Accounting for an Invoice When the Goods Haven’t Been Received
As per our Inter-organization Transfers business process once our manufacturing plant Baie-D'Urfé (BDU) ships the goods to other Distribution center (DC), BDU record the transaction in their Receivables, and they send the Payables Invoices to DC as soon as they ship.
DC must record the Payable Invoices first in oracle and the corresponding Receipts usually created after 1/2 weeks.
DC uses Accrue Inventory on Receipt and the 3-way matching and will be accounting the AP Invoice even if it's in Needs Revalidation/ Not approved status.
What we have noticed here is that when DC books the Invoice, the Accrual Account is being picked which is wrong as they haven’t received any Item.