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Is it safe to receive purchase orders but never enter the vendor invoice?

  • 1.  Is it safe to receive purchase orders but never enter the vendor invoice?

    TOP CONTRIBUTOR
    Posted Jun 10, 2020 02:43 PM
    We have a scenario where we will order items on purchase orders and receive the POs, but we will never get the vendor invoice.  Is it OK to just leave the inventory transactions that way, without ever invoicing the POs?

    Thanks in advance for any advice.

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    Daniel Zook
    Director of IT
    Lehman's
    Dalton OH
    ------------------------------
    Academy - Online Interactive Learning from Experts


  • 2.  RE: Is it safe to receive purchase orders but never enter the vendor invoice?

    GOLD CONTRIBUTOR
    Posted Jun 10, 2020 05:39 PM
    Hello,

    I am sure lots of folks will have an opinion on this. I, for one say it is probably not a good idea, but it all depends on many factors such as what will be the general ledger posting of the receipt goods. Are the goods part of inventory, meaning will they affect the inventory value in the inventory module. The second one being the one that will probably cause the most problems as those will cause differences between physical and finance inventory amounts and inventory close.

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    Juan Sebastian Grijalba
    Berkowitz Pollack Brant
    Miami
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 3.  RE: Is it safe to receive purchase orders but never enter the vendor invoice?

    SILVER CONTRIBUTOR
    Posted Jun 10, 2020 05:45 PM
    For how long would you leaver the orders in received status? May I ask the reason behind leaving these orders in received status?
    You have to settle the transactions for month end and year end closing, so how you plan to reconcile the GL with inventory?

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    Shilpi Thakur
    Freelance AX/D365 Microsoft Consultant
    Dynact Consulting Ltd
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 4.  RE: Is it safe to receive purchase orders but never enter the vendor invoice?

    Posted Jun 11, 2020 03:31 AM
    Daniel, while I'm sure many of us will be envious you can buy goods and never pay for them you are likely to be storing up trouble unless your configuration has been designed for this scenario. For most people leaving receipts open will result in GRNI balances and Accounts Payable liabilities that grow and grow in the accounts and stock values that never get financially updated. Your setup can be designed to prevent these things ..... but I suspect most people would process dummy invoices and credit notes to keep things tidy in the scenario you describe.

    ------------------------------
    Jonathan Howe
    IT Manager
    Cross Manufacturing
    Bath, UK
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 5.  RE: Is it safe to receive purchase orders but never enter the vendor invoice?

    TOP CONTRIBUTOR
    Posted Jun 11, 2020 08:07 AM
    Thanks to everyone who replied!  I'll let our team here know that we should put in "dummy" invoices to keep things under control in AX.

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    Daniel Zook
    Director of IT
    Lehman's
    Dalton OH
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 6.  RE: Is it safe to receive purchase orders but never enter the vendor invoice?

    SILVER CONTRIBUTOR
    Posted Jun 11, 2020 08:43 AM
    HI Daniel,

    I would process a 0 dollar invoice to close out the PO.  As has been mentioned, if you receiving these goods at anything other then 0 purchase price you will be accumulating a balance in your GRNI.  One other issue is that these POs would still appear as open.  if you ever upgrade to whatever the next version of D365 is, you would normally import all open POs, which in your case would mean importing many many old POs or someone manually reviewing them and deciding which POs are really open and waiting for the vendor to send an invoice and which will never have an invoice.

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    Barclay Hershey
    Financial Analyst
    Sugar Creek Packing Co
    Cincinnati OH
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 7.  RE: Is it safe to receive purchase orders but never enter the vendor invoice?

    TOP CONTRIBUTOR
    Posted Jun 11, 2020 11:10 AM
    ​It sounds like you are already convinced, but there is another reason you need to invoice those transactions.  If you never invoice the transactions, the InventTrans receipt status will never change to "Sold".  This means the transaction will always be considered open by the system.  You'll also leave the purchase price in the Uninvoiced Receipts GL account.  At some point, you will no longer be able to reconcile the account.

    Invoice those receipts for an amount of 0 if you are not going to pay for them.

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    Kevin McLean
    Strategic Solutions NW, LLC
    Beaverton OR
    ------------------------------

    Academy - Online Interactive Learning from Experts


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