Purchases of Non-Stock Items and Services with Receipts: Generated Transactions

To process a purchase of non-stock items and services for which a receipt is required, you create an AP bill and a receipt. On release of these documents, the system generates GL transactions described in the following sections.

Transaction Generated on AP Bill Release

When an AP bill prepared for a purchase order (or for purchase receipt) is released, the system creates a batch of the following entries.


Account	Source of Account	Debit	Credit
Accounts Payable account	Vendor	0.00	Amount
PO Accrual account	Item	Amount	0.00

You can view the reference number of the GL batch generated for a particular AP bill in the Batch Nbr. box on the Financial tab of the Bills and Adjustments (AP301000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.

Transaction Generated on Release of an Inventory Receipt

When the inventory receipt for the purchase receipt is released, the system creates a batch of the following entries.


Account	Source of Account	Debit	Credit
Expense account	Vendor	Amount	0.00
Inventory Purchase Accrual account	Item	0.00	Amount

You can view the reference number of the GL batch generated for a particular receipt in the Batch Nbr. box on the Financial tab of the Receipts (IN301000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.

Your company may want to recognize expenses when a non-stock item is sold—that is, to post the item’s cost to an expense account when it is sold. To do this, you need to select Sales in the Post Cost to Expenses On box on the Non-Stock Items (IN202000) form for the non-stock item. With this setting, if the Inventory feature is enabled on the Enable/Disable Features (CS100000) form and the item is purchased, the system creates a batch of the following transactions on release of the inventory receipt. The Expense Accrual account is used instead of the Expense account. The item’s cost is posted to the Expense account on release of a sales invoice.


Account	Source of Account	Debit	Credit
PO Accrual account	Posting class settings on the Posting Classes (IN206000) form	0.00	Amount
Expense Accrual account	The posting class settings on the Posting Classes form	Amount	0.00

If the Inventory feature is disabled, on release of an AP bill, the system creates a batch of the following transactions.


Account	Source of Account	Debit	Credit
Accounts Payable account	Vendor	0.00	Amount
Expense Accrual account	Item	Amount	0.00