Receipts are assigned source code PO-RC on the G/L Transactions report.
Receipt transactions debit the item's inventory control account and credit the item's payables clearing account with the total of extended item cost, allocated taxes, and any prorated additional costs and their allocated taxes.
If an item uses the LIFO or FIFO costing method, the receipt number and date, item quantity received, and item cost are added to Inventory Control's receipt buckets for the item.
Receipt Adjustments
If receipts are edited to change item quantities or costs, additional general ledger transactions are created:
- If quantities or costs increased, the journal entries debit the inventory control (or Inventory/Expense) account and credit the payables clearing account.
- If quantities or costs decreased, the journal entries debit the payables clearing account and credit the inventory control account.
Non-inventory Items
If a receipt includes a non-inventory item, the expense is posted during posting or day-end processing, and the non-inventory payables clearing account is credited.
Posting the invoice in Accounts Payable generates a general ledger entry to debit the non-inventory payables clearing account and credit the payables control account.
Prorated Additional Costs Added on an Invoice
If a new additional cost is added on an invoice, general ledger journal entries are created to prorate the cost to the receipt items, if applicable, debiting the inventory control accounts for the items and crediting the payables clearing account.
Job-Related Receipts
Items received for projects do not go into inventory. Instead, the value of the item goes into a Work-In-Progress account specified for the contract in Project and Job Costing.
When you post job-related receipts or invoices, credit notes, and debit notes with changes to the receipt information, Purchase Orders creates general ledger journal entries to update the Work-In-Progress and Payables Clearing accounts with the total of extended item cost, allocated taxes, and any prorated additional costs and their allocated taxes.
The program also updates the committed and actual quantities and costs for the contract in Project and Job Costing.
Purchase Orders also creates transactions for any overhead associated with the items or additional costs, and for non-inventory items (such as labor) received for the job.