GL Account Defaults

[james-2]

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The author has deleted this message.

[Jacopo Cappellato-5]

Good morning James,

On Thu, Mar 22, 2018 at 4:10 PM, <[hidden email]> wrote:

> Good morning.  Something strange just happened in Financials that maybe
> this group can point me into the right direction
>
> I received a Purchase Order and the system Creating an balancing
> Accounting Transaction for "Uninvoiced Item Receipt & Inventory".  I
> then marked the vendor invoice as Ready and the system created another
> balancing transaction with Accounts Payable and Purchase Price Variance.
>

From what I understand, when the vendor invoice has been posted the
Accounts Payable has been Credited (correct) and the Purchase Price
Variance has been Debited (unexpected); could you please share more details
about the invoice transaction (you can find them at the bottom of the
invoice detail screen)?

The account *debited* for each item in a purchase invoice is determined by
the mapping between the invoice item type and the account id as set in this
screen:

https://demo-trunk.ofbiz.apache.org/accounting/control/editInvoiceItemType

In this screen you should see mappings from various purchase invoice item
types (like PINV_FPROD_ITEM) to the "Uninvoiced Item Receipt" account.
Please check what you have there.
As a side note, the "Purchase Price Variance" (that is usually an Expense
account) is used by the system when there is a difference between the
purchase price (in the order) of an item and its value in the purchase
invoice.

Kind regards,

Jacopo



>  I was expected it to create a transaction moving the dollar amount from
> Uninvoiced Item Receipt to accounts payable. My question is where
> specifically in the system is the Vendor Invoice transaction configured
> for this process?
>
> Thanks,
>
> James
>

[james-2]

CONTENTS DELETED

The author has deleted this message.

[Jacopo Cappellato-5]

Hi James,

usually, before a purchase invoice is posted to the GL, its shipment is
received into inventory and this generates an accounting transaction that
usually:
Debits an inventory account (its balance goes up)
Credits a (temporary) liability account (its balance goes up); this account
is usually named "uninvoiced item receipts" and represents the value of
items for which we are still expecting a formal invoice (we can think of it
as an still unconfirmed "accounts payable" account)

When the purchase invoice is posted we have:
Credits the liability "accounts payable" account (its balance goes up)
Debits the liability "uninvoiced item receipts" account (its balance goes
down)

The end result is that the "uninvoiced item receipts" holds the amount of
the liability since the items are received into the warehouse and until the
time the purchase invoice is posted, when the amount of the liability is
transferred to the "accounts payable" account.

Purchase variance comes into play in order to adjust the difference (if
any) between the purchase order item price and the purchase invoice item
price.

You can control which GL account is credited for Shipment Receipts from the
screen:

https://demo-trunk.ofbiz.apache.org/accounting/control/GlAccountAssignment?organizationPartyId=Company

in it you can edit (remove and add) the row labeled "Uninvoiced Shipment
Receipts" and this will affect the credit part of the transaction generated
by the shipment receipt event.

I hope it helps,

Jacopo

On Thu, Mar 22, 2018 at 5:21 PM, <[hidden email]> wrote:

> Jacopo - Thanks for your email and that makes perfect sense.  Since
> these 2 transactions are related in the Purchase Order to AP.
>
> What controls the GL accounts for Shipment Receipts?  How are the
> Shipment Receipt process and Vendor/Purchase Invoice linked?  How does
> the Purchase Variance come into play?
>
> -------- Original Message --------
> Subject: Re: GL Account Defaults
> From: Jacopo Cappellato <[hidden email]>
> Date: Thu, March 22, 2018 8:47 am
> To: "[hidden email] ML" <[hidden email]>
>
> Good morning James,
>
> On Thu, Mar 22, 2018 at 4:10 PM, <[hidden email]> wrote:
>
> > Good morning. Something strange just happened in Financials that maybe
> > this group can point me into the right direction
> >
> > I received a Purchase Order and the system Creating an balancing
> > Accounting Transaction for "Uninvoiced Item Receipt & Inventory". I
> > then marked the vendor invoice as Ready and the system created another
> > balancing transaction with Accounts Payable and Purchase Price Variance.
> >
>
> From what I understand, when the vendor invoice has been posted the
> Accounts Payable has been Credited (correct) and the Purchase Price
> Variance has been Debited (unexpected); could you please share more
> details
> about the invoice transaction (you can find them at the bottom of the
> invoice detail screen)?
>
> The account *debited* for each item in a purchase invoice is determined
> by
> the mapping between the invoice item type and the account id as set in
> this
> screen:
>
> https://demo-trunk.ofbiz.apache.org/accounting/control/editInvoiceItemType
>
> In this screen you should see mappings from various purchase invoice
> item
> types (like PINV_FPROD_ITEM) to the "Uninvoiced Item Receipt" account.
> Please check what you have there.
> As a side note, the "Purchase Price Variance" (that is usually an
> Expense
> account) is used by the system when there is a difference between the
> purchase price (in the order) of an item and its value in the purchase
> invoice.
>
> Kind regards,
>
> Jacopo
>
>
>
> > I was expected it to create a transaction moving the dollar amount from
> > Uninvoiced Item Receipt to accounts payable. My question is where
> > specifically in the system is the Vendor Invoice transaction configured
> > for this process?
> >
> > Thanks,
> >
> > James
> >
>

