Purchases and Direct Cost Applied Accounts in Microsoft Dynamics NAV When working on new Dynamics NAV implementations (and for that matter, existing NAV solutions), we get a lot of questions about the Purchases and Direct Cost Applied Accounts—namely, what are they used for? We were trained in accounting that, when an inventory purchase receipt is invoiced (vouchered), we would debit the Inventory Account and credit the Accounts Payable Account and be done with it. Dynamics NAV doesn’t handle it that way. When we look at the General Posting Setup in Dynamics NAV 2013 (see below), we see that there is a column for the Purchases Account and the Direct Cost Applied Account. Figure 1 - General Posting Setup in Dynamics NAV 2013 When a purchase receipt is invoiced (vouchered) in NAV, we get the following General Ledger entries: Dr Purchases Account for the Actual Invoice Amount Cr Accounts Payable Account for the Actual Invoice Amount Dr Inventory Account for the Ac...
Remember to Make changes on the Record Variables to point the right records
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