Merchandise vendors have the Inventory G/L account set in the Expense G/L Field in Vendor Master. Inventory G/L account properties are defined in the G/L Control Table.
Navigate to Accounting > General Ledger > G/L Control Table > Inventory field to view this setting. For multi-branch companies, the specification should use the main branch G/L suffix, as shown below.
Go to File > Vendor > Master > Setup (tab on left) > General (tab on bottom) to view the accounts in the Expense G/L and Liability G/L fields.
Navigate to Accounting>Accounts Payable>Invoice Entry,
- Type or search for the Vendor.
- Type a unique Invoice Number.
Note: This creates the A/P record and cannot be edited after the record is saved. If an existing invoice number is entered, the historical information is retrieved.
- Change Remit-To to assign payment to an alternate vendor (optional).
- Enter the Invoice Date.
Note: The date does not determine the accounting period.
- Change Branch, if necessary.
- Select an associated PO.
Note: Only purchase orders associated with the invoice branch are listed. Verify a PO is linked by the value in Linked Receipts. Best practice: Select the PO from the list instead of typing one.
- Change Terms, if necessary.
- Type the vendor invoice amount (before discount) in the Gross Amount field.
- Add Freight, if necessary.
Canadian users only: Enter the Tax amount. This field is linked to a specific G/L account.
- Add an Other Amount Label to include an additional adjustment.
Note: Small rounding differences on large orders are frequent. Using Other Amount Label to record differences prevents cost variance between the inventory value and G/L balance.
- Change This Invoice 'AP' Accounting Period, if necessary, and allowed.
Note: The current Accounting Period is the default, controlled by the End of Month Close cycle. If accounting period changes in A/P are allowed, the period can be changed to another period in the current fiscal year. See Change period in accounts payable.
- Click Add G/L Account if any additional amounts were entered, to manually add the distribution.
Note: The Liability, Discount Amount, Discount Date, and Due Date fields are filled automatically.
The highlighted fields in the image below illustrate the Merchandise Amount, Linked Receipts and Inventory G/L Distribution are in balance. Amounts added for Freight and Tax are routed to the appropriate G/L accounts.
When there is a difference between the value of a linked purchase order stock receipt and the amount posted to the Inventory G/L account, the variance is posted to the A/P Receiving Variance G/L account, specified in the G/L Control Table.
Due to rounding, a $400 linked PO does not match the vendor invoice amount of $400.05.
The value assigned to Inventory matches the Linked Receipt Value with the difference posting to the AP Receiving variance account from the G/L control table.