What is the purpose for new framework accounting in purchasing

Dear all,

Do anyone know what is the purpose for new framework accounting in Ax 2012 module purchasing?

Because i still confuse for the new framework.

Why in invoice must post purchase expenditure for product.

I still can not find the business logic for this posting.

Does any one can explain to me more clearly.

Thanks in advance

Regards

Rudy

Hi Rudy,

the exact purpose why accounting framework is changed is not explained.

From my understanding, the purchasing framework also consider expense account, earlier it was balance sheet accounts only.

With the new framework, you can track some of the posting which can lead to difference:

  1. If packing slip and invoice is posted with different amount then that is reflected then that can be tracked.

  2. If PO return is posted without using inventory marking, then generally inventory is hit by wtd avg cost while vendor is hit by line amount. This differences can also be tracked using new framework.

There can be some other reason also. Above two points are what i have noticed.

Pranav…

Hi Pranav,

Thanks for your reply.

I will check later.

Because my end user needs to know what is the benefit for the new framework accounting ? And i really confuse what is benefit for the new framework accounting.

Another question is what kind of account for purchase accrual ? Is it liability account ?

And what kind of account for purchase expenditure for product ? Is it P & L account ?

Thanks in advance

Regards

Rudy

Purchase accrual is essentially a balance sheet account and Purchase expenditure for product a PL account.

Pranav…

Ok, Thank for your kindly support.

I have another question.

When i post Invoice, i change the unit price in invoice.

So the unit price is different with the item cost when posting product receipt.

I check the ledger, there is no purchase price variance account, that is created in the ledger voucher invoice.

Is it really the standar Ax 2012 R2 ?

Thanks in advance

Regards

Rudy

Ok, Thank for your kindly support.

I have another question.

When i post Invoice, i change the unit price in invoice.

So the unit price is different with the item cost when posting product receipt.

I check the ledger, there is no purchase price variance account, that is created in the ledger voucher invoice.

Is it really the standar Ax 2012 R2 ?

If it is the standar AX 2012 R2 , when the purchase variance created ?

Thanks in advance

Regards

Rudy

Let’s say you posted packing slip with $100 and invoice with $120.

In this case, Purchase expenditure un-invoiced will be hit by $100 at packing slip and $120 at invoice. The net balance in this ledger will not be 0.

There is no separate ledger for variance (I am saying this keeping standard cost item out of picture) but you can see that after invoicing there will be some balance left in the ledger.

Pranav…

Hi Pranav,

Thanks for your kindly support.

I really appreciate it.

So my conclusion is , if there is different unit price between postng product receipt and posting invoice. The ledger will not post account purchase variance( let’s say the item model using Fifo and Weighted average). Is it ?

And the purchase price variance only posted if we use standard cost in item model. Is it ?

The third question is

Can I include the sales tax when posting product receipt ?

In Ax 2012 standard, when posting product receipt, the accrual liability does not include sales tax, exspecially for purchase expenditured , uninvoiced.

Thanks in advance

I’m sorry for alot of some stupid question.

Regards

Rudy

Yes

Yes

No