have Expected Cost turned on, so the Post Receipt and Post Shipment entry would not occur. The Item Ledger and Value Entry will keep track of the Receipt Quantity, both positive and negative entries. When the Invoice is posted, the Receipt entries will populate the Invoiced Quantity and true up any Unit Cost differences. Have the Invoiced Quantity show 0 will help you create the Accrual entry each month for Received Not Invoiced or Shipped Not Invoiced values.
Hope this helps.
Thanks,
Steve
PURCHASES WITH “EXPECTED COST” OPTION TURNED ON:
Step Transaction Description Entry Amount Setup in Setup Column Details/Comments
1 Post Receipt against PO Dr. Inventory (Interim) Standard Cost Inventory Posting Group Inventory (Interim) Account This entry will be reversed when the vendor
Cr. Accounts Payable Standard Cost Vendor Posting Group Payables Account invoice is posted.
2 Post Invoice against PO Dr. Inventory Actual Cost Inventory Posting Group Inventory Account Per purchased item’s Inventory Posting Group
Note: The Purchases and Direct Cr. Direct Cost Applied Actual Cost General Posting Setup Direct Cost Applied Account Combination of Bus. and Prod. Posting Groups
Cost Applied Accounts should Dr. Purchases Actual Cost General Posting Setup Purch. Account Combination of Bus. and Prod. Posting Groups
either be the same account or Cr. Accounts Payable Actual Cost Vendor Posting Group Payables Account
be in the same G/L grouping on Dr. Accounts Payable Standard Cost Vendor Posting Group Payables Account Reversal of the entry posted when the receipt
the Chart of Accounts. Cr. Inventory (Interim) Standard Cost Inventory Posting Group Inventory (Interim) Account was posted - uses receipt posting date.
3 Automatic Cost Posting “ON” or Dr. or Cr. Inventory Actual - Std. Cost Inventory Posting Group Inventory Account Per purchased item’s Inventory Posting Group
Run Inventory Periodic Activities Dr. or Cr. Purchase Variance Actual - Std. Cost General Posting Setup Purchase Variance Account Combination of Bus. and Prod. Posting Groups
*Note: The point at which Step 3 G/L entries are posted depends on whether Automatic Cost Posting is turned on. If it is “ON”, this transaction will be made at the time the invoice is posted.
If it is turned “OFF”, these entries will be made during Periodic Activities.
SALES WITH “EXPECTED COST” OPTION TURNED ON:
Step Transaction Description Entry Amount Setup in Setup Column Details/Comments
1 Post Shipment against SO Dr. Accounts Receivable Standard Cost Customer Posting Group Receivables Account This entry will be reversed when the customer
Cr. Inventory (Interim) Standard Cost Inventory Posting Group Inventory (Interim) Account invoice is posted.
2 Post Invoice against SO Dr. Accounts Receivable Actual Sales Price Customer Posting Group Receivables Account
Cr. Sales Actual Sales Price General Posting Setup Sales Account Combination of Bus. and Prod. Posting Groups
Dr. Cost of Goods Sold Average Item Cost General Posting Setup COGS Account Combination of Bus. and Prod. Posting Groups
Cr. Inventory Average Item Cost Inventory Posting Group Inventory Account Note: Value Entry is at Average Cost
Dr. Inventory (Interim) Standard Cost Inventory Posting Group Inventory (Interim) Account
Cr. Accounts Receivable Standard Cost Customer Posting Group Receivables Account
3 Run Inventory Periodic Activities
