Whats the thought on how to “clear out” an orphaned PO Receipt that you never got (and never will get) invoiced for?
We use an Accrual account, so any PO Receipt credits that account, and debits the appropriate account based on the PO type (PUR-STK db’s Inventory, PUR-UKN db’s an expense acct, etc …).
Normally the AP invoicing process debits that accrual acct, and credits AP.
Say the supplier goes belly up and you’re never going to get an invoice for the receipt. Do you just create a 0$ invoice, and let the diff fall to a variance account?
If you want to specify the account the write-off will go to, you can enter an AP invoice for the purchase amount and then use an AP Invoice Adjustment to close the invoice and credit the account you select.
We just use a $0 invoice whenever we know that we’re never going to get invoiced for the PO receipt. The difference goes to purchase price variance account. Since we entered $0 invoice, the entire PO cost will go to favorable purchase price variance.
Since we’re creating a dummy invoice, we do have a standard format to enter the invoice number, so in the future we know or the auditors will know what that invoice was for.
I created a zero dollar AP invoice against an outstanding “Rcv’d, Not Invc’d”, using a “Receipt Line”. That made a ADJ-PUR tran, but had a tran date that I don’t know where it came from.
The PO date was 1/24
Due Date:2/8
PO Rcpt entered on 5/9 (with 5/9 rcv’d date)
Zero dollar AP Invoice entered on 7/10.
Running WIP Recon (using sysdate of 7/1 - 7/31), shows the ADJ-PUR dated 2/11.
The Part Tran History confirms this
Where did that 2/11 date come from?
And even more important, does this change the cost? We use AVG costing and it looks like it does.
We used standard costing, so can’t comment on impact on cost.
Regarding the back date, just out of curiosity, what Invoice number did you use? Just wanted to see if that invoice number was previously used and it back dated to that old invoice’s date.
in the receipt entry for that po, is the “receipt date” and “Arrival date” the same?
Above may not be the problem, but i was just curious if they have caused the issue.