[taher]

@documentation team, this is another gold nugget to go into our manual :)

On Fri, Mar 23, 2018, 1:15 PM Jacopo Cappellato <
[hidden email]> wrote:

> Hi James,
>
> usually, before a purchase invoice is posted to the GL, its shipment is
> received into inventory and this generates an accounting transaction that
> usually:
> Debits an inventory account (its balance goes up)
> Credits a (temporary) liability account (its balance goes up); this account
> is usually named "uninvoiced item receipts" and represents the value of
> items for which we are still expecting a formal invoice (we can think of it
> as an still unconfirmed "accounts payable" account)
>
> When the purchase invoice is posted we have:
> Credits the liability "accounts payable" account (its balance goes up)
> Debits the liability "uninvoiced item receipts" account (its balance goes
> down)
>
> The end result is that the "uninvoiced item receipts" holds the amount of
> the liability since the items are received into the warehouse and until the
> time the purchase invoice is posted, when the amount of the liability is
> transferred to the "accounts payable" account.
>
> Purchase variance comes into play in order to adjust the difference (if
> any) between the purchase order item price and the purchase invoice item
> price.
>
> You can control which GL account is credited for Shipment Receipts from the
> screen:
>
>
> https://demo-trunk.ofbiz.apache.org/accounting/control/GlAccountAssignment?organizationPartyId=Company
>
> in it you can edit (remove and add) the row labeled "Uninvoiced Shipment
> Receipts" and this will affect the credit part of the transaction generated
> by the shipment receipt event.
>
> I hope it helps,
>
> Jacopo
>
> On Thu, Mar 22, 2018 at 5:21 PM, <[hidden email]> wrote:
>
> > Jacopo - Thanks for your email and that makes perfect sense.  Since
> > these 2 transactions are related in the Purchase Order to AP.
> >
> > What controls the GL accounts for Shipment Receipts?  How are the
> > Shipment Receipt process and Vendor/Purchase Invoice linked?  How does
> > the Purchase Variance come into play?
> >
> > -------- Original Message --------
> > Subject: Re: GL Account Defaults
> > From: Jacopo Cappellato <[hidden email]>
> > Date: Thu, March 22, 2018 8:47 am
> > To: "[hidden email] ML" <[hidden email]>
> >
> > Good morning James,
> >
> > On Thu, Mar 22, 2018 at 4:10 PM, <[hidden email]> wrote:
> >
> > > Good morning. Something strange just happened in Financials that maybe
> > > this group can point me into the right direction
> > >
> > > I received a Purchase Order and the system Creating an balancing
> > > Accounting Transaction for "Uninvoiced Item Receipt & Inventory". I
> > > then marked the vendor invoice as Ready and the system created another
> > > balancing transaction with Accounts Payable and Purchase Price
> Variance.
> > >
> >
> > From what I understand, when the vendor invoice has been posted the
> > Accounts Payable has been Credited (correct) and the Purchase Price
> > Variance has been Debited (unexpected); could you please share more
> > details
> > about the invoice transaction (you can find them at the bottom of the
> > invoice detail screen)?
> >
> > The account *debited* for each item in a purchase invoice is determined
> > by
> > the mapping between the invoice item type and the account id as set in
> > this
> > screen:
> >
> >
> https://demo-trunk.ofbiz.apache.org/accounting/control/editInvoiceItemType
> >
> > In this screen you should see mappings from various purchase invoice
> > item
> > types (like PINV_FPROD_ITEM) to the "Uninvoiced Item Receipt" account.
> > Please check what you have there.
> > As a side note, the "Purchase Price Variance" (that is usually an
> > Expense
> > account) is used by the system when there is a difference between the
> > purchase price (in the order) of an item and its value in the purchase
> > invoice.
> >
> > Kind regards,
> >
> > Jacopo
> >
> >
> >
> > > I was expected it to create a transaction moving the dollar amount from
> > > Uninvoiced Item Receipt to accounts payable. My question is where
> > > specifically in the system is the Vendor Invoice transaction configured
> > > for this process?
> > >
> > > Thanks,
> > >
> > > James
> > >
> >
>

