AP charges to Inventory account

I would like some information from this community regarding inventory GL accounts. If you supply chain department creates an error with a purchase order and is reflected from the invoice, what account do you use to expense the discprency? We have accounts set up for tolerances and other adjustments, but if an item comes in and the buyer cannot locate the PO to which this item belongs to, do you charge the item through AP to the inventory account or do you use another account? I have always been told by Lawson support that the only things that should be found in GL90 for an inventory account are IC and PO transactions, not AP transactions. Just looking for some advice.

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Comments

jon-athey

For us if an item is delivered without a PO number a discrepancy sheet is filled out and a buyer will try to figure out which PO it belongs to. If they can't determine the PO then it could sit in receiving for some time until someone calls wondering where there stuff is. If or when that happens the buyer will require that person to enter a req for the item or if they have previously give them the req number. Until it can be properly determined for which department the item was ordered we don't enter anything in Lawson. If the invoice came to AP for processing and it had the PO number identified they wouldn't be able to match it because there would be no receipts. It would then show up in our buyer's RNI report and hopefully they would put it together that the item sitting in receiving is related to that. Only inventory goes into our inventory accounts.

dechevar

Tammy,

We require reqs for all supply orders to avoid this. If you cannot locate the PO, PO54 may help or RQ42 if you are using requisitioning. You should definitely never direct post AP to inventory. It will skew your financial reports. Add it to a non-stock PO to your Supply Chain AU and do a return to the supplier if you need to track it.

We consider an item delivered without a PO a supplier pick error. If it is from our prime distributor, we ensure there will be no invoicing for the item and send back on next truck. If an invoice has been issued, our distributor must have a PO. We will add the item to that PO and process as a return. If it is from another supplier, we will require them to do a call ticket to pick up the item or consider it a donation if they do not pick up.

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