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Clearing up Old Received but Not Invoiced Purchase Orders in NAV

It is not uncommon to find clients who have posted Purchase Receipts but have not invoiced that receipt correctly. In order for Microsoft Dynamics NAV to accurately value inventory and Cost of Goods Sold, all Purchase Receipts must be invoiced.

We have written a blog on that subject: Accounts Payable to General Ledger Reconciliation in Microsoft Dynamics NAV.

The question, then, is, “How do I clear out the old received but not invoiced receipts?”

First, you must invoice the old receipt. When you do that, use the original ‘expected cost’ from the purchase order line. This will create a Payable to the vendor that needs to be removed.

To remove the Payable, you will need to create a Dynamics NAV Credit Memo (we have always thought of this as a Debit Memo, but that is another story).

The Credit Memo should be a G/L type and should refer to the Purchases Account that was debited when the old receipt was invoiced.

The resulting G/L from the invoicing and credit memo:

Purchase Invoice

Debit—Purchases Account

           Credit—Accounts Payable

Credit Memo

Debit—Accounts Payable

           Credit—Purchases Account.

You may also be interested in our blog on the Purchases Account: Purchases and Direct Cost Applied Accounts in Microsoft Dynamics NAV

For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

For more step-by-step instructions on how to perform specific tasks in Microsoft Dynamics NAV, see our collection of How-To blogs.

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