AP Invoice Including Receipt

Learn about the hierarchy followed by Greentree Desktop when posting debit and credit transactions for an AP invoice transaction for an inventory line.

The hierarchy assumes that the inventory is being received at the same time the invoice is processed.

If the costing method is standard cost, and there is a variance between the actual invoiced cost and the item's standard cost, the Cost of Purchase Variance Account specified on the General Ledger Module Control form is updated with the value of the variance. The StockItem:stockAccount is debited with the standard cost value, Supplier:APControl is credited with the actual cost, and the variance posts to the Cost of Purchase Variance Account.

If the line being received is linked to a sales order it is an indented item), and the PO Module Control option Indent items use PO receipt cost is selected, then any variance between the received (actual) cost and the item's system cost (for example, average, standard) posts to the COS Variance Account specified on the General Ledger Module Control form.

Inventory to Job Receipts

If the inventory item on the transaction line is allocated to a job (if the Job Cost module is in use), an additional transaction is created and posted to the general ledger, which transfers the cost from the stock account to the job account:

The transaction types for this transaction are determined from the PO Module Control form:

The cost value used for this transaction is either the item's system cost or the received cost, depending on the setting of the Purchase Orders Module Control option Use receipt cost for JC linked items. If the cost is used, any variance between the item's system cost (for example, average, standard) and the receipt cost is posted to the COS Variance Account specified on the General Ledger Module Control form.

• AP Invoice post-receipt
• PO Module Control