(ID# 9939) This Inventory option in Options Configuration allows you to include prepaid purchase orders in General Ledger Passoff (GLP) from Inventory Transaction Register (ITR). With this option set up, you don't have to make manual journal entries to back out the amount from Prepaid Inventory and add it to Purchases/Inventory.
To use this option, option 402 “Prevent AP Passoff for Prepaid Vouchers?” must be set to Yes. If this option (9939) is set to E or N, when a prepaid purchase order is received by the Receiving Report (RRP), ITR allows GL Passoff on the line items received. When GLP for ITR processes, the system debits Purchases/Inventory and credit Prepaid Inventory if it is a Normal PO or credits Purchases/Inventory and debits Prepaid Inventory if it is a Credit/Defective PO.
Setup: A "Prepaid Inventory"account, by Store and by Department, is available in Set Up G/L Passoff (GLSET) to identify the prepaid inventory GL account. At minimum, the Store - Prepaid Inventory should have a GL account assigned before setting option 9939 to E or N. The GL account number for Prepaid Inventory should be the same GL account number used when manually entering a voucher for prepaid inventory. Once GLSET has been set up, this option (9939) can be set to either E or N.
How to use: Create a PO in Purchasing & Receiving (MPO) to account for the inventory being purchased where the vendor is requiring prepayment. Manually enter the voucher in New A/P Transactions (ATMU) for the PO Vendor as either a Regular or Prepaid voucher. The PO number of the open purchase order in MPO should be entered in the PO Number field of the voucher. "PREPAID" should also be entered in the Voucher Reference field. When you post the voucher via Post Transactions to A/P Files (RATJ), RATJ updates the PO to prevent the PO from generating a voucher when the PO is received. When the PO is received, Accounts Payable Passoff (APP) should not generate a temporary voucher. The line items received should update ITR with the quantity and purchase cost. Since they were received on a "prepaid" purchase order, the Sub-source should indicate "Prepaid" and the GL Passoff indicator should match to what option 9939 is set for. For a Normal PO, if the Prepaid ITR records have the GL Passoff flag set to E, when GLP for ITR runs, it will credit the Prepaid Inventory GL account and debit the Purchases/Inventory GL account from A/P Control Maintenance (ACON). For a Credit/Defective PO, it will debit the Prepaid Inventory GL account and credit the Purchases/Inventory GL account from ACON.