Hi, Our accountant is asking why “purchase expenditure uninvoiced” account is needed - what is the new accounting framework in AX 2012? Here is what the explanation given by MS. However, my accounting team failed to see the logic behind why AX 2012 require ‘these account’ - If it is an offset account, what does it offset for? How does it affect Balance sheet or P& L? What is the account type of “purchase expenditure un-invoiced”? They are coming from old accounting system that it would help if someone explain? If they are neither asset nor liability account, what are they?
**** here is what I tried to explain from the MS documentation ********
Credit Purchase, accrual XX
Another accounting process accounts for the cost in inventory for the received quantity of the stocked item by crediting the expenditure ledger account and capitalizing the cost in an inventory asset ledger account.
Debit Product receipt XX
Credit Purchase expenditure, un-invoiced XX
When a vendor invoice is recorded for a stocked item and accounting entries are created, two accounting processes take place:
First, the accounting entries on the product receipt for accrued liability are reversed. The amount that is reversed is based on the quantity of stocked item on the vendor invoice that is matched to the product receipt. Then, the accounting entry is created to record the liability for the vendor invoice. Both entries are created by the new accounting framework that was added in Microsoft Dynamics AX 2012.
Credit Purchase expenditure, un-invoiced XX
Debit Purchase, accrual XX
Debit Purchase expenditure for product XX
Credit Vendor balance (Accounts payable) XX
Second, the accounting entry on the product receipt that records the inventory cost is reversed. The amount that is reversed is based on the quantity of the stocked item on the vendor invoice that is matched to the product receipt. Additional account entries are created to record the inventory cost under a new inventory ledger account classification.
Credit Product receipt XX
Debit Purchase expenditure, un-invoiced XX
Debit Purchase, product receipt XX
Credit Purchase expenditure for product XX
Conceptually, if you net the vouchers together, the effect remains the same as the accounting entry that is generated in Microsoft Dynamics AX 2009. Because two separate accounting
processes are used that do not interact with each other, it is not possible to summarize the vouchers together in Microsoft Dynamics AX 2012.
