Purchase Order Product Receipt and Vendor Invoice Posting in Microsoft Dynamics AX 2012 R3

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Purchase Order Product Receipt and Vendor Invoice Posting in Microsoft Dynamics AX 2012 R3


In Microsoft Dynamics AX 2012, when a purchase order is product receipt and vendor invoice updated for stocked items, there are two accounting processes and resulting entries which occur:
The accrued liability is updated (new feature in AX 2012)
The inventory cost is updated (available in AX 2009)

To enable these accounting processes, two new posting types are available and a main account must be specified for each:
Purchase expenditure, un-invoiced: This posting type is used to accrue the liability and product receipt amounts when a purchase order is product receipt updated.
Purchase expenditure for product: This posting type is used to offset the liability and inventory amounts when a purchase order invoice is updated.

The accounts for these posting types can be specified in the Posting form (Inventory and Warehouse management> Setup>Posting>Posting) and on the Purchase order tab on the Item groups form (Inventory management>Inventory>Item groups).

AX 2012 R3

In AX 2012 R3, both accounting processes referenced above will create subledger journal and voucher entries. For posting type Purchase expenditure, un-invoiced, accounting entries which net to 0 will not be transferred to the general journal as in AX 2012 R2. The Purchase expenditure, un-invoiced postings are not displayed in the Voucher transactions form but in the Subledger journal form. The Subledger journal form will display all generated subledger accounting entries, including those not transferred to the general ledger.

Product Receipt Voucher transactions and Subledger journal:
Product Receipt Voucher transactions and Subledger journal
For posting type Purchase expenditure for product, accounting entries that net to 0 will no longer display both a line for the credit and debit entries in the Voucher transactions form as in AX 2012 R2 but will be displayed in the Subledger journal and transferred to the general ledger in a single zero-amount accounting entry.

Vendor Invoice Voucher transactions and Subledger journal:
Vendor Invoice Voucher transactions and Subledger journal:

Instances exist for both posting types Purchase expenditure for product and Purchase expenditure, un-invoiced where there will be a balance for stocked items such as from currency translation or a stocked item which is returned with a variance between the unit price and average cost.

This blog post references the Microsoft Dynamics AX 2012 R3 White Paper ‘Accounting for stocked items on product receipts and vendor invoices’

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