AX2012 purchasing posting types “Purchase Expenditure for product” and “Purchase expenditure, un-invoiced”
These posting types were introduced in AX2012 as part of the two
voucher strategy for Purchase Distributions. The purchase expenditure for
product is used for invoice posting and the Purchase expenditure, un-invoiced
is used for posting of product receipts. Failure to set up these accounts will result in error when attempting to
post a product receipt and/or invoice.
The purpose of the new posting accounts is to allow Microsoft
Dynamics AX to write an accounting entry for the whole value of the purchase,
without any variances, and thus allow it to handle the variances in a separate
voucher. This new posting account temporarily records the cost in control
account and then moves the cost into ledger account. Effectively, InventTrans
credits the Purchase expenditure account for product and then debits Inventory Receipt
account.
In the scenario below, without tax or any additional costs or
discounts, the following journal entries will be made. Standard cost item for $10USD, Purchased from
the vendor for $12USD.
New accounting entries for Microsoft Dynamics AX2012:
Accounts used for receipt:
Voucher 1:
Debit: $12 Purchase expenditure,un-invoiced (total PO amount)
Credit: $12 Purchase, accrual (total PO amount)
Effect: Creates
liability for goods received not invoiced (balanced by Purchase expenditure
uninvoiced)
Voucher 2:
Debit: $10 Product receipt (standard cost amount)
Debit/Credit: $2 Purchase price variance (for the variance amount)
Credit: $12 Purchase expenditure, un-invoiced (total PO amount)
Effect: Creates increase in value of receipted goods
and records standard cost deviation (balanced by Purchase expenditure
uninvoiced)
NET EFFECT of 2 VOUCHERS:
Debit: Product receipt
Debit/Credit: Purchase Price Variance
Credit: Purchase accrual account
Accounts used for invoice:
Voucher 1:
Debit: $12 Purchase, accrual – for the whole PO amount
Credit: $12 Purchase expenditure, un-invoiced for the whole PO amount
Effect: Balances the 1st Product receipt voucher
Voucher 2:
Debit: $12 Purchase expenditure for product (total PO amount)
Credit: $12 Vendor balance (total PO amount)
Effect: Creates entry to Purchase Expenditure for
Product and created vendor liability
Voucher 3:
Debit: $12 Purchase expenditure, un-invoiced (total PO amount)
Debit: $10 Purchase, inventory receipt (standard cost amount)
Credit: $ 10 Product receipt (standard cost amount)
Credit: $ 12 Purchase expenditure for product (total PO amount)
Effect: Create an increase in inventory value and
standard cost variance and balances the product receipt.
Net effect of 3 vouchers:
Debit: Purchase, accrual
Debit: Purchase, inventory receipt
Credit: Vendor balance account
Credit: Product receipt account
Conclusion:
The value of inventory will increase (for a normal purchase) and
where a standard cost item is being used, if there is a variance this will be
recorded in the PPV account and liability to pay the vendor will be generated in
the vendor balance account. The new Purchase expenditure for product and Purchase expenditure, un-invoiced accounts
simply make the previous process in Microsoft Dynamics AX 2009 possible in
conjunction with the new functionality for subledger accounting.
