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Purchase, Expenditure for Product account - Shows Balance

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Dear All,

We are confused about some entries happening when we post Purchase Return Invoices.

Suppose we Purchase an item at $100 and later on add a miscellaneous charges adjustment of $5 on it. Thus, the total cost amount of this item is $105.

Now we return this item to its vendor and post purchase return invoice. Here, the cost price of Item is $105, but, return price is $100.

Thus, the voucher goes:

Vendor Balance: - $100

Purchase, Expenditure for Product:= $100

Purchase, Inventory Receipt:= $105

Purchase, Expenditure for Product:= $105

Further, its inventory transaction shows Profit and Loss, Posted Amount:= $5.

Thus,

a) Purchase Expenditure for Product shows a balance of $5.

b) We are unable to find any GL entry for [Profit and Loss, Posted Amount]

We want to understand whether GL account for [Purchase, Expenditure for Product ] should balance as Zero. Whether GL entry for  [Profit and Loss, Posted Amount] be posted and if yes, what setup should be done to make this posting happen.

Currently, we are in a dilemma that the Main Account for [Purchase Expenditure for Product] is showing balance. Whereas, some Inventory Transactions show some value for [Profit and Loss, Posted Amount] in updates tab, but, can't find its corresponding GL entry.

Can anyone help me with this?

Best Regards,

B. Gurjar


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