Issue/Symptom/Question

What kind of accounts need to be setup for the Inventory and PO Receipt Accounts setup at the Warehouse on the Accounts Info button?

Applies To

Inventory > Setup >Warehouses

Resolution/Fix/Answer

The Inventory Adjustment account should be a non-edit rule expense account, this is the account PENTA will adjust when a User does an inventory cycle. The inventory variance is expensed in the period of the cycle count.

The PO Receipt account should be a non-edit rule liability account.  The Invoice entered against the PO clears the PO Receipt Account and replaces it with the Accounts Payable.  In theory the PO matches the AP Invoice, but if it doesn't the AP Invoice Entry will book an adjustment.

Receipt Entry of Inventory:

   Dr.  Inventory

   Cr.      PO Receipt

AP Invoice is entered:

   Dr.  PO Receipt

   Cr.      Accounts Payable