• Registered: 01/27/2013
  • Posts: 3

Topic: Custom GL for purchase invoices

Hello All,

In Belgian accounting, when you book a purchase invoice, you don't book on stock. This should be booked on a purchases account. The stock account is to be used at the delivery time.

Example:
GRN-
340000 Stock Debit 1000
609xxx Stock-Changes Credit 1000
Invoice-
440000 Suppliers Credit 1210
411000 Incoming VAT Debit 210
604000 Purchases Debit 1000

I could get to this behavior by not using a GRN clearing account and add 2 additional GL on each purchase invoice. Is there a better way to do this? Because this is going to be a problem at some point.

Thanks in advance,

Regards,
Marijn

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: Custom GL for purchase invoices

The normal procedure is first a Purchase Order (PO), then a receival note (GRN) and then a supplier invoice (menu on right side).

If you do a Direct supplier invoice, all these stages will be performed in the background.

If you do a Direct GRN a PO is done in the background. When the supplier invoice is received, you use the supplier invoice (menu on right side).

The purchasing Account is first debited when delivering (Delivery Noote) the product and the Inventory is credited.
The stocks are still in our position until delivering, right?

Try this out on a Training Co or Demo before using it. Look at the underlying GL entry. Read also the Wiki.

/Joe

  • Registered: 01/27/2013
  • Posts: 3

Re: Custom GL for purchase invoices

Thanks for taking time to reply.

I am following the normal procedure. PO / GRN / Iinv.

When I look at the GL transactions, these are not what they are supposed to be for belgian accounting.
At GRN it uses the stock and clearing account.
At invoice it uses the clearing account and supplier payables account.

This is the result in FA
GRN-
340000 Stock Debit 1000
609xxx Stock-Changes Credit 1000
Invoice-
440000 Suppliers Credit 1210
411000 Incoming VAT Debit 210
609xxx Stock-Changes Debit 1000

How it should be:
at GRN the stock account increases countered by stock changes account.
at invoice the purchases account increases countered by payables account.

Marijn

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Custom GL for purchase invoices

All the GL entries in FA is based on what is setup on the Item/supplier/customer/branch.

The COGS account is first entered when the Dilivery Note to a customer.

The way it is done in FA in the correct way of doing it. Please have a talk to a local accountant.

/Joe

  • Registered: 01/27/2013
  • Posts: 3

Re: Custom GL for purchase invoices

Maybe I should have mentioned it in my original post.
I already consulted a local accountant and read the whole wiki before I posted.

In Belgian accountancy you should not change the inventory account.
You need to book purchases on an account and sales need to be booked on a different account.

The inventory account should be changed once per year with stocktaking.
Or if you choose to, you can make bookings on these GL with every delivery, be it in or out.
But these GL are not connected to the purchase and sales accounts.

Basically you have a sales, purchase, inventory, inventory adjustment account per item.

Invoices and Deliveries are using totally separate GL accounts. The correct way for here is how I described it in my first post.

The bookings I posted are purchase only.

Marijn

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Custom GL for purchase invoices

We don't seem to come any closer to the subject.

I know we have many Belgian users that are satisfied with the setup of FrontAccountang.

Of course we can not satisfy all.

I am closing this topic now.

Joe

  • Registered: 12/25/2007
  • Posts: 2,448

Re: Custom GL for purchase invoices

Skynight, please look closer at the GL postings generated in FA, then you will find they are made properly: inventory GL account postings are triggered on delivery/GRN, not on invoicing. (Providing you have correctly set up FA).
Janusz