[Karl Bar]

All –

Hoping to get some guidance on how to fix the following issue: For what appears to be random purchase orders lines that have a project number and cost category assigned to them, GP selects a WIP GL account instead of the expected inventory GL account.  For non-inventory items, the correct purchases account is defaulted.  What makes the situation more puzzling is I can’t replicate the issue when I create a new, identical PO.

I’ve checked the cards for the item and cost category, as well as the default posting accounts.  The only place that the WIP account shows us is in the cost category for WIP.  

Is there some sort of logic that GP has to know when a purchase order should be received to WIP vs inventory vs expense?  

Thanks,

Karl

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Karl Bar
Controller
Rio Marine Inc
Houston TX
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[Thaddeus Suter]

There are a few considerations but if there is a Project  on the PO, the first consideration for WIP vs Expense vs Inventory is the Project Type” T&M, Cost Plus, Fixed Price.

So first see if your Projects are different types.

Then the Cost Category usage type is evaluated. PM vs PM-IV

And lastly the Item is evaluated. IV vs Non IV.

The Project Accounts are sourced per the Project Setup Accounts matrix by transaction type. However any changes made here do not roll down to existing Projects.

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Thaddeus Suter
Retus, Inc
Helotes TX
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[Karl Bar]

Thanks for your response!

All of the POs are tied to TM projects.  The cost category usage is set to inventory, and the item card is set to inventory.  

In the project setup cost budget accounts matrix, all purchases/material transactions are sourced from the cost category.

All of the cost categories are setup so that the WIP account type is pointing to the WIP GL account, and nowhere in the cost category is the inventory GL account referenced.  

From what I can tell, when the PO is created for an inventory item, the account used is the inventory GL account from the item card.  (I tested this by changing the account on the item card and creating a new PO.)  It’s just unclear why GP would randomly try to use the WIP GL account.  

On a side note, we haven’t changed anything on any of the cost categories or general project settings, and this appears to impact newer projects as well.

Thanks again,

Karl

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Karl Bar
Controller
Rio Marine Inc
Houston TX
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