[Rajesh Mallah]

felt the same :-)


On Fri, Mar 23, 2018 at 4:07 PM, Taher Alkhateeb <[hidden email]
> wrote:

> @documentation team, this is another gold nugget to go into our manual :)
>
> On Fri, Mar 23, 2018, 1:15 PM Jacopo Cappellato <
> [hidden email]> wrote:
>
> > Hi James,
> >
> > usually, before a purchase invoice is posted to the GL, its shipment is
> > received into inventory and this generates an accounting transaction that
> > usually:
> > Debits an inventory account (its balance goes up)
> > Credits a (temporary) liability account (its balance goes up); this
> account
> > is usually named "uninvoiced item receipts" and represents the value of
> > items for which we are still expecting a formal invoice (we can think of
> it
> > as an still unconfirmed "accounts payable" account)
> >
> > When the purchase invoice is posted we have:
> > Credits the liability "accounts payable" account (its balance goes up)
> > Debits the liability "uninvoiced item receipts" account (its balance goes
> > down)
> >
> > The end result is that the "uninvoiced item receipts" holds the amount of
> > the liability since the items are received into the warehouse and until
> the
> > time the purchase invoice is posted, when the amount of the liability is
> > transferred to the "accounts payable" account.
> >
> > Purchase variance comes into play in order to adjust the difference (if
> > any) between the purchase order item price and the purchase invoice item
> > price.
> >
> > You can control which GL account is credited for Shipment Receipts from
> the
> > screen:
> >
> >
> > https://demo-trunk.ofbiz.apache.org/accounting/control/
> GlAccountAssignment?organizationPartyId=Company
> >
> > in it you can edit (remove and add) the row labeled "Uninvoiced Shipment
> > Receipts" and this will affect the credit part of the transaction
> generated
> > by the shipment receipt event.
> >
> > I hope it helps,
> >
> > Jacopo
> >
> > On Thu, Mar 22, 2018 at 5:21 PM, <[hidden email]> wrote:
> >
> > > Jacopo - Thanks for your email and that makes perfect sense.  Since
> > > these 2 transactions are related in the Purchase Order to AP.
> > >
> > > What controls the GL accounts for Shipment Receipts?  How are the
> > > Shipment Receipt process and Vendor/Purchase Invoice linked?  How does
> > > the Purchase Variance come into play?
> > >
> > > -------- Original Message --------
> > > Subject: Re: GL Account Defaults
> > > From: Jacopo Cappellato <[hidden email]>
> > > Date: Thu, March 22, 2018 8:47 am
> > > To: "[hidden email] ML" <[hidden email]>
> > >
> > > Good morning James,
> > >
> > > On Thu, Mar 22, 2018 at 4:10 PM, <[hidden email]> wrote:
> > >
> > > > Good morning. Something strange just happened in Financials that
> maybe
> > > > this group can point me into the right direction
> > > >
> > > > I received a Purchase Order and the system Creating an balancing
> > > > Accounting Transaction for "Uninvoiced Item Receipt & Inventory". I
> > > > then marked the vendor invoice as Ready and the system created
> another
> > > > balancing transaction with Accounts Payable and Purchase Price
> > Variance.
> > > >
> > >
> > > From what I understand, when the vendor invoice has been posted the
> > > Accounts Payable has been Credited (correct) and the Purchase Price
> > > Variance has been Debited (unexpected); could you please share more
> > > details
> > > about the invoice transaction (you can find them at the bottom of the
> > > invoice detail screen)?
> > >
> > > The account *debited* for each item in a purchase invoice is determined
> > > by
> > > the mapping between the invoice item type and the account id as set in
> > > this
> > > screen:
> > >
> > >
> > https://demo-trunk.ofbiz.apache.org/accounting/control/
> editInvoiceItemType
> > >
> > > In this screen you should see mappings from various purchase invoice
> > > item
> > > types (like PINV_FPROD_ITEM) to the "Uninvoiced Item Receipt" account.
> > > Please check what you have there.
> > > As a side note, the "Purchase Price Variance" (that is usually an
> > > Expense
> > > account) is used by the system when there is a difference between the
> > > purchase price (in the order) of an item and its value in the purchase
> > > invoice.
> > >
> > > Kind regards,
> > >
> > > Jacopo
> > >
> > >
> > >
> > > > I was expected it to create a transaction moving the dollar amount
> from
> > > > Uninvoiced Item Receipt to accounts payable. My question is where
> > > > specifically in the system is the Vendor Invoice transaction
> configured
> > > > for this process?
> > > >
> > > > Thanks,
> > > >
> > > > James
> > > >
> > >
> >
>