i am new to the Business Central world, and I am working with Purchase receipts and would just like to confirm that when you receive a Purchase order there are no general ledger postings. I was expecting to see a debit to the stock account and a credit to the goods received not invoiced account, but cannot see that anywhere.
When I post preview the purchase order it seems to post the credit to accounts payable or trade creditors account and debit stock at point of invoicing.
I am used to having a goods receipted report in the purchasing module so I can age the receipts to see how old they are and which suppliers I need to chase for invoices.
As I cannot find any where in the configuration to tell BC which Goods Received not Invoiced account I wish to use, I think my understanding is correct.
Could someone please confirm this as its driving me crazy!!!
It is correct that BC/NAV does not create any G/L entries, when you post a purchase receipt. At this time you don't know the actual cost, so most companies don't want it to show here at this point. What is created is an item ledger enter for your inventory, so that it becomes available for your sales orders etc. It also creates a value entry, but with no cost in G/L.
When you invoice the purchase order, then it creates the G/L entries to your stock and vendor accounts etc.
There is a feature in NAV which allows you to also post expected inventory cost, at time of receipt. There are many questions here already about how to use the expected costs features. Just use the search function above. Even if some of the questions/answers are over 10 years old, then they are still very current, functional wise, as this is "old" functionality.
As to see vendor orders which are received, but not invoiced, then you need to make the field "Amount received not invoiced (LCY)" visible via personalization (either in Windows or web client) if not already visible. Then this field will show you the received but not invoiced orders.
Thanks Erik, for your quick response, I did try and check the posted purchase receipt to see if I could see an item ledger entry on the receipt record as you can with other transactions such as posted invoices (by going to the home ribbon and clicking on navigate) but cannot see the navigate option on the posted receipt record. So how do you get to the receipt item ledger entry to verify it looks correct.
I am also presuming that if the purchase receipt updates the item ledger entry when you invoice that receipt and click on preview posting for the invoice the item ledger entry will not appear.
I will also definitely check out the posts re post expected inventory costs at time of receipt,
Thanks again for your help! you are a life saver!! In the ERP systems I have used before there has always been a goods received not Invoice posting and now working with a system that does not have it, is a bit alien to me - but hopefully I will get there soon.
As Erik explained, it is up to the setup if you want G/L entries upon receipt or when posting purchase invoice. The beauty of NAV is that you can go either way. To my experience it is a 50/50 between the implementations I have been involved in (many). Expected inventory value can easiliy be tracked without posting to G/L and if posting expected cost to G/L it doubles the inventory transactions, which in some cases can be totally useless and a drawback.