1 Business scenario
The vendor sends the invoice before the goods are delivered to us. We would like to book the invoice before receiving in the goods. However, the invoice is approved after the goods are received in our warehouse and after our quality control. As a result, payment runs must exclude those invoices.
2 Process flow
A purchase order has been created for 59,50 EUR· Create a new Invoice register journal under Account Payable > Journals -> Invoice Register
· Enter the line details by selecting Invoice register lines for the same vendor from the purchase order. The value of the register line should be the purchase total amount (tax included)
Tip: The purchase order number(s) can be populated at that stage before posting in the Purchase order field. For multiple purchase orders, separate them with a semicolon.
· Post the Journal, then you can see those messages. That indicates that the invoice is in a pool that can be selected and matched with the purchase order that is received.
We can access the invoice pool under Account Payable > Inquiries > Invoice Pool. ·
That event triggers those following accounting entries :
————————————————————————————————————————Debit Purchases in transit
Debit Sales tax
Credit Account Payable (Unapproved Invoices)
These accounts are configured under the vendor posting profile as « Arrival » and « Offset account ».
Note: The invoice is not approved yet which means the invoice is not fetched by Dynamics AX in the payment proposal and cannot be paid.
· The goods are received by the warehouse team. They post thus an item arrival journal. That event triggers those following accounting entries :
————————————————————————————————————————Debit Goods Received not invoiced (GRNI)
Credit Purchase accrual
Now that the goods have been received, the next step is to match the purchase order and the invoice together. To do so, we will need to first retrieve the invoice that has been booked from the pool and match it with the purchase order/receipt.
Note: Either the warehouse team communicates to the AP team or the AP team exports the GRNI report (Purchase accrual) and check the invoice pool to compare.
Here is how we do it : Create a new invoice approval journal under Account Payable > Journals > Invoice approval journal.
Go to Lines, then find the invoice from the pool by selecting Find vouchers.
Select the invoice, then click Select. After the invoice is fetched, the next step is to match the invoice with a purchase order(s) that’s been received.Select Functions > Purchase order
Afterwards, the standard vendor invoice form opens and shows the product receipt posted by the warehouse team.
Click Post. That event triggers those following accounting entries :–
————————————————————————————————————————Debit Purchase accrual
Debit Account Payable (Unapproved invoices)
Credit Goods Received not invoiced (GRNI)
Credit Purchases in transit
Credit Account Payable (Vendor liability)
Once posted, the invoice disappears from the invoice pool under Account Payable > Inquiries > Invoice pool