Open Forum

PO Receipts against 'DUMMY' Inventory ID

  • 1.  PO Receipts against 'DUMMY' Inventory ID

    GOLD CONTRIBUTOR
    Posted 14 days ago
    Edited by Karla Johnson 14 days ago

    We have an automated process that creates PO's in Dynamics from our other entity's eCommerce site.  Often the inventory item on the order isn't in Dynamics so the PO line items gets created with an inventory item 'DUMMY'.  The line item is charged to a project but when the receipt is done the full amount is going to PPV causing finance to do a JE to reclass the cost to the project.  Is this because there is no standard cost on the 'dummy' item?

    TIA!!

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    Karla Johnson
    System Architect
    Schneider Electric
    Carrollton TX
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  • 2.  RE: PO Receipts against 'DUMMY' Inventory ID

    TOP CONTRIBUTOR
    Posted 14 days ago
    Hi Karla,

    Is the cost changed at the time of the receipt in order to create the PPV or does the PO not contain any cost??

    Normally, the item is received at whatever cost because the warehouse guys don't know what the cost is...they are just verifying quantity.

    The PPV is usually created when the AP invoice is vouchered and the cost of the item is different than what is received.

    I would think as long as the PO being created has the correct cost, then received and the cost matches the AP invoice, you shouldn't have a PPV issue.

    Without knowing more, I'm guessing you're missing the correct cost for the PO line, which is what is causing your issues....

    We have our AP personnel get with me if there is a cost difference between the receipt and the invoice.  Normally ours happens because the PO has last cost and if the PO wasn't updated for the order acknowledgement from the vendor.  This prevents PPV's for us.  Now if the difference is small, then we just allow it to go thru....

    Hope this helps...

    Thanks,
    Michael

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    Michael O'Neill
    Director of Finance
    Eastex Telephone Cooperative
    Henderson TX
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  • 3.  RE: PO Receipts against 'DUMMY' Inventory ID

    GOLD CONTRIBUTOR
    Posted 14 days ago
      |   view attached
    Thanks Michael!
    I was told the cost wasn't on the project but it is.

    The cost is changed on the PO before the receipt is created.  I am going to bet that the PO amount was 0 because the 'DUMMY' inventory item's cost is 0.   Our PPV is done at the time of receipt because AP is required to match the invoice to the PO receipt.

    So it looks as if the actual receipt doesn't show up in GLTran but we see allocator moving it from WIP to COS.  Leaving the account out of balance.
    I am going to contact our partner, I think there is more going on....



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    Karla Johnson
    System Architect
    Schneider Electric IT Mission Critical Services, Inc
    Carrollton TX
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