2 Replies Latest reply on Oct 12, 2010 3:25 PM by 643952

    URGENT> accounting for expense lines on a PO

    643952
      hi
      on 12.0.6

      We usually create inventory item lines on a PO

      but sometimes we have to create expense lines, we either use expense items that are created in item master or we simply dont enter an item but just the description so it automatically becomes an expense line and we enter the account in the distribution

      now when we receive this expense line, it is an amount based line unlike an inventory line which is quantity based

      i cant see any accounting entries generated in the receiving transactions sumamry window for the receiving line or deliver line

      whereas in case of inventory item, the receive line has the accounting
      inventory clearing account is debited where as ap accrual of the org is credited
      the deliver line does not have entry on this window but could be viewed from material transactions where
      material account is debited and inventory clearing account is credited

      but in expense i cant see any accounting
      instead when invoice is being created matched to the PO
      the charge account automatically defaults in the line and the supplier liability account in the header

      is this happening correctly, if yes than it means that PO receipt of the expense line does not charge the expense unless we make the invoice right?


      please advise