Journal Entry Architecture - PO Receipt

Modified on Mon, 08 Jul 2013 09:17 by tsanchez — Categorized as: Accounts Payable , General Ledger, Purchase Orders

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   General Information
      Control Account
      PO Clearing Account
   PO Receipt AP Invoice AP Check

General Information¶

A PO Receipt will debit the Item Control account and credit PO Clearing (aka Accrued AP).

The credit to PO Clearing will be cleared when the receipt is invoiced in AP. If the invoice is created without clearing the receipt(s), the Clear Unbilled PO Receipts screen can be used to clear the credit.

Please note that your PO Clearing Account in the GL should reconcile to your Unbilled PO Receipts report. If it doesn't, then the most likely cause is an AP invoice that was distributed to the PO Clearing account without actually clearing a PO receipt.

Control Account¶

When a stock item is received, the Inventory Control account is determined by the Control Account listed on the OHF tab of the Item Master.

If that account is blank or invalid, then the Control Account listed on the Warehouse screen will be used.

If that account is blank or invalid, then the Control Account listed on the CID Maintenance screen will be used.

Non-Stock items follow the same rules, however the user may enter a GL account directly onto the PO to debit an account.

PO Clearing Account¶

The PO Clearing account is determined by the PO Clearing account listed the OHF tab of the Item Master

If that account is blank or invalid, then the PO Clearing account listed on the Warehouse screen. will be used.

If that account is blank or invalid, then the Control Account listed on the CID Maintenance screen will be used.

PO Receipt >> AP Invoice >> AP Check¶

The following is a list of typical journal entries that would be recorded from time of PO Receipt through issuing payment to the vendor.

Transaction	Debit	Credit
PO Receipt	Inventory Control	Accrued AP
AP Invoice	Accrued AP	Accounts Payable
AP Check	Accounts Payable	Cash

Please note that the Cost of Goods entry is made when the item you received is shipped to a customer (not when you receive it). This aligns your cost and revenue entries by recognizing the corresponding cost with each sale.