I was creating a Fixed Asset Acquisition through Purchase Order. GL Parameter is to allow acquisition from Accounts Payable.
I first created a Fixed Asset in Fixed Asset Details then I used it in PO by picking it in Fixed Asset Tab of PO lines. The unit cost is Php 22,000.00
I post the packing slip and all the posting in the voucher is correct.
My question is when I post the invoice, the posting in the ledger account assigned for acquisition is now Php 19,750.00. But when you look at the Fixed asset details, the acquisition cost is Php 22,000.00.
There is no other setup for discount, tax or miscellaneous charges that’s why I’m wondering why the amount is changing.
Can anybody help, please?
What are the ledger entries that got created after invoicing PO?
There you can see where the difference amount is going.
This is the entry created upon posting invoice:
Accounts Payable - Clearing 22000.00
Accounts Payable - Trade 22000.00
Fixed Asset Receipt 19750.00
Fixed Asset Receipt 22000.00
Fixed Asset in Transit 22000.00
Office Equipment 19750.00
I looked also at the details of “Fixed Asset Receipt Transactions” but there is no related vouchers that closed the difference.
I am not sure as why FA receipt account is hit twice here.
I will suggest you to test one more case, don’t create FA in the system. Let the FA gets created as per the standard flow, that is as per the no. sequence in the FA group.
Make sure that create asset receipt during product receipt or invoice is checked.
Hello Pranav, I see the Fixed Asset Receipt in the item posting profile (Purchase Order), on a related note, what does this refer to?
Normally, Fixed asset receipt account will be used when a parameter “Allow asset acquisition from purchase ledger” is not selected.
So when we go without the above parameter…
Purchase invoice uses the Fixed asset receipt and once we post the acquistion through FA, then it will offset the FA receipt account with FA acquistion account.