Re: [WebERP-developers] require a clarification on the way gl posting works for PO

[Jagannathan N. <pn...@gm...>]

Yes Tim, iam able to get the idea of why its done like that ...
Thank you

On 7/22/07, Tim Schofield <tim...@go...> wrote:
>
> Jagan, At the point when you raise the grn, you are merely doing a
> stock transaction and on webERP stock transactions are done at
> standard cost. (This can be turned off altogether in the company
> preferences.)
>
> The liability to the supplier is only created when the supplier sends
> you an invoice.
>
> What happens if you create an order for less than the suppliers
> price?, are you only legally bound to pay the price on your order?
>
> Thanks
> Tim
>
>
> On 22/07/07, Jagannathan Narasimhan <pn...@gm...> wrote:
> > Thanks a lot Tim , iam able to understand everyword of it .....
> >  But iam trying to understand the business logic behind why this works
> like
> > this .....
> >
> >  When purchase order states the AMount as 50
> >  , iam bound legally to pay 50 for 1 unit of item delivered .
> >
> >  Why iam i liable only for 45 after i received the Goods ?
> >
> >  Receiving the Goods is the point at which transaction is realized ,
> correct
> > ?
> >
> >  Again thanks a lot for the response .
> >  (Iam new to all this , i just finished my MBA and trying to implement
> this
> > ERP for someone near my hometown to learn things , hands on ... )
> >
> >  Thanks & Regards
> >  Jagan
> >
> >
> > On 7/22/07, Tim Schofield
> > <tim...@go...> wrote:
> > > Jagan, The way this works, is at the point the GRN is raised the stock
> > > value is increased by the Standard cost of the items received, and the
> > > opposite entry goes into a suspense account. At the point when the
> > > invoice is raised, and the actual cost of the items is known to
> > > webERP, then the variance is posted to the stock account, and the
> > > value in the suspense account is transferred to the purchase ledger,
> > > together with the opposite entry for the variance. Thus in your
> > > example:
> > >
> > > On receipt of GRN:
> > >
> > > Dr Stock                    50.00       (Standard cost)
> > > Cr GRN Suspense     50.00
> > >
> > > Then on invoice being posted:
> > >
> > > Dr Stock                     5.00        (Variance against Standard)
> > > Cr Purchase Ledger  55.00       (Invoice Value)
> > > Dr GRN Suspense     50.00
> > >
> > > Hope this helps,
> > >
> > > Tim
> > >
> > >
> > >
> > > On 21/07/07, Jagannathan Narasimhan <pn...@gm... > wrote:
> > > > Hi ,
> > > >  I was trying to recieve a goods after creating a Purchase Order .
> > > >
> > > >  i have a question ....
> > > >
> > > >  if i have an Item X with cost in the system as say 50
> > > >
> > > >  i create a purchase order for 1 Unit of it at Cost = 55 and receive
> it
> > .
> > > >
> > > >  Why does the system show my liability as only 50 ?  ,
> > > >  it should show it as 55 as purchase Order states it and i have
> received
> > the
> > > > Goods .
> > > >
> > > >  I noticed that the difference was posted after invoicing
> > > >  , but why does the system show a wrong liability and asset at that
> > point ?
> > > >
> > > >  Thanks
> > > >  Jagan
> > > >
> > > >
> > > >
> > > >
> >
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