AP Invoice

This section details the hierarchy followed by Greentree Desktop when posting the debit and credit transactions for an AP Invoice transaction for an inventory line.

Information This assumes inventory has previously been received using the PO Receipt function or PO Shipment function. For an AP invoice transaction where inventory is received when the invoice is processed.

To clarify the hierarchy outlined below, use the same example outlined for the Receipt transaction, with these additions:

$300.00

[Invoiced value] - this represents a variance of $200 between PO receipt & invoiced value

$37.50

[Tax value on purchase]

Credit [-$337.50]

Supplier.APControl

(Creditor's account)

GLControl.APControl

MyBranch.glAccountStructure

GLControl.suspense

Debit [+$100]

Supplier.myClearingAccount

(Stock Supplier

GLControl.myClearingAccount

Clearing A/c)

MyBranch.glAccountStructure

GLControl.Suspense

Debit [+$200]

Supplier.myPOVarianceAccount

*see note below

GLControl.myPOVarianceAccount

MyBranch.glAccountStructure

GLControl.suspense

Debit [+$37.50]

Supplier.taxControl

(Tax Input account)

GLControl.inputTax

MyBranch.glAccountStructure

GLControl.glAcountStructure

Information The $200 debit transaction is recognised as a variance between the PO received value and the AP invoiced value. A variance like this posts based on the selected PO Module Control options.

For example, inventory line controls have Adjust General Ledger Only and PO Variance Account options selected. The debit value of $200 variance will be posted to the PO Variance Account.

If the PO Clearing Account is selected, the transaction outlined above posts as:

Debit [+$200]

Supplier.myPOClearingAccount

GLControl.myPOClearingAccount

MyBranch.glAccountStructure

GLControl.suspense

If the GL Expense Account is selected (which is mandatory if the option to Adjust Cost of Stock Item is selected), the transaction outlined will post as:

Debit [+$200]

StockItem.stockAccount

StockItem.myINAnalysisCode.stockAccount

Location.stockAccount

Warehouse.stockAccount

GLControl.stockAccount

GLControl.suspense

Notes:

If the AP invoice line is for a GL or NS line, any variance will post using the Adjust General Ledger Cost account selected above.
If the variance is related to a JC line, any variance posts using the Adjust Cost of Job/Adjust General Ledger Only account selected.
If the variance is related to a FA line, any variance posts using the Adjust Cost of Asset/Adjust General Ledger Only general ledger account selected.
If the AP invoice line is for a IN line that is allocated to a job, an automatic JC GL Cost Adjustment transaction will also be generated when the invoice is saved if Adjust Cost of Stock Item is selected for IN invoice lines. This debits the job and credit the inventory account with the value of the variance. The job assumes the additional cost of the inventory item.
If the invoice is for an additional charge (resulting from receipt of a shipment), variance values post using the accounts specified in AP Non-Stock Code Maintenance.
If the General Ledger module is not in use within AP, a PO variance journal is not created.