By using the form, you can control the following purchase order posting accounts:

When you create a purchase line ( Ordered status), an inventory transaction is generated with the quantity specified, but without any financial value.

When the item is received ( Received status), transactions based on the items' cost as recorded in the purchase line are generated in the packing slip account, and the same transactions are reflected in the packing slip offset account for the packing slip update.

For the posting to occur, you must select two setup check boxes:

  1. ( > , > > tab).

  2. ( > > > tab).

When you update the invoice for the item ( Purchased status), the two packing slip transactions are reversed. For an item not using standard cost, the item's true cost is debited from the inventory receipt account. Any tax is debited in the tax code account, and item purchases, including tax, are credited to the vendor summary account according to the setup in the supplier's posting profile.

For items with a standard cost, transactions are made based on the standard cost specified in the Pricefield on the Price/Discounttab on the Inventory table. The difference between the real cost and the standard cost is posted in the standard accounts for gains and losses.

If an account for discounts is indicated, the purchase posts before the line discount is deducted, and the line discount will be credited in the separate account for discounts. If you do not specify an account for the line discount, the inventory receipt is posted after the line discount is deducted, and the latter is not recorded directly in a ledger account.

To specify that a purchase is for the internal use of a fixed asset, use the option. For more information, see Fixed assets integration.

See Also