Accounting invoicing without increasing inventory

JoshC85

Member
Currently we have a tier 2 supplier that is providing parts to another tier 1 supplier that there in turn provides a sub-assembly to our facility. We are receiving an invoice from the tier 2 supplier , but the inventory never physically arrives here. We have been processing the invoice and the inventory shows up in JDE , but this is wrong. Is there a way to set this up so that we can process the invoice(supplier payment), but not bring virtual inventory into JDE?
 

Vic Clarke

Member
Consider entering the tier 2 supplier purchase order with a Non Stock Line Type, such that when the PO is received Inventory is not updated. The supplier invoice can then be matched to the PO receipt.
The items can still be setup on the Item Master with appropriate descriptions and supplier item pricing and you can still track quantities and values purchased.
 

JDEOngoing

Member
Hi, Are you able to use Direct Ship Orders? They bypass Inventory altogether
Haven't quite worked out your triangulation of Suppliers
 

Craig_Potter

Reputable Poster
Hi Josh,
It probably depends on what you are trying to achieve. Do the Accountants want to keep the stock supplied from the tier 2 supplier on the balance sheet or are they happy to expense it?
If the latter, Vic's solution is looking good.
If the former they will probably need to substantiate this asset, so your virtual warehouse makes a lot of sense... I am assuming that the problem is probably around adjusting the Tier 2 stock levels?

If so, have you thought about ways of using the software to reduce the virtual inventory of Tier 2 goods as you receive the completed goods from the Tier 1 supplier?

This sounds like Outside Operations (see WO processing), so consider using Work Orders with WO Completions to "receive the Tier 1 inventory Item" (with Outside Operation PO's to pay Tier 1 supplier and backflush to reduce the tier 2 stock) - [having the Tier 2 Item in BOM of Tier 1 Item also makes sense to the costing of Tier 1 Item]
OR
Purchase Orders for Tier 1 with a negative free good of Tier 2 Item (not sure if that works in your version?)
OR
Not sure if PO kits support negatives?

Hope this helps with some ideas to explore
 
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